This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple's Decade: How It Can Hit $500

Editor's note: This is the fifth excerpt of an e-book on Apple by Jason Schwarz, an analyst at Lone Peak Asset Management in Westlake Village, Calif. Here are Part 1, Part 2, Part 3 and Part 4.

Let's take a moment to outline the key components of a good investment. Here is what I look for:

1. Economic Timing: As far as I am concerned, economic timing is the only way to find conviction in the stock market. The basic philosophy of economic timing is built upon the premise that you should invest in stocks when the economy is improving and you shouldn't invest in stocks when the economy is worsening.

I apologize to all you brilliant investors out there who utilize your sophisticated strategies, but backtesting shows that investing really is that simple. Those who seek to employ any other strategy are swimming upstream.

Most Popular
Apple's Decade: How It Can Hit $500
Most Commented
Biotech Stock Mailbag: FDA Playbook

When the economy is improving, as it is now, I am on the lookout for the perfect growth vehicle to maximize returns. When the economy is worsening, it is no time to expect high returns and a book like this that suggests a stock may be on the verge of running should be put on the shelf. (If you want a complete explanation of the economic-timing strategy, read my book, The Alpha Hunter, set to be released by McGraw Hill in December 2009 or sign up for my investment newsletter service at www.economictiming.com.)

2. Market-Share Growth: Is the company gaining market share or not? If not, my research on that particular stock won't continue and it's time to find something else. How rigid are the barriers to entry in your industry? Are you vulnerable to getting knocked out by competition? These are vital questions to ask when analyzing a stock. A company that can affirmatively answer each of these questions is a prime candidate to be in the portfolio.

> > Bull or Bear? Vote in Our Poll

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.00%
NOK $7.22 0.00%
T $34.71 0.00%
VZ $49.61 0.00%
FB $80.54 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs