Thursday, July 15, 2010

Stock Option Trade Alert on Apple (AAPL): Tuesday, 7/20, at 11ET ..

POTC kicked off Q2 with another solid directional call on GOOG. Shares slipped sharply after hours and we anticipate further price erosion by Friday's close. Subscribers reaped a 200%+ profit overnight.

In the Trade Alert, we highlighted that GOOG's SG&A costs would hurt Q2 performance, and that is the buzz on Wall Street post report.

A well-respected technology analyst, Piper Jaffray's Gene Munster, appeared on CNBC's Fast Money post report and mentioned  GOOG's fate could be going the way of MSFT: a company in transition as growth slows. The law of "big numbers" is a good way to explain the corporate dilemma GOOG is facing. Going from today's $157B ($494/share) market cap to $250B ($787.00/share) will not be easy.

We agree with Gene Munster in the short-run at least, and believe the next few quarters will be marred by more difficult Q/Q and Y/Y comparable earnings, as increased spending crimps bottom line/profits/earnings per share.

POTC estimates ramping legal costs associated with battles over privacy as related to search and collection and storage of user data, these will be awfully high hurdles GOOG could stumble on in the weeks and months ahead. And if the U.S. Department of Justice (DOJ) gets involved, a lot of GOOG's talent could exit for greener (less regulated) technology pastures. Because so far, GOOG has been very high up on the list the brainiest prefer.

Thanks to all who signed-up in the last few days, we truly appreciate your trust. We are always excited to receive your questions via e-mail and look-forward to answering anything related to the politics of money, banking, and trading.

Form 10-K link for AAPL, filed on January 25, 2010:

AAPL's Conference Call link for Q3's financial results, 5:00pm ET, Tuesday, July 20:


Anonymous said...

THANK you guys again for your work on the trading alerts. You have never let me down. Your insights are fresh and helpful. Your track record on options is better than anyone I've followed. Great service, Dr. Nurel Choudhury.

Anonymous said...

agree nurel, bought the $480's on close, so i'm excited about friday!!! chris in az

Anonymous said...

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Anonymous said...

180% is not bad return in one day! mucho thanx to you and all involved adam, dan in Austin TX