Saturday, September 23, 2017

Apple: Buy the Dip?

Over the last couple of weeks, people have been buzzing about the iPhone 8 and the iPhone X. However, investors don't seem to be too happy about it. Shares of Apple Inc. (NASDAQ:AAPL) have been dropping from their high of $164.94, closing at $151.89 on 9/22/17. Among other issues, there are concerns that:
  • Customers will ignore the iPhone 8, waiting for the iPhone X instead
  • iPhone X is overpriced (starting at $999)
  • Release date (11/3/17) of iPhone X will push some sales into 2018, especially if there are delays
  • Apple Watch 3 connectivity issues will hamper sales
While there is truth to these concerns, it pays to look at the bigger picture. Apple is a very solid investment - a powerful company with great products and a loyal customer base. iPhone X should deliver strong profits for the company, even if they come a bit later than investors were hoping for. We've been holding Apple for several years now, but the recent drop may be a chance to pick up additional shares while they are on sale. We are going to be watching Apple closely, waiting for the price to stabilize before pulling the trigger.

Monday, September 4, 2017

Happy Labor Day

Happy Labor Day! Today we celebrate the American labor movement and the social and economic achievements of American workers. And how do we celebrate it? By taking the day off! Relax and spend time with family and friends. But be ready for the market to reopen tomorrow!

Saturday, September 2, 2017

Driving Income with Ford

For over 100 years, Ford (NYSE:F) has been innovating in the automotive world. In its early days, the company revolutionized production through the efficiency of assembly lines. Now, there is strong competition both domestically and internationally. To stay ahead Ford must embrace new technologies.

While some considered it a mistake, the switch to aluminum in Ford’s F-150 shows that the company is forward thinking. GM continues to mock them for this in advertisements, but aluminum allows Ford to reduce the vehicle’s weight and therefore improve fuel economy. Pretty soon, GM and other competitors will find that they are lagging behind. In addition, Ford is starting to get serious with electric cars and autonomous vehicles. They are not leading the industry in these areas at the moment, but they are pushing strongly ahead.

Over the last few years, the market has not been kind to Ford. Share prices climbed above $17 in 2013 and 2014, but slowly declined to below $11 last month. They are on the way back up, but the stock still seems undervalued. This presents an opportunity to pick up a great company for a great price, and collect a 5%+ dividend along the way!