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Apple Inc.: iPhone Sales Could Send AAPL Stock Skyrocketing in 2016

Here’s What the Bears Are Missing on AAPL Stock

Jing Pan, B.Sc, MA

When a company gets as big and famous as Apple Inc.(NASDAQ:AAPL), it tends to get under a lot of scrutiny. This year, despite both phenomenal top-line and bottom-line growth, investors did not rush towards AAPL stock. Year-to-date, Apple’s stock price gained a moderate 6.9%. However, with continued growth in China and Apple’s services business, the company could get on a steady growth path very soon.

iPhone Sales Bullish for AAPL Stock

In the fourth quarter of fiscal 2015, Apple sold 48.04 million units of “iPhones,” a 22% increase year-over-year. Revenue grew even more, with a 36% improvement year-over-year to $32.2 billion. Note that the fourth fiscal quarter ended September 26, 2015, meaning it only included two business days of sales from Apple’s then newly launched “iPhone 6S” and “iPhone 6S Plus.” (Source: “Q4 2015 Unaudited Summary Data,” Apple Inc., last accessed November 26, 2015.)

Overall, the company is doing great. In fact, it just had the best fiscal year ever.

One of the engines driving that growth was China. It is a widely known fact that Chinese consumers are big fans of the iPhone and the lines are always huge when a new product gets launched. In the most recent quarter, revenue from Greater China surged an astonishing 99% year-over-year to $12.5 billion, helping to drive Apple’s total revenue up 22% year-over-year to $51.5 billion. (Source: “Apple Reports Record Fourth Quarter Results,” Apple Inc., October 27, 2015.)

Some critics might say that Apple’s success in China is not guaranteed in the future due to competitors that offer much cheaper smartphones. Here’s the thing: the iPhone is not just your average smartphone in China, but rather a premium brand and even a status symbol. In a country with a growing middle class, iPhones are bound to become even more popular.

Other than the success of its hardware business in China, Apple could also benefit from growth in its service business in the region. Recently, The Wall Street Journal reported that Apple is seeking to launch its new electronic payment service, “Apple Pay,” in China by early February. (Source: “Apple Seeks to Launch Apple Pay in China by February,” The Wall Street Journal, November 24, 2015.)

Sources said that Apple has struck deals with China’s big four state-run banks. This means users could link Apple Pay with their bank accounts. However, there could be more regulatory hurdles that Apple needs to go through before launching the service in China.

Apple Pay was first launched last year and is now available in the U.S., the U.K., Canada, and Australia. The company hopes to launch it in China before the Chinese Spring Festival on February 8.

At this point, it is uncertain how much Apple would charge for transactions made through Apple Pay in China. In the U.S., the company takes 0.15% of all credit card transactions and 0.5% for each debit transaction.

Services such as Apple Pay could be huge for AAPL stock. You see, unlike hardware products, money could flow in without the need for a product update cycle. In fact, Apple just hit an all-time record in services revenue. In the fourth quarter of fiscal 2015, revenue from services totaled $5.09 billion.

The Bottom Line on AAPL Stock

Despite having a massive amount of cash overseas, Apple has done quite a bit for investors of AAPL stock. The company returned $17.0 billion to its investors through stock buybacks and dividends during the last quarter and has completed over $143 billion of its $200-billion capital return program. With a more than sound balance sheet and growing earnings year-over-year, Apple’s stock price is likely to climb higher.

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95% Accuracy in month of November. 19/20 Wins.

Will you be able to take advantage of the thankgiving/new year discounts.

We just had a fabulous 95% Accuracy in month of November. 19/20 Wins. Yes thats right..

Thanks Giving Deals are OUT!! Grab this opportunity to avail Discount Prices last 19/20 are hits gave $$$$
https://t.co/SisTkxpuyn

We had 3 full hits weeks this week.

Good thing is i have tightened loose spots when we had 4-5 straight wins in a week iam not over stretching the week , which is good we come out full hits that week.

December should be fun trading and Earnings season comes by in Jan Feb for 1st Quarter.

Come join the fun. Ask for discounts and avail them.

Thanks,
Sasi

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Nov 27th 2015 Issued:4, Hits:4, Accuracy-100%, Portfolio up 48% in the week.

http://weeklyoptionplays.com/auto-trading/

Number Expiry Week Pick Entry Exit Result Percentage
1 11/27/2015 BUY AAPL 118 C AT MKT NOV 27 EXP 1.19 1.36 HIT 14.28%
2 11/27/2015 BUY SPY 210 P AT MKT NOV 27 EXP 0.93 1.55 HIT 66.66%
3 11/27/2015 BUY NFLX 124 P AT MKT NOV 27 EXP 2.25 2.35 HIT 4.44%
4 11/27/2015 BUY BAC 17.5 P AT MKT NOV 27 EXP 0.12 0.25 HIT 108%

My Subscribers accounts/portfolios are up 48% this week on 4 trades on $AAPL $NFLX $SPY $BAC

500$ INVESTED IN 4 PICKS GAVE US $966 gains out of total $2000 invested giving us 48% portfolio up week.

Great week of trading. Happy Subs.

Thanks,

Sasi

 

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United States Oil Fund LP (USO) Received $62.21M Net Inflows After 2.03% Assets Increase

Today were published United States Oil Fund LP (USO)’s daily net flows. The ETF registered $62.21M asset inflows for 2.03% increase, reaching $3128.54M after yestarday’s trading session. The chart of United States Oil Fund LP (USO) shows positive short-term setup. In the net flows calculation is not included the performance of the etf but only share redemptions (outflows) and share purchases (inflows). Net inflows create excess cash for managers to invest, which theoretically creates demand for the etf’s holdings. The ETF decreased 0.23% or $0.03 on November 20, hitting $12.93. United States Oil Fund LP (ETF) (NYSEARCA:USO) has declined 33.52% since April 21, 2015 and is downtrending. It has underperformed by 33.52% the S&P500.

The ETF’s YTD performance is -27.26%, the 1 year is -51.65% and the 3 year is -22.47%.

The investment seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The fund will invest in futures contracts forlight, sweet crude oil, other types of crude oil, diesel-heating oil, gasoline, natural gas, and other petroleum-based fuels that are traded on the NYMEX, ICE Futures Exchange or other U.S. and foreign exchanges.

United States Oil Fund LP (USO) is in the ETF category: Commodities Energy, is part of United States Commodity Funds LLC fund family and currently has $2.80B net assets. It was started on 4/10/2006. United States Oil Fund LP (USO) is in the ETF category: Commodities Energy, is part of United States Commodity Funds LLC fund family and currently has $2.80B net assets. It was started on 4/10/2006. The fund’s top holdings are: Future Contract On Wti Crude Future Dec15 for 48.44% of assets.

 

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A Closer Look at the SPDR S&P 500 ETF Trust (SPY) and More – Smarter Analyst

A Closer Look at the SPDR S&P 500 ETF Trust (SPY) and More – Smarter Analyst

by Marcelo Perez

 This past week, the S&P 500 Cap-Weighted Index ((IVV)) tested and then held support at the 50-day moving average (at least for now) during this remarkable rebound from its crushing meltdown earlier this year. We may once again test resistance at the previous breakdown level (2100) this coming week.  The S&P 500 is up 3.45% for the year.

The S&P 500 Equal-Weighted index ((RSP)) is set up so that every stock in the index has the same weight, thereby eliminating the market-weighting growth bias. As a result, the index tilts more towards mid-cap and value stocks, which accounts for much of the out-performance versus the cap-weighted index in the last decade. So far this year, the index is down 0.38% year-to-date, slightly underperforming the cap-weighted index.

One of the themes of the past decade has been growth-oriented, smaller cap stocks outperforming high quality, blue chip stocks. That trend is no longer intact for 2015, as the bottom fell out from under the Russell 2000 index ((IWM)) in the 3rd quarter. IWM is underperforming the large cap index, and is down 1.34% YTD.

The S&P 500 versus the Russell 2000 Index, Weekly Chart. It seems that the large cap index has broken out in the past couple of months. A big move was expected, and that is now coming to fruition.

Looks like the weakening Chinese economy managed to deflate the MSCI EAFE Index ((EFA)). The index is up 1.82% since the beginning of the year, slightly worse than its US counterpart, even after outperforming by a wide margin earlier in the year.

The MSCI EAFE Small Cap ((SCZ)) has performed significantly better, impressively holding onto a gain of 9.06% for the year. Unlike the US markets, international small caps are outperforming their large cap index.

EAFE Large Cap Index vs EAFE Small Cap Index, Weekly View. It’s been a steady small cap outperformance since October of last year.

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Crude tumbles as analysts brace for prices under $40-a-barrel

By

Jenny  W. Hsu

Crude oil prices lost traction on Monday as supply glut concerns overshadowed a report showing a decline in the U.S. oil-rig count.

On Friday, oil prices turned higher after industry group Baker Hughes reported that the U.S. oil rig count fell by 10, sparking some optimism that oil production in North America is tapering down. While some discount the measure’s usefulness, others in the market use it as a gauge of how production might rise or fall in the future.

However, analysts say market participants remain nervous that oil majors, particularly those in the Organization of the Petroleum Exporting Countries, will continue to ramp up output amid low prices for the sake of defending market share.

The organization is scheduled to meet on December 4 in Vienna. Various reports say the bloc plans to maintain the same policy despite protests by the less cash-rich smaller players.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in January CLF6, -2.91%  traded at $40.67 a barrel, down $1.19, or 2.8%, in the Globex electronic session. January Brent crude LCOF6, -2.06%  on London’s ICE Futures exchange fell $0.87, or 2%, to $43.78 a barrel.

“A fall below $40 per barrel[for West Texas Intermediate] is very possible and real,” said Barnabas Chen, an OCBC commodities analyst who said traders are mostly in a cautious mode as they expect the global supply glut to worsen next year due to expanding oil stockpiles.

Last week, the U.S. energy department reported the country’s crude inventories increased by 0.3 million barrels in the week ended November 13.

“At 487.3 million barrels, U.S. crude oil inventories remain near levels not seen for this time of the year in at least the last 80 years,” said the official report.

Energy analysts say prices will be further pressured when Iranian oil returns to the market in the coming months, exacerbating oversupply woes.

“The OPEC factor has been mostly priced in but when the sanctions against Iranian oil are fully lifted, we might see another price collapse,” said Daniel Ang, a Phillip Futures energy analyst.

Another factor weighing on oil prices is the rising dollar on anticipation that the U.S. Federal Reserve might tighten monetary policy in the next month policy meeting. As the industry’s standard currency, a stronger greenback means more expensive oil for traders holding other currencies.

This week, analysts will be taking cues from U.S. economic indicators such as manufacturing data, weekly jobless claims, and a forecast for third-quarter gross domestic product.

Nymex reformulated gasoline blendstock for December RBZ5, -1.18%  —t he benchmark gasoline contract — fell 48 points to $1.2855 a gallon, while December diesel traded at $1.3596, 117 points lower.

ICE gasoil for December changed hands at $421.75 a metric ton, down $3.00 from Friday’s settlement.

 

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$FB Stock: Facebook Inc Could Be a $1 Trillion Dollar Internet Powerhouse

By George Leong, B.Comm.

Published: November 22, 2015

When Facebook, Inc. (NASDAQ:FB) debuted in May 2012 at around $42.00 a share, much of the talk circulated around the absence of profits and a clear vision by founder and CEO Mark Zuckerberg. Could the company’s staggering user base of more than one billion unique members be turned into a profitable formula for owners of FB stock?

Facebook had its rough moments early on, even falling to the $17.00 level in September 201,2 as traders debated how to price FB stock. In the world of hindsight investing, it was an opportune buying opportunity for those who realized the company had an amazing asset: two billion eyeballs.

Fast-forward three years or so and Facebook has transformed into a bellwether stock for the Internet social media space. The company leads the industry, while nearly every other social media stock, including Twitter, Inc. (NASDAQ:TWTR), struggles to find its niche. It’s unclear now, but Twitter could be undergoing some temporary issues. TWTR stock could easily vault if CEO Jack Dorsey can grow the company’s stalled user base, monetize assets, and inject a little more excitement into investors. He’s got his work cut out for him.

Why Facebook Is the Face of the Internet

Imagine Mark Zuckerberg when he was at Harvard and attempting to develop a social platform where people could connect. Obviously, it required a simple idea, but a bigger vision and lots of innovation. This is exactly what has propelled FB stock above $100.00 a share and a market value in excess of $302 billion.

facebook nasdaq stock chart

Chart courtesy of www.StockCharts.com

While the ascension in the company’s share price has been superlative, I believe there is much more room to grow, albeit the company will face hurdles along the way.

Consider that Facebook is still shut out of China, the world’s biggest Internet market. While strict freedom of expression laws are the norm in China, a breakthrough into the Chinese market could be a major game-changer for Facebook, allowing the company’s share price to catapult higher. This would allow the company to greatly increase its user base and the Internet space rewards companies for user growth. That’s why companies like Facebook and Netflix, Inc. (NASDAQ:NFLX) are rewarded, but Twitter appears to be banished, at least for the time being.

Considering its valuation, Facebook is not excessive at 37-times (X) its 2016 earnings and it has a relatively reasonable price-to-earnings growth (PEG) ratio of 1.66. Paying only 1.66X the estimated five-year CAGR for earnings is definitely attractive.

Consider this: revenues are slated to grow 39.9% to $17.43 billion this year, followed by another 37.9% to $24.03 billion in 2016, according to Thomson Financial. That’s pretty big growth and considering these numbers, I repeat, the company’s current valuation is rather reasonable.

However, what is perhaps most exciting is the company’s success to monetize its user base and drive revenues in the highly competitive mobile advertising space. In the third quarter, the key mobile advertising area generated about 78% of the company’s total advertising revenue, up from 66% a year earlier and 49% in 3Q14. Facebook’s strategy is clearly working.

The Bottom Line on FB Stock

Over 1.01 billion people used Facebook on a daily basis in September. Of this, 894 million were mobile users. The number surges to 1.55 billion based on monthly active users in September, with mobile at an astounding 1.39 billion users.

Make no mistake about it: Facebook is the top social media stock in the world. I can see the market value eventually eclipsing a trillion dollars somewhere down the road, especially if it can break past the Great Wall of China.

 

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The CBOE Volatility Index (VIX) sonar video seems to have disappeared into the ether. But here’s the deal — about the same time as the VXX fireworks, a player bought 120,000 January 2017 9-strike puts in ProShares Trust Ultra VIX Short Term Futures ETF (UVXY) for $5.10.

The CBOE Volatility Index (VIX) sonar video seems to have disappeared into the ether. But here’s the deal — about the same time as the VXX fireworks, a player bought 120,000 January 2017 9-strike puts in ProShares Trust Ultra VIX Short Term Futures ETF (UVXY) for $5.10.

UVXY is more or less identical to VelocityShares Daily 2x VIX Short Term ETN (TVIX). It tracks two times the VXX, but it’s an exchange-traded fund (ETF), whereas TVIX is an exchange-traded note (ETN). Other than that fun time when TVIX stopped creating new shares for a couple weeks and sat above net asset value — then started creating shares again, and promptly imploded — they move in unison. And by unison, I mean “drift to zero.”

These pups are basically the worst products ever created. VXX drifts lower over time, as we all know. Trackers also tend to drift lower on their own, thanks to compounding. A tracker can actually outperform over a specific time frame if the “trackee” makes a trend move. But since VXX always trends down over the long haul, all that means is that TVIX and UVXY trend down even faster. Throw in the two times leverage, and you have a perfectly horrendous hold. They may explode up in blips, as VXX does occasionally pop. But over time, they will go towards zero.

UVXY is near $15 as I type. So in a vacuum, paying $5.10 for these puts seems nuts. That’s a $61.2 million dollar investment. For it to pan out, UVXY will have to go below $3.90 in 22 months. That’s more or less three-fourths of its current “value” … but I hereby predict the buyer makes a profit.

Back in the here and now, I’m not sure I get the cause and effect between this trade and the VXX action on Friday. Someone (probably multiple someones) filled the UVXY put buy. So they’re now long UVXY, which you can convert to a de facto long in VXX. So the “effect,” on the margins, should be to knock VXX down. But it was the opposite — VXX blipped up.

Clearly there was a connection, as it all took place at the same time. Maybe the same party entered the order simultaneously? If so, nice trade by the “locals,” though I’m not sure at the end of the day that a VXX short really hedges a LEAPS put sale in UVXY all that well.

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$IBB Still a Stellar Long-Term Buy

By Sam Collins, InvestorPlace Chief Technical Analyst

iShares NASDAQ Biotechnology Index (ETF) (IBB) — This ETF rallied 3.2% Tuesday on strong earnings from several major drugmakers. Chief among them was Gilead Sciences, Inc. (GILD). Gilead beat analysts’ estimates for the third consecutive quarter and raised its revenue guidance for the full year. Shares jumped 2.1%.

GILD is the second largest holding in IBB. Other top holdings include Biogen Inc (BIIB), Celgene Corporation (CELG), Amgen, Inc. (AMGN) and Regeneron Pharmaceuticals Inc (REGN).

I featured IBB in the Sept. 22 Daily Market Outlook, saying: “The breakdown from an ascending wedge will probably end in at least a 20% decline from the July 20 high at $400 for a minimum downside target of $320. IBB could even challenge the low of $284, made on Aug. 24, but that is unlikely.

“While IBB looks poised for a deeper decline, the growth rate of the biotech group is spectacular. Traders may want to place good ’til cancelled (GTC) orders to buy their favorite biotech stocks at a 20% discount to their recent highs.”

After hitting a low under $286 on Sept. 28, IBB consolidated in a channel up. It jumped through the top of that channel Tuesday only to run into its 50-day moving average at $328.48.

The post-earnings pop may continue today; however, look for another pullback following the majority of quarterly reports. This time, support is at the bottom of the consolidation channel at about $300.

Continue to hold IBB if you own it. New buyers should try to purchase shares under $310. Because of the outstanding long-term potential of the fund’s holdings, traders may opt not to trade out of IBB at the 200-day moving average ($348) and even add to positions on pullbacks. The longer-term price target is $400-plus

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mean short term price target for Visa Inc. (NYSE:V) has been established at $86.19 per share.

Visa Inc. (NYSE:V): The mean short term price target for Visa Inc. (NYSE:V) has been established at $86.19 per share. The higher price target estimate is at $93 and the lower price target estimate is expected at $76 according to 16 Analyst. The stock price is expected to vary based on the estimate which is suggested by the standard deviation value of $4.69

For the current week, the company shares have a recommendation consensus of Buy. Many analysts have commented on the company rating. Equity Analysts at the Brokerage Firm, Pacific Crest, maintains their rating on the shares of Visa Inc. (NYSE:V). Pacific Crest has a Overweight rating on the shares. As per the latest research report, the brokerage house raises the price target to $80 per share from a prior target of $76. The rating by the firm was issued on November 3, 2015.

Shares of Visa Inc. rose by 1.62% in the last five trading days and 5.67% for the last 4 weeks. Visa Inc. is up 9% in the last 3-month period. Year-to-Date the stock performance stands at 23.61%.

On a different note, The Company has disclosed insider buying and selling activities to the Securities Exchange, The officer (VICE CHAIR RISK & PUB POLICY), of Visa Inc., Richey Ellen had unloaded 4,785 shares at $277 per share in a transaction on March 2, 2015. The total value of transaction was $1,325,445. The Insider information was revealed by the Securities and Exchange Commission in a Form 4 filing.

Visa Inc. (NYSE:V) : On Wednesday heightened volatility was witnessed in Visa Inc. (NYSE:V) which led to swings in the share price. The shares opened for trading at $78.96 and hit $80.5 on the upside , eventually ending the session at $80.46, with a gain of 2.07% or 1.63 points. The heightened volatility saw the trading volume jump to 7,212,397 shares. The 52-week high of the share price is $80.25 and the company has a market cap of $176,763 million. The 52-week low of the share price is at $60 .

Visa Inc. (Visa) is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and electronic payments. The Company operates in Payment Services. The Company operates processing networks VisaNet, which facilitates authorization, clearing and settlement of payment transactions worldwide. It also offers fraud protection for account holders and assured payment for merchants. The Company operates an open-loop payments network in which Visa connects and manages the exchange of information and values between: issuers, which includes financial institutions that issue Visa-branded cards or payment products to account holders, and acquirers, which includes financial institutions that contract with merchants to accept Visa-branded cards or payment products.

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