Dynamic Wealth Report | April 28, 2014 Warren Buffett, Eat Your Heart Out! Not even the Oracle of Omaha did what I just did. I closed 30 trades in 2013 – and WON each one. (No losses!) Great News: This unkillable 'Super-Trend' is on course to deliver another $237,050 in top-line profits. I'm talking SEISMIC PROFITS like: +431% profit on GE…+138% on DirecTV… +212% on Microsoft… +378% on BAC. See why I predict another 90 Days of Clear Sailing... Apple (AAPL) Is Still The King Of Equities By Gordon Lewis, Options Trading Research Of all the surprises from this earnings season, none was as impressive as Apple (AAPL). The company flat out blew away all the analysts' estimates, and then some. Here are some of the details… Apple's first quarter profits came in at $11.62 per share on revenues of $45.6 billion. Analysts had predicted earnings per share of $10.18 on revenues of $43.5 billion. Can you say 'underestimated'? What's more, these same analysts projected iPhone sales of 37.7 million. Actual sales were a whopping 43.7 million units. Clearly, the iPhone continues to be a dominant brand. Oh, by the way, Apple also ratcheted up it buyback plan another $90 billion, hiked its dividend by 8%, and approved a 7-for-1 stock split! The stock jumped about 8% on the news, with shares up near their 52-week high. So, given the big move, is AAPL still a buy? In a word… yes. Here are some reasons why AAPL may have plenty of upside left… First off, despite the jump higher, the stock is still substantially undervalued. The shares are trading at roughly 14x earnings and 12x projected earnings. The S&P 500, per contrast, is trading at over 18x earnings with an historical average of 15.5x. Moreover, AAPL has several potential growth catalysts this year. The iPhone 6 is likely to come out later in the year and is already generating significant buzz. Plus, a new product is also likely due out – such as the iWatch or something similar. Finally, with AAPL's 7-for-1 split, the stock is much more likely to be added to the Dow Jones Industrial Average. Due to the way the DJIA is calculated, AAPL couldn't be added to the index unless it split. It may not seem like a big deal, but if the stock is added to the Dow, it will also be added to several index tracking funds – and thus will see a new flood of stock purchases. Bottom line, there are plenty of good reasons why Apple is a buy at these levels, despite the big jump in the shares after earnings. Also, given the fundamentals, the share price has limited downside. For you option traders, it could be a good opportunity to sell puts. Limited downside and solid upside potential is always a good recipe for a put selling strategy. Yours in Profit, Gordon Lewis Could You Be Going Broke On "Blue Chips"? For years, the Wall Street "story" has been buy Blue Chips because of their "security". Let me ask you a question- After years of an up and down market, hyperinflation, and bailouts for Wall Street, are you feeling secure? Are you ready to take control of your investment life and start putting your money to work for you instead of for the Wall Street bankers? Click here to find out how. | | | | | | | Copyright 2014 Hyperion Financial Group, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This email may only be used pursuant to the subscription agreement controlling use of the Dynamic Wealth Report website and any reproduction, copying, or redistribution of this email or its contents, in whole or in part, is strictly prohibited without the express written permission of Hyperion Financial Group, LLC. LEGAL DISCLAIMER: Neither Hyperion Financial Group LLC nor any of it's employees, contractors or officers are registered investment advisors or a Broker/Dealer. As such, Hyperion Financial Group, LLC does not offer or provide personalized investment advice. Although Hyperion Financial Group, LLC employees and contractors may answer general customer service questions, they are not licensed under securities laws to address your particular investment situation. Nothing in this report, nor any communication by our employees or contractors to you should be considered personalized investment advice. Owners and writers may have positions in the securities that are discussed. However, no associated employees or contractors may intentionally engage in any transaction that directly or indirectly competes with the interests of our subscribers. We accept no compensation from any companies mentioned in our reports. Past performance is no guarantee of future results. All information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell any security. All opinions, analyses and information contained herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. Investments recommended in this publication should only be made after consulting with your financial advisor. | |
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