Apple Cart: This Week's Apple News
Even with everything happening, the stock is still cheap according to analysis.
Or not. At the risk of being disrespectful to nine angry jurors who happen to have been sitting 10 miles from Apple headquarters, maybe the company's victory against Samsung (SSNLF) in a patent dispute battle isn't the show-stopper it seems
A second look suggests that Samsung, and by extension Google (GOOG), may walk away practically unscathed if not actually strengthened by the jury's ruling that Samsung swiped Apple's technology.
Meanwhile, Motorola Mobility's war with Apple took an unexpected turn this week. A filing Monday showed that Motorola (MSI) has agreed to license some of its patents to Apple in Germany. No specific details of the licensing agreement, including timeline or royalty rates, have been disclosed at this point.
According to Canaccord Genuity, tech site Endgadget.com notes that the agreement has Apple admitting that it is liable for past damages relating to the patents and that the terms of the agreement seem to include "cellular standard-essential" patents, which means Motorola's claims regarding WiFi and video codecs could still be used in future patent suits. Motorola's complaints with the International Trade Commission have targeted syncing technologies and bookmarking media playback on one device to resume on another.
There's a new iPhone on the horizon and although Apple hasn't confirmed directly, it is paying customers to recycle their iPhone 4, offering $345 back in the form of an Apple Gift Card.
Finally, Apple may be at the forefront of killing plastic. Several articles have been suggesting that an unidentified chip in the new iPhone is, in fact, a near-field communication (or NFC) device, which is a chip that would allow the iPhone to be swiped like those old SpeedPass wands that Exxon Mobil (XOM) started issuing in the late '90s. If that's really what this chip is (and it seems incredibly likely since Apple has been developing remote payment apps and beginning to integrate NFC code into the new version of iOS), you'll be able to buy coffee and groceries, board a bus or a subway, and more -- just by swiping a phone over a sensor.
Apple Stock Still Cheap
For investors, going long Apple at this point is mentally challenging; with a $600 billion market cap, what can your return on capital realistically be at this juncture? According to ChartLabPro, the stock is far from being overbought both looking at either the standard deviation above its 50 day moving average or Chartlabpro.com's proprietary countertrend indicator. First and foremost we are quantitative in our investment selection. Our proprietary systems went to a strong buy back when the stock was trading at $592.00. Even though we are first quantitative, we do look at other factors as well, such as fundamentals. The market does realize that the stock is fairly cheap both on a cash flow and earnings basis.
However, the iPhone 5 may be a game changer, as analysts believe this could be the largest product cycle yet for Apple's iPhone.
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