Good Morning, lets get started

Posted on December 7, 2005 , filed under Stocks | Print This Post

Yesterday, in the last hour of trading, the market gave up most of the gains we saw in the morning and early afternoon. BIDU, Baidu.com, Inc. has traded in the $77-$80 range since November 30th, 2005. GOOG, Google Inc. has traded in the low $400’s since November 30th, 2005. I expect both stocks to jump up if the market posts strong gains in mid to late December. I still remain confident that BIDU’s stock price has been over inflated by speculation and greed. I’ve written in detail about BIDU in previous articles. I recommended investors interested in BIDU to read through my archives. I will look to short shares of BIDU if the stock hits $85 by the end of this week.

It looks like AAPL, Apple Computer Inc. has strong momentum behind it, following a recent deal signed with NBC that will allow iTunes users to purchase previously broadcasted NBC television shows and content. I actually expect this to be a hit among video enabled iPod users. UBS analyst Benjamin Reitzes, has raised his price target for APPL from $74 to $86. I predicted earlier that AAPL’s all time high would be $80. I predicted that AAPL would reach $70 by the end of the year which it passed on November 28th, 2005. I believe AAPL’s rise to be aggressive, but the speed of the stock increasing has exceeded my expectations. There is a lot of speculation over the company’s growth rate and long term prospects driving the increase in AAPL’s stock price. I believe that Apple will not be able to sustain such positive growth over the long term. AAPL is highly dependent on the iPod and unless the company opens the DRM technology behind iTunes to other portable audio devices I see the company’s growth tied solely to the iPod. Any slowdown in iPod sales will cause the price of AAPL to drop. I expect the drop in AAPL to be almost as rapid as its rise. I would look at shorting shares of AAPL above $80.

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