Stocktoberfest 2012: SAMPLE – Apple (AAPL)

Friday, September 28, 2012 2:11 pm



This is a sample of the analysis we will be doing for Stocktoberfest 2012. Take a look at all of the area that we cover and then make sure to come to the site daily during the month of October. We will have a master list of the stocks and who sent in the request.

THIS IS ONLY A SAMPLE OF WHAT IT WILL LOOK LIKE – DO NOT USE AS A GUIDE FOR ANYTHING!!!

Stay tuned!

Horowitz & Company’s proprietary Fundamental Scoring System (F|score) takes into consideration many factors related to each company’s financial history and outlook.  This system is oriented toward a growth model and therefore will give a higher score to those companies which continually show increasing earnings per share and revenue over time.  Over the long-run (and when looking to purchase a security) we prefer companies with a track record of growth and solid fundamentals.  In the short-term however, it is price / technicals that pay.  When investing, we combine both of these analyses to seek out possible investment opportunities within our universe of stocks.This stock ranks very highly with regard to fundamental factors and could be considered a candidate.  See below for details on where this company thrives and possibly some of its drawbacks:We find that EPS Growth on a Quarter over Quarter basis is one of the strongest components when screening for growth stocks.  Continued EPS Growth in a company generally shows strength in leadership, the ability to manage expenses and improve the bottom line.Over the last three quarters, this company has done exceptionally well producing EPS Growth Rates last quarter, 2 quarters ago and 3 quarters ago 19.64%, 92.19%, 115.71% respectively.Revenue Growth similar to EPS Growth is also a strong component to consider when screening and scoring for growth companies.  Continued growth in revenue shows that the company is innovative, marketable and its products remain relevant in the marketplace.Over the last three quarters, this company has done exceptionally well producing Revenue Growth Rates last quarter, 2 quarters ago and 3 quarters ago 22.58%, 58.86%, 73.27% respectively.The 5 Year EPS Growth Rate has added to the fundamental score with a value of 64.90

Last quarter this company reported Earnings Per Share -10.13% worse than analysts had expected.  We believe this surprise although only for one quarter could set a trend for future earnings reports and guidance.

Price relative to earnings growth is commonly referred to as the PEG Ratio.  This company may contain added value as it’s PEG Ratio is 0.69.  We generally would like to see the PEG ratio under 1.5 and it is even better if it is under 1.0.

 

Horowitz & Company’s proprietary Technical Scoring System (T|score) takes into consideration both individual security technicals as well as the overall market direction when considering whether or not to purchase a company. H&C’s Market Trend Indicator (MTI) is a measure which is designed to evaluate the overall trend in the market.  There are four designated levels to assess the trend which include:  Strong Downtrend, Downtrend, Rally and Strong Rally.  We are currently in an environment where the MTI is in a Downtrend.All of our indicators are showing that the markets are attempting to rally out of a Strong Downtrend or have pulled back from a Rally.  Although one should still remain cautious when purchasing individual securities, this may be the time for those with a higher risk tolerance to begin to enter the market or add to those positions with a high level of technical scoring.  With that in mind, this stock ranks in the mid to below average percentile of stocks from an individual security technical score.H&C would not consider purchasing this position in any general market with the exception of a Strong Rally.  H&C would be hard pressed to purchase this position even in a Strong Rally considering all other companies that may score higher technically in our growth model.Below are some of the areas where Apple Inc (AAPL) excelled or detracted from the value of the technical score.Stochastics are currently showing some bearish attributes which may mean this stock is slightly overbought in the short run.In terms of price and volume especially over a short period of time it is important to see if there is any weight behind either a rally or correction. This company has shown to have less than favorable price action in terms of volume and therefore has a greater chance to move lower if the overall market and economy are to trend lower.  Higher volume with negative price also will provide resistance levels for this position if it were to increase back to these levels.

On a 12-month rolling period this company has performed very well when comparing against its peers and equities in the S&P 1500.  We see this as a positive sign for this company as it shows strength relative to the overall market

H&C currently sees Apple Inc (AAPL) in a Short Term Downtrend and Long Term Downtrend

 

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2 Responses to “Stocktoberfest 2012: SAMPLE – Apple (AAPL)”

  1. Ed Bradberry on October 1st, 2012 9:46 pm

    Andy – you are great man. Keep it up.
    I am going to try the triggerpoint.
    I listen every week, you do a great job and really fill me in with what is going on.
    I wanted to suggest RIG for your analysis – stocktober
    Also, on podcast, how do you feel about coal. As I value guy I think the sell off is overblown. Plants take forever to move to nat gas so it is not like coal will not be with for a good long while.
    What do you think?
    You need to have John Doody (gold stock adviser) on or Charles Nenner. I am excited you are having Das back. What to hear what he has to say.
    Keep up the good work!
    Ed

  2. Andrew Horowitz on October 2nd, 2012 9:04 am

    :-)
    Much thanks!

    A


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