Samawi Earnings Research

Oil & Apple Mix In Boosting U.S. Economy

In November 2012 we published the article "Obama Win Effect: Cash-Rich Companies Will Lead Economic Boom", whereby we predicted that U.S. economic growth will accelerate during Obama's second term, driven by cash-rich companies including top ranked Berkshire Hathaway (BRK.B), Apple, Inc. (AAPL), Microsoft (MSFT), Cisco (CSCO) and Google (GOOG). Naturally, that would also bode well for the performance of the shares of those companies. At such time, many had expressed skepticism about future economic growth during Obama's second term, as economic growth during Obama's first term had averaged +0.7% annually (but ultimately came in at +0.9% once Q4-2012 GDP results were actually published).

With half of Obama's second term behind us now, U.S. real GDP growth rate has averaged about 2.2% annually in 2013 and 2014*, a marked improvement over the first presidential term. Meanwhile, Fitch is now expecting U.S. GDP growth of 3.1% in 2015 and... Complete Story

Is It Time To Sell Microsoft?

Since the start of the year, Microsoft (MSFT) has added almost $90 billion in market capitalization, as its shares have appreciated by about 33% from $36.41 on December 31, 2013 (on a split and dividend adjusted basis) to $48.42 on December 5, 2014. Microsoft market capitalization today stands at $399 billion, higher than the annual GDP of oil rich United Arab Emirates and Thailand (according to the World Bank). It ranks as the second largest U.S. company after Apple (AAPL) ($674 billion) and ahead of Exxon (XOM) ($397 billion). This year alone, the $90 billion increase in Microsoft's market capitalization is larger than oil rich Oman's 2013 GDP of about $80 billion. Can Microsoft shares maintain such gains and appreciate much further, or is it time to sell?... Complete Story

This article is the third in a series of four articles dedicated to following up on our October 15, 2013 article "4 suppliers and an ETF set for Apple boost", whereby we recommended buying Apple, Inc. (AAPL) in addition to its suppliers Skyworks Solutions Inc. (SWKS), Qualcomm Incorporated (QCOM), Micron Technology Inc. (MU) and Broadcom Corp. (BRCM). Furthermore, we also recommended buying Vanguard total stock market index fund (VTI).

Since the publication of such article, Broadcom shares have appreciated by 64.56% (on a dividend and split adjusted basis) from from $26.21 on October 14, 2013 to to $43.13 on November 28, 2014. In the first article of the series, "Up 169%, is Apple supplier Skyworks still a buy?", we provided our current outlook on Skyworks, while... Complete Sory

By Bachar Samawi

Wednesday Oct 24, 2012 09:28:32

 

What is money? According to the Merriam-Webster dictionary, money is "something generally accepted as a medium of exchange, a measure of value, or a means of payment." Most importantly, money also functions as a store of value, whereby it "must be able to be saved and retrieved at a later time, and be... Complete Story