Is Apple (AAPL) a bubble waiting to burst?

It's interesting following the iPhone and iPod company Aaple recently especially with the recent valuation that places it slightly North of $700Billion. This makes it the world's most valuable company in terms of market capitalization. Now, I am an Aaple enthusiast and buy into their philosophy of making long lasting quality products. The shares of Aaple closed at around $124 today and both the Bulls and the Bears have their cases as to why this valuation of the stock price is either too conservative or hugely inflated. One of Aaple's biggest shareholder Carl Icahn and his fund seems to think that shares of Aaple should be trading somewhere North of $226 per share giving Aaple a valuation of around $1 Trillion which would make the company's worth similar to the GDP of South Korea. Interesting to say the least. Question remains, is Carl Icahn right? Or is Aaple's stock just a bubble waiting to pop? 

Beware of Guaranteed returns on Investment schemes

I call them schemes because that's exactly what they are. The schemers talk you into a seemingly win win investment, guaranteeing unbelievable returns. You buy into it, sit back down and then the waiting game begin. Before long, you realize you've been duped and the investment Gurus have closed shops. Then your troubles begin.

Recently I was reading about this investment firm that was specializing in Forex trading somewhere close to Nairobi. These guys duped investors billions of shillings then just jumped ship and authorities are trying to locate them. Some things I considered red flags the first minute I heard about their operation were, guaranteed returns on your money after about a month and so on and so forth. Well am writing this blog to educate my readers on some things they need to look out for or consider when trying to find worthy investments.

1. Never buy into an investment that promises you guaranteed returns. Investments are risky and no one really knows how a security is going to perform.

2. Only invest money you can afford to lose. While most brokers and financial advisors will try hard to make your portfolio grow, nothing is ever a guarantee.

3. Invest conservatively first before getting into speculation.

4. Use multiple tools of investing like stocks, forex, bonds, mutual funds and so on. In other words, diversify your portfolio.

5. Lastly do your due diligence. Don't invest blindly.

Useful Links

www.investopedia.com

For all the basics of investments

www.sec.gov

For all regulatory procedures

http://apps.finra.org/meters/1/scammeter.aspx

If you suspect an 'investment' to be a scam, just run it through this tests and see. This might help you avoid a scam.

Bill Ackman simplifies business and investments

Technical Analysis: Death Cross & Golden Cross

I copied and pasted this straight from http://www.investopedia.com/terms/d/deathcross.asp

Definition of 'Death Cross' A crossover resulting from a security's long-term moving average breaking above its short-term moving average or support level.

Investopedia explains 'Death Cross' As long-term indicators carry more weight, this trend indicates a bear market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new resistance level in the rising market. Golden Cross   A A A Filed Under: Bull Market, Support And Resistance, Technical Analysis, Technical Indicators     Definition of 'Golden Cross' A crossover involving a security's short-term moving average (such as 15-day moving average) breaking above its long-term moving average (such as 50-day moving average) or resistance level. Investopedia explains 'Golden Cross' As long-term indicators carry more weight, the Golden Cross indicates a bull market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new support level in the rising market. Technicians might see this cross as a sign that the market has turned in favor of the stock.

Stocks on my Watchlist 5/5/14

1)Plug Power(PLUG)

This stock has seen a risen rise of almost 5000% year to date. With such a spike, it could be due for a correction. As of the writing of this blog, the stock closed closed at $4.06. It is a fuel company that specializes on hydrogen. Its website is http://www.plugpower.com/Home.

 

2)Ariad Pharmaceuticals

 

This company is rumored to be acquired by Jazz Pharmaceuticals for about $20 a share. The current PPS as of market close today was $7.63.

Candlesticks Analysis