Why Worry About “Cr-Apple” When a World of Profits Is Waiting for You?

by Sean Brodrick on January 24, 2013

Here’s What YOU Should Be Buying Right Now

The U.S. stock market was deeply disappointed by earnings news from tech leader Apple.  Earnings were downright terrible. Sales of Mac computers are down 21% year over year. Apple is cannibalizing its own sales with its nifty (and cheap) iPads. Heck, I love my iPad, but you can only sell so many of those, and Apple is making less on every sale that is a substitution for its higher-margin Mac computers. And iPhone sales disappointed as well. Apple’s days of mega-growth are OVER. This news cast a pall of gloom over U.S. markets.

crapple earnings

But here’s what you may not know – there are two groups of investors who don’t give a tinker’s cuss about Apple – or “Crapple” as it’s being called on Wall Street now. And those investors stand to make bushels of money.

Group 1: International investors.  The BRICs – Brazil, Russia, India, China – are back, baby. Growth is returning to the emerging markets.  China keeps pumping out good news. Just last night, news hit that China’s manufacturing is expanding at the fastest rate in two years. Fears of a a “hard landing” in China are fading into the distance.

And it’s not just China. Emerging markets in general are blasting off.  Take a look at this chart comparing the performance of the iShares MSCI Emerging Markets (EEM: 42.02 +0.02 +0.05%) and Apple (AAPL: 565.55 -0.88 -0.16%) over the past four months …

eem

(Updated chart)

Lesson: You should be investing overseas.  But emerging markets aren’t the only group of winners.

Group #2: Companies that Profit From America’s New Energy Revolution.  American oil production is growing at the fastest pace since the 19th Century. Nat-gas production is booming, too. There are companies poised to make a fortune off this new, big and strong trend.

Some of these companies are overseas … and plenty are right here at home.  Take a look at this chart comparing the performance of the SPDR S&P Oil & Gas Exploration & Production Index (XOP: 66.20 +0.13 +0.20%) and Apple …

xop

(Updated chart)

As you can see, oil services stocks are leaving AAPL in the dust. This trend is a strong one, and should continue.  Interestingly, XOP is just one of the picks that I gave subscribers in my Post Election Profits Guide on November 6. And EVERY pick recommended in the Post Election Profit Guide is a winner!

post-election2

 

I’ve covered up the names of all the positions but XOP because this is still an active report.  Subscribers who got it know what those picks are. Not bad for picks that were just made in November, eh? We already took one round of gains, and there should be more to come.

Lesson here: Don’t Dwell on Yesterday’s Losers – Focus on Tomorrow’s Winners

If you bought Apple anytime in the past four months, that’s a shame.  We can’t change that. But you can invest in the winners of tomorrow. Both overseas … and at home. Just don’t get frozen into indecision.

Apple’s boom times may be over. But there’s a big, juicy, bushel of profits just waiting for you to take a bite out of it.

{ 12 comments… read them below or add one }

kbeck02 January 24, 2013 at 10:14 pm

“’Crapple’ as it’s being called on Wall Street”…if that isn’t the pot calling the kettle black, I don’t know what is!

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Gil Mirkovic January 26, 2013 at 9:52 am

Indeed kbeck02, indeed.

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jrj90620 January 26, 2013 at 12:58 pm

I’m not sure there’s that much wrong with Apple.Seems like a lot of companies are trying to imitate them.The stock got too high,due to too much optimism.Nothing Apple could do about that.Just like many people were so optimistic on Obama,after his first election.I predicted his peak popularity, was the day he got elected,and it proved true.I don’t know whether Apple will come up with more revolutionary stuff or ever dominate,in the future,like they did in 2012. I’m not a tech investor,so ,I’ll just watch from the sidelines.

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G Soave January 26, 2013 at 1:44 pm

I think you are wrong! Apple will surprise many still, with their future numbers and you should look at this moment as an opportunity to buy, not go to China where double and triple sets of books are kept just to amuse foreigners…
I agree with you on investing in EEM.

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OTTO January 26, 2013 at 3:07 pm

I INVEST HEAVILY IN OIL SERVICES NOW, BUT THEY ARE TOPPING OUT.
PLEASE ADVISE

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OTTO January 26, 2013 at 3:10 pm

OIL IS MY BIGGEST INVESTMENT AREA
HOW MUCH MORE CAN IT GO

I

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JRK January 26, 2013 at 4:35 pm

Such baloney. The chart of Apple’s growth chart is showing continuous growth, whereas this blog is suggesting to unsophisticated minds that it means that the company is going down. Think if it was an honest line graph; it would continue and continue upwards, but at different rates. so sad. these online discussions are similar to political blogs, where nonsense prevails.

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Scott January 28, 2013 at 1:36 pm

amen

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Robert February 3, 2013 at 6:10 am

Amen. Amen

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Paul Tyler January 27, 2013 at 1:25 pm

Excellent . . .
Some independent and retail traders haven’t awakened to the consequences of Apple’s Price slide.
Some thought there would be a recovery during the seasonal holidays during December 2012.
And, the same unfortunates, are riding the stock downhill while too afraid to jump off.
Apple will be one more historical event in the stock market for all to remember.
I heard it first from Sean . . . “Crapple.” Totally, apropos.
My best,
Paul Tyler

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Paul Tyler January 27, 2013 at 1:27 pm

Excellent . . .
Some independent and retail traders haven’t awakened to the consequences of Apple’s Price slide.
Some thought there would be a recovery during the seasonal holidays during December 2012.
And, the same unfortunates, are riding the stock downhill while too afraid to jump off.
Apple will be one more historical event in the stock market for all to remember.
I heard it first from Sean . . . “Crapple.” Totally, apropos.
My best,
Paul Tyler

Reply

JB January 27, 2013 at 1:57 pm

Your headline was aapl sends markets reeling!! Really?? Dow up 300 for the week, even NAS was up 30 points. All you heard for 2 years was how aapl was pulling the market up with it every week , now apparently the market doesn’t need aapl, everyone better pay attention here!!

Reply

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