“Management’s 36 percent margin guidance is 870 basis points less than the 44.7 percent margin reported in the first quarter of 2012, making EPS growth difficult to achieve.
CHEAT SHEET Analysis: Catalysts for a Stock’s Movement
One of the core components of our CHEAT SHEET investing framework focuses on the factors that could affect a company’s stock. While this analysis will do Apple, whose stock has been struggling over the past two months, no favor, the bigger danger lies in the predictions coming true. Apple needs a good quarter to quell the mass investor fear that seems to have extinguished the stock’s otherwise good year. Apple is up almost 26 percent year-to-date, but has fallen more than 27 percent since its highs of mid-September. According to Sammy, Apple’s next three to five years will depend on its ability to introduce new product categories.
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