Timelessblur said:the flags that have raise my red flags are
how much has the stock increased over the past year? several 100% I believe
How much has the proffic increase over the past year? again a few 100%
How much as gross income increase? I think it under 20% but dont hold me to 2 it. but I know it no one keeping pass with the profic increase.
Those are where my red flags are coming up. It seems well to good to be true 9 time out of 10 when something is 2 good to be true general it is.
Except you have to look at that starting point of last year. There are many that say that the stock was way undervalued at that time. There was a time not so long ago that the stock was worth LESS than the cash they had in the bank. Meaning you could buy all the stock, take the money out of the bank, leave the rest and still make a profit.
But stocks are usually valued by future earnings potential. For instance Toyota is valued more than GM which is a much larger company.
The only thing I would worry about with apple is that day when everyone has an iPod. Maybe they were smart to make the batteries hard to service. But I think there is a lot of room for growth in CPU sales. Almost everyone I know with a mac would be getting an upgrade if they bought a mini.