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Friday Email: 18 January 2013

Every Friday morning our lead analyst Mark Riding sends out his weekly run-down and upcoming events in the investor calendar, like this one:

The markets have been strong this week with a very good showing in the U.S on Thursday spilling over to other markets.

At the moment the bulls are in charge and the debt showdown that is to come has been sidelined somewhat. The markets, having seen the brinkmanship on too many occasions have become complacent and now expect a resolution.

Even if there is a resolution, is the U.S carrying too large a debt burden and can the ceiling be raised indefinitely. The most interesting stock of the week for me has been Apple which has dominated the headlines and has fallen 30% since its September high when everyone was talking about $1000 a share and the first trillion dollar stock.

In my view fears have been overblown and the numbers next Wednesday should show that there is still mileage in Apple yet. A bounce up to $600 is possible in a matter of weeks. It was trading on a P/E of under 10 before the bounce yesterday.

The yield is 2.5% at the $500 level and the last quarter will have once again seen very strong cash generation to take the cash pile over $120 billion, a quarter of the market cap. Strip out the cash and it really is cheap.

The week ahead is quiet with only Unilever, Chemring and Aberforth Smaller companies trust reporting numbers.

There will also be trading statements that will be detailed in the Saturday daily comment. At around about 10am today, I will be posting my nap for 2013/4 on the trading research point site. It is a non-dividend paying stock. I will send out an email immediately after posting.

This email was originally sent on Friday 18 January 2013

The Friday email is delivered to over 20,000 subscriber’s every week, and remains a widely read run-down of recent events and what investors can expect in the week ahead written by our chief analyst Mark Riding.

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