A Phenomenal Day for Apple Computer (AAPL) and My Portfolio

The blogosphere is full of the coverage of Apple Computers (AAPL) new iPhone and iTV. I am not going to add to that list by putting my own views here. You can find enough coverage elsewhere.

However, what was exciting from my perspective was the performance of Apple's share price. A 7.1% jump to an all time high of $92.57. I have shares as well as sold put option contracts. The net gain in portfolio has been over 2%. Yes, it could have been more but Apple still represents a small part of the portfolio. I took a hit on NVIDIA recently as well.

Given, this development I hope to close this month on a strong positive note. Keeping the finger crossed.

NVIDIA Corporation (NVDA) Stocks Down on Downgrades

Not only NVIDIA but it seems like the whole chip sector is down. AP reports

NEW YORK (AP) - Chip stocks fell hard in midday trading on Friday, spurred by a couple of downgrades and reduced financial forecasts.

On NVIDIA they write

Graphics chip maker Nvidia also took a beating after American Technology Research analyst Doug Freedman cut his rating on the stock to "Neutral" from "Buy."

I am not a financial analyst but this report does not make sense. NVIDIA is a key supplier not only to gaming hardware but to Apple Computer and other key computer manufacturers.

Granted that the stock has seen a run up in price in last several months. I will take it more as a consolidation than an outright signal to exit the investment.

I am holding on to my investment in NVIDIA for long haul.

Nokia (NOK) Rumored to Cut Off Best Buy (BBY) in China

Pacific Epoch has an interesting article

Nokia may stop providing handsets to US electronics retailer Best Buy's store in China, according to a rumor reported by National Business Daily. The report said that Best Buy was selling Nokia handsets at prices lower than the minimum limits set by Nokia. Best Buy is also facing a similar problem with Sony Ericsson, said the report. Best Buy denied rumor. Best Buy opened its first store in China on December 28, 2006.

I am not invested in Best Buy (BBY) but do have investments in Nokia (NOK). My take this is Best Buy's loss. Nokia is one of the most popular mobile phone in Asia (based on my unofficial survey - read people watching and window shopping). However, it would be best if they could leverage each others synergies.

Apple Computer (AAPL) Sales at $8 Billion for Holiday Quarter

Just saw this post from seekingalpha

The bottom line: I was a piker in my previous prediction of 20 million iPods and $7 billion in sales for Apple's holiday quarter. Assuming that these numbers are somewhat in line, Apple may see a nearly $8 billion holiday quarter, with $4 billion of that revenue coming from the sales of 23 million iPods.

I do agree with his analysis of sales. Needless to say this works well for my Apple Computer (AAPL) investment.

New Trade in NVIDIA Corporation (NVDA)

In recent weeks NVIDIA Corporation (NVDA) shares have taken a hit. Even today when the market overall is moving up NVDA is going in opposite direction.

Searching through the web I can't seem to find a good reason why this is the case. So given that I like this company I am opening a new trade in NVDA. This one is a bit risky but profit potential is high. Worth taking the rick I guess.

Sold 5 put options with January 2007 expiration date.

Nokia Corporation (NOK) Bluetooth Troubles

Engadget reports that Nokia, Samsung and Panasonic could be in trouble with patent infringement. Technology involved is Bluetooth.

University of Washington scientist Edwin Suominen apparently obtained a patent in 1999 for a "simplified high-frequency broadband tuner and tuning method," which he now claims is infringed upon by the free Bluetooth standard developed by Ericsson and pals in the 90s.

So, how does it affect my position in Nokia?

I doubt if it will negatively impact the Nokia share prices. If Nokia did violate the patent law then so did just about every other company in this space. If one of them have to pay royalty then so would every other company. On a relative basis I don't think it makes a difference.

Just my opinion and I am not a lawyer. However, I am holding on to my NOK shares.

New Trade in JOY Global (JOYG)

First day of trading for 2007 and JOY Global (JOYG) is down. I can't seem to find the reason why. To me this company is performing well. They just had a great quarter. Oh well, this is why its called Wall Street.

I just opened a new trade in JOYG by selling put options with Feb 2007 expiration.

Apple Computer (AAPL) Beats Top End Retailers

One would assume that a top end retailers such as Neiman Marcus and Tiffany would have a much higher sales per square foot than Apple Computer (AAPL). Apparently not! Even the top electronics retailers such as Best Buy (BBY) have sales much lower than Apple.

Way to go Apple. Feels good to own its shares.

Nov and Dec 2006 - A Year in Review

Wish you a very happy new year !!!

Time flies fast. Its been almost 3 months since I started this blog. It has been a fantastic experience. You have made me a lot more disciplined in investing and trading activities.

So, how did I do in December?
The account now stand at $104,791.91. A 4.79% return in two months. November was a better month with 3.52% return. The return for December are not so great. But still a respectable 1.23%.

The results for December would have been a whole lot better if not for Apple Computer (AAPL) not taking a serious price hit in second half of December. I am still very positive on Apple so no plans to exit it any time soon.

The 4.79% return on investment for this portfolio compares well with key market indicators. For October and November 2006

• DJIA 3.17%
• S&P 500 2.93%
• NASDAQ 2.05%

So it seems like I have managed to better than popular market indicators. Hope to repeat that in 2007.