Two Stocks to watch

May 18th 2015, Second PostWelcome back. Two Items of interest. We’re told to get in the way of movement. That is an old real estate adage, but it applies to many other forms of investment. You’ll see this come alive in a moment. 1. I have a lot of respect for Karl Icahn (and Aretha Franklin), and as a billionaire investor he deserves to be listened to. He said that he thinks Apple Computer (AAPL) should be at $240 a share. One never knows what time frame this includes—usually statements like this have a one year time frame. I think it was he who just a few months ago said Apple was a $200 stock. Anyway, I think if Apple were at $200 or $240 right now, it would not seem unusual or out of place. 2. Jim Cramer (CNBC—Fast Money), always has some worthwhile information. He recently weighed in on Netflix (NFLX). I’ll write some of what he said here. There was an article stating some facts about Netflix and China. a. There are 400 million households in China. They love (will love) Netflix. b. For Netflix and others it’s about increasing their subscriber base—meaning actual net profits seem to come in in second place. Netflix now has 61,000,000 subscribers worldwide and it is growing fast. c. In China, their favorite show is “House of Cards.” I don’t get this, because that is an original Netflix entrée and this statement assumes they are already watching this show. Maybe they know how to hack everything. d. The youth are involved everywhere, using their mobile units and pads (pennies a day), and frugal (read that cheap), they have their favorites, including “Orange is the New Black.” Okay, here’s what Jim Cramer said: “I don’t like to buy a stock when it is running, but I am standing by my long-running recommendation. Sure, on earnings, it’s expensive, but you can’t let traditional earnings analysis constrain the opportunities. Some stocks should be viewed as a function of the total addressable market vs. the cost of product. And this one is cheap on those two bases.” I don’t get the grammar in some of this, but I think the point is clear. And again, the stock split—which in this case is a powerful forklift that may do some heavy lifting—is just around the corner. MAY I PUT IN A PLUG FOR THE WIN/TDT SERVICE. One the site, I give much more than this—including prices, timing of trades, and a host of other tradable news and views. It’s all for $22 a month, and that gets you thousands of dollars of trades you can use now. Don’t delay.

Stock MarketWade Cook