The 'BANK of APPLE'…Why Apple should buy Mastercard, Visa and/or American Express

• Posted by Howard
• on December 28th, 2007

I had not written much about Apple in the last few months until yesterday. Fred sent me an email with Bob’s great post and words and it got me inspired to bang out Apple thoughts all day.

It is weird that a stock with so much good news baked in and so much love from the media, blogging and analyst world could keep rising. That should not happen. But it does and could easily continue.

It is about CATALYSTS. All great trend stocks have them. There are subtle ones, big ones and multiple ones. Apple has them all.

I am no rookie though – nothing goes in a straight line forever. Today there was a $600 target slapped on the stock. All price targets are stupid and this is no different. The stock is attracting too many stupid headline grabbers and that means chasing could cause you pain right here. Money management is not something you can ignore, even with Apple.

The amount of product, distribution, PR, media and sales leverage Apple has created is astounding. It’s impossible to stay on top of it. Or so I thought. You should get used to checking in on Apple Investor news. It is and Apple Meme . It updates all the time.

Not much more can be said about the Apple stores here or anywhere. The New York Times has a great article capturing the real essence of the experience . At 203 stores and climbing just sit tight.

When the inevitable shitkicking comes in the stock (it has to no?), take a look at this chart comparing Apple and Microsoft and consider yourself lucky to get in at a 30-40 percent decline.

Apple may be expensive, but it is growing so much faster than Microsoft could hope. Apple is already at $24 billion in sales with no corporate penetration (other than execs home machines). No Europeans or Asians carry iMacs. No Halo effects yet overseas. They don’t need it yet. It’s coming though. Microsoft for all its investments and cash and monoply is at $54 billion in sales. In relative terms, give me Apple all day long as a relative trade.

Nike, Starbucks, Disney, and Old Media partnerships can’t uncool Apple. Apple’s cool leaks onto their uncoolness. More uncool media will climb aboard in 2008. The only area that they have not really attacked is Micropayments. They will likely take their sweet time, but could speed up the process with a financial acquisition. Forbes looks at the beginnings of this with Starbucks and the Patent Office .

I think Apple should buy Mastercard ($28 billion) or American Express, maybe even VISA to just speed it up for me.

The Bank of Apple has a nice ring to it. Get into banking while all the others are blowing up. Loan money to homeowners to buy homes loaded with Mac Products so you can sell them content. Set up a brokerage house to just buy Apple stock on dips…you get the drift.

Just don’t buy an airline. Too tough to cool up…just yet.

Disclosure – Long Apple

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus