Managerial Finance Assignment: Analyze Apple INC.

Managerial Finance
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The stock chosen for study is of Apple Inc. due to a number of reasons. Apple Inc is a corporate giant. Its track record is self explanatory, having specialized in a wide range of accessories, most of which are pacesetters in the market. The company’s positive milestones are also self evident, and the steady growth in its stock prices is testimony of this growth. The Company has been the leading light in technological innovations over the past decade and also with one of the largest market cap. Its growth is also hoped not to decelerate over the next few years. A study of its stocks would therefore provide a clearer view of the interplay of the market forces and how they affect the stock value.
According to Jeff Reeves, the Apple stock is the best investment option at the moment. This is due to the fact that over the past few months of 2015, it has fallen by a massive 24%.This presents a massive opportunity for any sharp, prospective investor to ‘make hay while the sun shines’ by investing in the stock on the cheap. There is a high likelihood that the value of the stock will rise in 2016, and this would present that window of opportunity to invest in (Reeves, 2015). The other reasons for investing in the stock are the high capital returns experienced from it. Additionally, the stocks have been historically stable, always standing in strong amid the pressure posed by the regular market hits on Wall Street. It is a safer bet.
According to Taulli however, investing in the Apple stock isn’t a good investment decision due to a number of reasons .First, the company’s falling value has been due to increased competition from new competitors, especially in the Chinese market where it had placed a stranglehold on. Companies such as Xiaomi are fast-rising and this is likely to pose further threat to the value of Apple stocks as of now. There is actually no guarantee that the stock value will rebound. Secondly, some of its products are not selling anymore. For example, the blackberry and the watch don’t seem like very viable options and additions to the stock value (Taulli, 2015).It would therefore be a risky venture, be it in the long-term or short-term.
When compared to other stocks, investment in Apple is a higher risk compared to other stocks. Actually, as a; long-term investment, it would be more advisable to invest in indices such as NASDAQ than ...