Here’s Why Apple Investors are Moving to iSell Mode

E = Equity to Debt Ratio Is Strong

The debt-to-equity ratio and balance sheet for Apple are perfect. That’s a rarity.

Debt-To-Equity

Cash

Long-Term Debt

AAPL

0.00

$29.13 Billion

$0

GOOG

0.09

$45.72 Billion

$2.99 Billion

RIMM

0.00

$2.73 Billion

$0

 

T = Technicals on the Stock Chart Are Weakening

Apple has had an amazing performance over the past three years. It has outperformed Google (NASDAQ:GOOG) by a wide margin. It has also outperformed Research In Motion Limited (NASDAQ:RIMM), but that should be expected. That said, one of the biggest scares for Apple investors should be the breakdown on the technical side. Many traders rely heavily on technical indicators, and Apple is now looking bearish. It’s a classic fight between TA and fundamentals. In most cases, TA will win for the short to medium term, and fundamentals will win out in the end.  

1 Month

Year-To-Date

1 Year

3 Year

AAPL

-6.52%

-8.78%

14.59%

147.70%

GOOG

3.61%

4.82%

26.63%

34.81%

RIMM

61.78%

48.69%

13.43%

-71.38%

 

At $461.90, Apple is currently trading below all its averages.      

50-Day SMA

536.46

100-Day SMA

593.54

200-Day SMA

593.83

 

E = Earnings Have Been Phenomenal

If you want to look at a near-perfect picture for earnings and revenue growth on an annual basis, then look at Apple.

2008

2009

2010

2011

2012

Revenue ($)in billions

37.49

42.90

65.22

108.25

156.51

Diluted EPS ($)

6.78

9.08

15.15

27.68

44.15

 

We already know what happened this quarter. Now let’s take a look at previous quarters.

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in billions

28.27

46.33

39.19

35.02

35.97

Diluted EPS ($)

7.06

13.87

12.30

9.32

8.66