Last month, Apple (AAPL) seemed a good buy because its yield was attracting income buyers (Apple: Analytical Shift Makes Stock A Buy). Now, not only is the yield still attractive, but Apple’s investor antipathy and diminished growth expectations are added reasons to buy – i.e., to be optimistic about AAPL as a stock investment.

Here’s how to view Apple’s stock value and growth prospects…

This article is published on SeekingAlpha.com

My last analysis of Apple (Apple: Last Year I Said Sell — Buy Now?) was downbeat. Now I believe Apple looks like a good buy.

So what’s changed? Basically, the perspective we should adopt in evaluating the “new” Apple. Apple’s 45% decline from its $705 high only seven months ago contains two major adjustments:

First, the removal of the over-optimism that drove AAPL dramatically up to that high
Second, the reduction in fundamental valuation reflecting reduced growth forecasts

But, there is another adjustment in the works that converts those negative dynamics into a positive view: The stock is moving away from being a disappointing growth investment and becoming a desirable income one. As a result, AAPL looks to have once again entered “buy” territory.

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In obedience to the mantra, “Don’t fight the Fed,” investors have remained committed to the process of Fed meets, Fed announces, markets react accordingly. Strongly supporting that belief today is the past four years’ results. Longevity and repetition have convinced investors and even most of the Fed’s committee members that this wonderful situation is a basic truth. Moreover, most also believe that the Fed’s easy money policy produces a win-win situation for everyone.

However, current conditions and a deeper analysis show both the fallacy and danger of acting on this mantra. The Fed’s easy money policy now is looking more and more like an unwise investment foundation. Also, there is growing commentary that questions the “omni-beneficial” label.

Even Wall Street is shifting from being mostly supportive of the Fed’s easy money policies to being less enthusiastic, even a bit contrarian. These reasoned views (not anti-Fed rhetoric) are warning signs that the Fed’s policies could be in for more questions, skepticism, even criticism. Therefore, we should drop the “Don’t fight the Fed” investment strategy and begin to think about ways to Fed-proof our portfolios.

This article is published on SeekingAlpha.com

In articles last year, I attributed Apple’s heady rise to unrealistic growth expectations and investor over-optimism. Has Apple’s (AAPL) 40% decline wiped out those excesses? If so, is AAPL once again an attractive investment? The short answers are: “Yes” and “No.”

Answering the “Buy now?” question requires evaluating Apple from seven viewpoints. Here is the list along with quick summaries of my conclusions…

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For many investors, the past few years have proven that intermediate- to long-term bonds are a great place to invest. Short-term bonds and money market securities have seemingly played the role of spoiler, offering no clear benefits and dragging down overall returns. Hence, there’s been an understandable allocation reduction.

The best example is money market securities, the obvious loser. Their yield been near 0%, and they’ve had none of bonds’ price gains. So, why on earth would we want to put assets into such a poor investment?

This article is published on SeekingAlpha.com

For four years, since March 9, 2009, I’ve actively invested in the U.S. stock market and written about the benefits of doing so. Now, however, that has changed. I’ve just sold (last Thursday, 2/21) all but one holding and gone to cash.

While others also are worrying about the stock market (see excellent article at end of this write-up), my view comes from a unique source: my current strategy of focusing on growth stocks making new highs, an approach I have used since 1964. Because these stocks often lead in a bull market, abnormal action can provide early warning signals, and that’s what I believe has happened.

This article is published on SeekingAlpha.com

Prior to Friday’s (2/22) stock market open, Cyberonics (CYBX) reported $0.47 EPS for its fiscal 3rd quarter 2013, up 38% from one year ago, and almost 24% above estimated earnings. Revenues were almost $63 million, up 15% from last year and 3.5% better than expected. Today the stock rose 5.2% from yesterday’s $44.33 close.

However, trading was volatile, ranging from its opening up to $48, down to $43.53, then back up to close at $46.65. That erratic behavior raises the question of “Now what?”

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Investing success has many routes, but none are as good at regularly reducing risk and increasing potential return than selecting a “neglected” growth stock. These wallflowers need not be ugly, but can be the hidden gem that so many want to find, with the company succeeding and the stock languishing. Cyberonics (CYBX) appears to be one of those currently, with the company flashing all the desirable growth signs, while the stock wallows in investor angst about a recent short seller inspired sell-off.

Cyberonics looks like a growth stock should…

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