iPhone 6 components

Hi Saul et al,

AAPL should have a mega-hit with a larger screen iPhone this Fall. I’m not up on the components in iPhones. Do you see some stocks that should lift off when the iPhone 6 is introduced?

Paul

AAPL should have a mega-hit with a larger screen iPhone this Fall. I’m not up on the components in iPhones. Do you see some stocks that should lift off when the iPhone 6 is introduced?

Hi Paul.

Stock pricing is usually based on future events. So I would assume that the if a stock is going to lift off based on iphone sales, that lift off has already occurred. The cliche is “buy on the rumor sell on the news.”

Jeb

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The stock I have been following that is rumored to be in the next iPhone is GTAT. By mostly dumb luck I started following them early last year and had grabbed a small starter position long before the apple rumors surfaced. I was mainly looking at solar companies and this one seemed like it could be an interesting turn around story. There has been very strong price appreciation so far this year and its also been very volatile.

Historically they’ve been a supplier to solar manufacturers which has a very boom/bust business cycle. Over the last year they’ve patented some very interesting technologies related to sapphire production and Apple announced a huge investment with them and a plant in Arizona. Supposedly GTAT will replace the gorilla glass screen currently in the iPhone with a virtually indestructible sapphire screen.

This seeking alpha article is a couple months old but it lays out the different ways that the company is trying to broaden their business. The Hyperion piece is especially interesting to me as anything that lowers the cost of solar panels should help Solar City, one of my favorite companies.

http://seekingalpha.com/article/2105783-gt-advanced-technolo…

The company currently isn’t making a profit though that is expected to change soon. I’ve been reading the quarterly reports for awhile now and I’ve been impressed with the management team and how they lay out where they want the company to go. That being said I consider it one of the riskier investments I have.

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