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Is Apple’s Stock Going South or Can It Be Saved?

January 29, 2016
Park City, Utah Apple’s last quarter revenue of $75.9 Billion missed Wall Streets expectations along with the company’s own projections.
The company’s CEO Tim Cook, blames the world’s slowing economy and “the turbulent world around us,” making it more expensive for Apple to sell its products overseas. 
With oil prices falling at an all time low and the economy slowing around the globe, we are seeing negative conditions in places like Brazil where their “Real” is down almost 40% and Russia, where the “Ruble” is down more than 50%. 
While Apple’s management continues to point fingers and lay blame on the world’s economy, perhaps they should attack their own downfalls with a better strategy and look at what made them who they are in the first place.  It would appear that managements decisions, or lack their of, needs revamping as well.
Apple has been king of the technology mountain for a long time.  As a result, they have been sitting on an enormous amount of cash, over $205.7 billion since last reported in October of 2015.  Cash that could have been and should be used for acquisitions and expansion into diversified markets.  Instead, management has been resting its laurels of past successes and riding the proverbial wave of the past, which is now catching up to them.
Some would believe that expanding and diversifying their market share through acquisitions could save Apple from itself.  Many companies who are also “on top’ have remained so by looking for new business while keeping an eye on the competition.  Apple, an amazing technology company, could utilize their knowledge and technology by improving other sectors.  For example, why haven’t they made a bid for Tesla Motor Cars, a company that is on the cutting edge of the automobile industry?  Their combined technology labs could revolutionize the sector even more than Tesla has currently.
Maybe Tim Cook isn’t the visionary Apple needs to move forward.  Or maybe Apple should take a strategy out of Microsoft’s playbook where they just announced that they beat the street and analysts’ expectations, giving the stock a 7% gain for the day.  Remember a good offense is always a good defense.
Written by: Edward F. Panos
About Edward F. Panos:
Edward F. Panos has spent 19 years as a venture capitalist, business/fund consultant, and start-up entrepreneur; including eight years with his own firm Panos Industries, LLC.  His primary focus is investing in and building high growth, small-cap companies.  As a business consultant, he specializes in corporate structuring, corporate restructuring and earn outs, mergers and acquisitions, and corporate branding.  Mr. Panos has been the co-founder of several companies, including Bridges360, LLC. an alternative performance fund, which is focused on bridge financing for publicly traded companies, and Language Access Network, Inc., a video interpretation company focused on the medical industry.  Mr. Panos also has a passion for indie film and started Indie Film Funding, Inc., a crowd-funding platform focused on raising money for the indie movie industry through its website  Additionally, Mr. Panos is an avid philanthropist, dedicated to helping the less fortunate, homeless, and those addicted to drugs and alcohol.  Mr. Panos attended the University of Montana, is an alumni member of the Sigma Chi fraternal organization. He currently resides in Park City, Utah with his beautiful wife and his two daughters.
Edward Panos