Buy Apple...Stock That Is...

So, if you've been following along with me for a bit you'll know that I have on occasion, proposed a few stock picks.

Here are the picks and results to date:

Ford [F] on 2/24/10--Up 30% since purchase...
(vs. +19% for DJIA, +23% for NASDAQ and +19% for S&P 500)

Yoox [YOOX] on 12/2/10--Up 54% since purchase...
(vs. +11% for DJIA, +10% for NASDAQ and +10% for S&P 500)

Orbital [ORB] on 12/2/10--up 8% since purchase...
(vs. +11% for DJIA, +10% for NASDAQ and +10% for S&P 500)

So all in all, not bad and well outpacing the major averages.

Of course this is a small sample so it likely could be just luck and good timing and nothing to do with anything except throwing darts at a board in a time that the market has performed well.

Never the less...here is my new purchase/pick.  Apple [AAPL].  Why?  and Why now?  Simply because the stock is relatively cheap (P/E ratios equal to Google and Adobe and less than hosts of smaller, high growth companies), generates cash like almost no one else, possesses an unparalleled image, could see a stock split in the near future and is constantly bringing new products and ideas to the market.

Apple is priced like a company in a newly mature phase.  I believe it is only in the beginning of its growth with products and services not likely to be replaced or substituted for.  As the desktop and laptops die, so Apple picks up more and more share.  The iPhone is ubiquitous and continually releasing new versions of it will feed an ongoing revenue stream at a rate faster and perhaps greater than the good old "Windows" updates from Microsoft.  Apple does stand to be hurt in the changeover from "iPods" and the like to cloud storage of media and that is where they could loose an edge.

But with Q1 earnings coming out today, Apple on a roll, the economy picking up a tad bit of traction, and the next iPhone due in September, I'm betting for a significantly positive one year return.  As always...Buy early and buy often...