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Wednesday, July 12, 2006

Most Widely Traded 48 Hour Clock: Baked Apple

24/7 Wall St. has begun coverage of the 36 most widely traded stocks, eighteen each from the NYSE and the NASDAQ. Most of these stocks trade over 50 million shares a week. This new feature will highlight each of the 36 stocks at least every 48 hours giving investors fresh infomation and perspective on the companies whose shares are most likely to move the broader markets.

Stocks: (SNE)(AAPL)(MSFT)

Apple recently got pushed two ways. Credit Suisse First Boston said the revenue for the company's fourth quarter would be $4.6 billion to $4.8 billion instead of the $4.9 billion that Wall Street expects.

At the same time, the brokerage said that Apple should come out with new products in the Fall and that the stock is, therefore, a bargain.

Microsoft's potential iPod killer is old news now. Apple suffers from deeper malaise.

The stock market is telling investors that the rapid growth of the iPod is over. Whether it is because companies like Micorosft or Sony are coming out with competing products of because the penetration of the iPod is so high that growth must slow, the case for buying the stock is no longer there.

Apple's revenue grew by 67% in the last fiscal year (ending Spetember 2005). Operating income grew five-fold. That is over. Period.

After rising to over $86, Apple's stock is falling fast, and that may not end until it is down 50% or more. That may not take long.

Douglas A. McIntyre can be reached at He does not own securities in that he writes about.

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