Apple Inc. (NASDAQ:AAPL) To Build A $10 Billion LCD Factory

Apple Inc. (NASDAQ:AAPL) To Build A $10 Billion LCD Factory

Apple Inc. (NASDAQ:AAPL) To Build A $10 Billion LCD Factory

  • Apple supplier Foxconn, the world’s largest contract electronics manufacturer, revealed plans today to build a new facility for producing LCD panels in Wisconsin. The news was announced at an event this evening with Foxconn chief Terry Gou and US President Donald Trump, who has aggressively pressured both domestic and foreign corporations to invest in the US. (He has also often taken credit for such investments even when they predated his administration.) Trump was joined at the event by Wisconsin Governor Scott Walker.
  • Foxconn plans to spend $10 billion over the course of the next three years on the 20,000-square-foot plant, which will employ at least 3,000 employees to start. The Trump administration says Foxconn’s investment could eventually help employ as many as 13,000 people, with potential future facilities in places like Illinois, Indiana, and Michigan.
  • The LCD panels produced at the plant are, to start, for TV maker Sharp. Foxconn’s parent company, Hon Hai, owns a controlling stake in Sharp, which it purchased last year for $3.5 billion. Given that the US is Sharp’s largest market, it makes sense that Foxconn would want to expand manufacturing in the market to cut down on shipping costs.
  • Apple and hearing assistance company Cochlear have teamed up to launch the first iPhone-compatible cochlear implant sound processor. The processor will accompany an implant. (The processor isn’t what’s implanted inside the body; it’s what you see outside and what gathers audio to then send to the implant.)

Apple Inc. (Apple) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. The Company also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. The Company distributes its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In February 2012, the Company acquired app-search engine Chomp.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are ranging.

The projected upper bound is: 158.64.

The projected lower bound is: 148.19.

The projected closing price is: 153.42.

APPLE INC closed up 0.720 at 153.460. Volume was 39% below average (neutral) and Bollinger Bands were 33% wider than normal.

Open          High             Low            Close           Volume
153.350      153.930      153.060      153.460      15,780,951

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period         50-period        200-period
Close:                       150.64              149.12               132.89
Volatility:                10                      22                      20
Volume:                  20,754,104      26,316,898      28,277,916

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

APPLE INC is currently 15.5% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 7 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 86.0669. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 68.14. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 48 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 122.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 12 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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