The Time Is Ripe for Apple

On Tuesday morning, Netflix (NFLX) reported quarterly numbers that positively surprised analysts. The shares jumped by as much as 24% on the news that company had gained 2 million new customers in the first quarter of 2013. Most analysts expected 1.8 million new customers. A year ago today, Netflix shares were trading at $52. This morning, the  shares were trading above $215 in the premarket -- a new 52-week high. What's amazing about Netflix is that it has managed to achieve that rarefied feat in business: execute a successful, technology company turnaround.

The technology industry today is littered with names of companies hoping for a little bit of that Netflix magic. Many value investors are betting on turnarounds for Hewlett Packard (HPQ) and Dell (DELL). For years both companies have continued to struggle with the process of reinventing themselves. For what it's worth, both business appear to be undervalued relative to their cash flows and future growth potential but Mr. Market clearly wants to see that potential not just hear about it....396 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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