Apple Shares Bounce Again
Apple Inc (AAPL) shares are up 2% today, trying hard to get to the $550 level. Everyday that passes the 52 week range improves for Apple as it moves further away from its 2012 $700 price. Can the stock return to greatness?
The Architect at TrendsandReturns.com had the right idea of bottom fishers finally snapping up AAPL thanks to its recent decline and attractive P/E:
Since the start of the year Apple (AAPL) is down 5% and 6 to 7% since the China Mobile (CHL) deal was announced. Thanks to the decline I believe buyers will come out and snap up Apple shares.
Apple's P/E is down to 13.45. Consider that Netflix (NFLX) has a P/E of 279, Facebook (FB) at 121, and Twitter (TWTR) at WTF. A better comparison for Apple would be Google (GOOG) who's PE clocks in at 32.5. P/E or Price-to-Earnings ratio may not get the attention it used to but for a lot of big and smart money it does. My speculation on a reduced P/E is going to entice investors to go long on Apple before the Q1 earnings are delivered on Jan 27th.
However AAPL is destined to be range bound until we hear earnings on Jan 27th. Apple needs a good conference call to move past the $550 then $575 range. Despite the amazing P/E Wall Street will not move AAPL shares until it believes there is respectable earnings growth.
The best analysis of AAPL's stock was done by Jim Cramer yesterday (see below). Long term the analyst Jim is talking up has a TP of $792 on AAPL:
Bottom line: AAPL may be at a bottom but until we earnings at the end of the month the stock is range bound.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- An Insufferable Beer Crisis Hits California | ZeroHedge
- The Trillion Dollar Question: What Happens When Quantitative Easing Ends? | Financial Sense
- Will Crashing Commodities Crash the Stock Market? | Financial Sense
- Weekend Top 100 | iBankCoin.com
- Crosscurrents “R” Us | Financial Sense
- Inside the Market's Mind: Investment’s Hard Problem...and Why It Can’t Be [Quantitatively] Eased | Financial Sense
- Pole-Dancing And/Or Happy Women Should Avoid Turkey, Deputy PM | ZeroHedge
The most relevant financial news and articles from the Internets
- MobileIron, A Hot Enterprise Mobile Company, Beats Earnings And Its Stock Goes Up 15% After Hours (... | Business Insider
- Microsoft Just Nabbed A Mobile Industry Guru For Its Board Of Directors (MSFT) | Business Insider
- BILLIONAIRE HEDGE FUND MANAGER: Of All The Things That Are Likely, Nothing Is... | Business Insider
- Why Glu Mobile Stock Is Tanking in Pre-Market Trading Today | TheStreet.com
- Detroit Tigers Land David Price In Blockbuster Trade | Business Insider
- The NFL's Drug Testing Policy Is Completely Ridiculous | Business Insider
- Whole Foods Tumbles After Sales Miss (WFM) | Business Insider