Wednesday, September 19, 2012

Stay away from Apple Inc. (AAPL)


Apple Inc.  (AAPL) weekly chart
1) Long term parabolic rise
2) Good (or call it great news) ALREADY priced in !!!!
3) Is that a left shoulder I see ? (Head and Shoulder pattern)

3 comments:

Anonymous said...

technically, i agree about the chart looking parametric, but how in the world did aapl ever get this fundamentally undervalued relative to growth to begin with? continuous double digit growth for several years now and a 16.5 p/e as it is hitting ath? 0.70 peg and none of this includes the 120 billion now in cash. if initial iphone 5 sales are any early indication, we could be looking $18-20 eps in 4th quarter.

for a relative comparison, amzn with neg eps growth has a p/e~320 and goog with mediocre growth p/e~22?

Anonymous said...

yes. aapl is extremely undervalued relative to it's growth and earnings, but it has been that for a while. p/e, fwd p/e, peg, etc are now less than the sp avg and the dow avg which it consistantly outperforms 5-7x on y/y growth, etc.

problem is retail is buying waaay to many calls in the options market (680, 700, 750, 800, etc). october unbalance was even worse than normal (due to the expected iPhone release). without any puts to balance there was no way the options writers would let those pay out. once all those calls expire worthless, it will move up very, very fast (like magic). any day now. how they get people sell a company this undervalued just few months before get to report the most profitable quarter in history truly amazes me though... ;)

Anonymous said...

now nearly all the massive oct call options worthless... now we can sprinkle "pixie dust" and move up, like magic... :)