Apple Stock Follow Up

I am extremely bullish on Apple, Inc. stock (AAPL).  After holding it for a better part until it reached near $200 per share.  Then I watched the stock sink to below $120 for no reason, other than fund managers talking about a high evaluation.  I thought that evaluation was well deserved because Apple at the time was the largest tech company that had it’s act together.  They still do.

I talked about Apple back in February, when I entered Clients into it’s stock and options.  After a decent and quick gain of around 20%+ I sold the stock and options too were sold with 149% return.  Then I watched Apple gain another $30 dollars after a small correction.  That part I didn’t anticipate.  Well, you cannot win them all.  In this case I just waited for the next correction.

We’re just at the end of that correction.  I am back in to Apple for my Clients with mainly options.  I predict that Apple shares will nearly double (Yes, DOUBLE!) from where they are now.  However, I am only counting on a $50 to $70 gain in the stock, when I will be content with results and ‘cash out’.

My reasons for Loading Up on Apple…

The reasons for my prediction are straight forward:

• The effect that the iPod had on Apple, where a new generation of people started to realize the ease of use Apple products represent, are now about to be realized by iPhone users who will then adopt more Apple products for the enterprise.  The so called “Halo” effect is now carving our ripples in the office area.
• The same effect is forcing corporations to purchase more and more Apple computers for the offices.  Just as Apple computers are more prevenlent in the educational market, now they are making inroads to the commercial market.
• Lastly, there is the iPhone itself.  From my perspective, the phone part is minimal.  The real beauty of the ‘device’ is that it is a hand-held computer that will become a “hand-held cash cow” for Apple.  Once you enter credit card information, everything from your favorite music to movies and games to applications will be at your fingertips.

Apple for a few years has grown like a start-up in sales and stock price.  That trend will continue as the new line up of products via the iPhone start to capture the marketplace.  And that’s just the new stuff.  The old, proven sales from Macs to music will continue to add revenue to Apple.  The trends in this case are very strong and will keep adding to the bottom line of Apple for several years.  It’s a nice time to add a few Apples to your portfolio!

Carpe Diem,
Rich Sage