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  • See You All At $ 519.18 Within Next Week! (Bring Your Cash) 2 comments
    May 7, 2012 1:33 PM | about stocks: AAPL

    I just did a back of the envelope, and noted these facts: the February to April rally was just the kind of thing that Andy Zaky was talking about a year or so ago! He was saying that the compression of p/e we were experiencing quarter after quarter, would reach a point where the piston (sorry for the combustion analogy) could go no further, and would cause an explosion of p/e. And so in fact on 1/26/12 just after earnings, closing price of 444.63 represented a ttm p/e of 12.66! This was the extreme low which led to the expansion all the way to the absolute high of 644 which was ttm p/e of 18.34 on 4/10/12.

    Applying the above extreme p/e's to this quarter we get a low of 519.18 and a high of 752.12! And Thursday close was a p/e of 14.19... Only 12% Higher than 12.66 p/e, and 22.7% lower than 18.34 p/e. Where do we go from here?

    Well now that the hedgies got a whiff and they know there's no catalyst to prop it (The herd is going without the shepherd's protection from the wolf) we're going to re-test the 12.66 P/E level within next week is my guess! And don't let anybody fool you that Apple is finished!

    Disclosure: I am long AAPL.

    Stocks: AAPL
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  • richernow
    , contributor
    Comments (47) | Send Message
    holding apple puts to buys shares. deep under water. anyone think apple will hit 600 by may 18? why? if it keeps dropping I'm doomed :- (
    4 May 2012, 06:38 PM Reply Like
  • pressure sensor
    , contributor
    Comments (83) | Send Message
    Author’s reply » If the dip next week is quick and furious, you might get a snapback. But if it's a long and gradual slide then I'm afraid your time frame will be untenable. But you will learn to not leave yourself exposed like that next time!
    4 May 2012, 06:57 PM Reply Like
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