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My name is Martin, from Cape Town, ZA. I'm the Co-Founder and Chief Editor of the growing BinaryOptionsThatSuck.com Traders Community. I've an experience of over 8 years in Forex as a Portfolio manager, Trader and guest writer for many financiel and forex websites such as Investment.com,... More
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  • Time To Jump On The Apple Bandwagon 0 comments
    Jan 20, 2013 5:56 AM | about stocks: AAPL

    If there ever was a time to buy Apple stock, or to bet on its short-term appreciation then this is it. While the Cupertino giant is not necessarily underpriced, $520 per share is definitely a fair price and the odds of it rising are excellent. 2012 was quite a roller coaster for those who had long positions, with the prices soaring to a the record $700 per share in September, only to lose 25% in the next four months.

    The future looks bright for Apple

    There are plenty of reasons for being bullish towards Apple stock, with past performance, consumer confidence and great business model being all solid arguments. There is another reason for why binary options traders can bet on this stock without taking significant chances in early 2013, and this is the fact that Apple has a staggering $120 billion in investments and cash. This should act as a cushion against both unforeseen and predicted obstacles, and even offset the effects of potential high repatriation taxes.

    Despite the fact that both the iPhone 5 and the New iPad were criticized by some tech savvy analysts, Apple reported record sales once again. Their fans are just as dedicated as they are numerous and so far it appears like the company can't go wrong with any of the products they release. This should act as a comforting thought for those who are fearing what might happen if Apple misses the quarter estimates again. All of these arguments should convince traders to buy call options for Apple stock.

    What might go wrong for Apple

    Even the best can fail and Apple wouldn't be the first tech company to lose its dominant position in this niche, with Nokia and Research in Motion, being just a few worth examples. Incidents such as the one caused by Apple removing Google maps are the kind of arguments that critics bring on the table when warning investors to stay away from Apple stock. The truth is that the company weathered the storm with virtually no consequences and the dent in stock price was insignificant.

    Different types of incidents that might hurt the company's image are just as unlikely to occur, and their impact will probably be minor. Apple handled the debacle about inadequate working conditions very well, and not even a scandal involving its top executives would be enough to hurt the stock. Losing the competitive edge and market share is a real threat, but only for those who have long term plans. Binary options traders can safely take a leap of faith with Apple and bet on what appears to be underpriced stock.

    Themes: apple binary options Stocks: AAPL
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