Apple $1000: Why It's Time To Buy

Oct. 16, 2012 3:54 PM ETApple Inc. (AAPL)318 Comments
Andy Zaky profile picture
Andy Zaky

History has repeatedly taught us that the best time to buy Apple is when the bearish sentiment in the stock has reached the pinnacle of extreme pessimism. When every guest on CNBC is calling for the imminent demise of Apple, when every headline is making a case for why Apple has peaked, and when the stock continues to slide by over a 2% a day right in the face of a market rally, that's when you know it's time to buy.

The last two times we publicly advised investors to buy Apple was on Thursday, May 17, 2012 when Apple was at $530 a share and on Friday, June 17, 2011 when Apple was at $320 a share. In both cases, Apple bottomed out on the following trading session and then went on a 30%+ rally. We have only ever published five public buy recommendations on Apple and each one was published within a few days of Apple's final bottom. We have never missed a long-term price-target on Apple.

Today, Apple has reached one of those very rare buy points. At $630 a share, Apple's stock has the potential to rally over 60% over the coming 12-month period. And that's assuming Apple merely continues to trade at the same depressed valuation it has been trading at over the last several quarters now. If Apple's valuation were to somehow improve, we can see Apple reach $1000 a share much sooner than many expect - perhaps even as early as next July.

The simple truth is that despite all of the sensationalist rubbish surrounding the launch of iPhone 5 ranging from "Mapplegate" to purple hazes or scratched iPhone cases, Apple is selling literally every iPhone 5 that it can make in what has been called the most aggressive international roll-out in consumer electronics history.

This article was written by

Andy Zaky profile picture
Andy Zaky has been a stock investor for over 17-years now and has a Juris Doctorate from the UCLA School of Law-- a top 15 law school in the United Stated.  Andy's focus is in technology stocks.  He has closely analyzed Apple, Google and Amazon since 2005.  Andy currently runs a variety of model portfolios at Bullish Cross and plans to launch a U.S. Domestic conservative Long-Short highly-diversified equity fund that closely tracks the S&P 500.  The model for that fund has signfiicnatly outperformed the S&P 500 since the portfolio launched in 2015 despite being diversified in at least 450 stocks at all times, no derivatives and no single stock comprising of more than 5% of the portfolio's AUM at entry as of September 2017.

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