On Tuesday Apple broke its 200 day moving average, spurring comments from multiple high profiles investors, including Carl Ichan and Larry Ellison. The price is continually rising; Koyal Group will take a position.
Aug. 15, 2013 - TOKYO, Japan -- For the first time this year, on Tuesday Apple broke its 200 day moving average, a gauge that analysts use to assess the overall trend of a stock over a longer period of time rather than day to day fluctuations. The stock climbed nearly 5% to close at $489.57, its highest level since the end of January this year. Analysts at Koyal Group believe the Apple, with its upcoming product line to debut next month, has turned the corner and expect the stock price to climb significantly by the end of the year.
"We will be taking a moderately sized position in the company, but I cannot disclose the exact number of shares we will purchase at this moment. I am setting our target share price at $625 and I expect them to achieve this figure in the next 10 months," said CEO of Koyal Group Edward Neilson.
There has been a flurry of statements about the company from billionaire investors. Oracle´s CEO Larry Ellison said that Apple is "doomed" without its visionary CEO Steve Jobs. But Koyal Group's analysts disagree stating that new appointed CEO Tim Cook has been with the company since its beginning and he has been running Apple for the past two years before Jobs pasted on. During that time Apple has averaged $700 million a week in profits.
Activist investor Carl Ichan disagreed with Ellison and said that Apple is seriously undervalued. He released statements on twitter saying so, and the stock price raised $9 in three minutes, it finished the day up just over $22. Analysts at Koyal Group are confident that with the help of Ichan Apple with approach its 52 week high.