Here’s my take. Sure, Apple’s a winner and there’s still growth in the stock for the near term. Analyst targets average around $300, with highs at $350+. If you’re long AAPL, I recommend sell orders at $301. If you’re not already in AAPL, buy on dips and ride it to $301, then sell. AAPL becomes too volatile above $300 and any number of factors could stall the current ‘Apple over-exuberance’. None of us know how to estimate the projected iPhone and iPad sales. They could blow everyone out of the water and beat earnings estimates or they could have a minor slip up sending the stock lower. Who knows? The best scenario would be for AAPL to do a 2-1 or even 3-1 split to make it a more attractive/less risky play to investors.
Does this $301 sell price risk missing an even bigger run to $350 and higher? Possibly. But you’ll have already profited nicely at $301 and can afford to take a pause. If AAPL then looks to break out to a higher range, then get back in at $316 and ride it out. OK, you’ll have missed $15 of price gains, but I think the risk/reward makes this a prudent strategy in the current economic climate.
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Disclosure: "Long AAPL"