“Apple’s share price has increased rapidly in the last few weeks,” Horace Dediu reports for Asymco. “The rise to $600 was swift and broke the pattern of slow growth the the stock was able to obtain over the past few years. The level, however, shouldn’t have been a complete surprise.”
I think Apple is going to $600…It’s really not that complicated. Apple has a number of key drivers in its business model which have yet to be properly priced into the stock because I think it’s very cheap at this level. — Stephen Coleman, chief investment officer at Daedalus Capital
Dediu reports, “This prediction was made October 26, 2007. On that date Apple’s share price closed at $184.7. It may have seemed like a bold bet, but as Coleman noted, the reason why it would reach $600 was easy to spot.”
Read more in the full article, including what took so long, here.
MacDailyNews Take: Dediu posits that it took so long to get to $600 because “people are reluctant to believe the truth.” That well well be a contributing factor. The Christmas 2011 quarter may have woken up a lot of people.
However, there has been also been another potential catalyst: The removal of the Steve Jobs uncertainty. After many years, there are no more “health scare” manipulations. The weight has been lifted from the stock. Our own SteveJack wondered if Steve Jobs had become too much of a liability for Apple shareholders back in December 2008. In hindsight, he may have been right.
Steve Jobs resigned as CEO of Apple on August 24, 2011. That day AAPL closed at $376.18, up $2.71 from its open at $373.47. Currently, AAPL is trading at $613.15.
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]
Related articles:
Analyst: Apple shares will hit $600 in 18 months – December 27, 2007
Daedalus Capital CIO: Apple shares ‘going to $600’ – October 26, 2007