Apple: Here’s why the stock will go on an epic run

“Relax, don’t do it when you want to come unglued,” Rocco Pendola writes for TheStreet (published at 7:45 AM EST today). “If you own Apple (AAPL), it’s no sin to have sold somewhere along this recent plunge line, particularly if you were sitting on massive unrealized profits. Never a bad idea to take profits.”

“At the same time, if you own AAPL, it ain’t no sin to be glad you’re alive,” Pendola writes. “While doubling down, as a general strategy, can blow up a portfolio, it’s a risk I would be willing to take with AAPL right now. I’m not sure I have ever seen a stock more ‘certain’ (because nothing in life is ever certain, particularly on Wall Street) to make a more historic run in my lifetime.”

Pendola writes, “As the noise works itself out, I expect another parabolic run between now the end of January when Apple reports holiday quarter results.”

Read more in the full article here.

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22 Comments

  1. There are an awful lot of question marks regarding Apple, it’s ability to execute and it’s vision and leadership going forward.

    They are sitting on a pile of csh, but seem content to blow it on nonsense.

    1. Really – What questions – Made up ones – Apple is the only tech company making any money and they will continue to. They are the largest company in the world and still growing. Wait till they start picking up more windows users…. If you have windows now and you want to upgrade – either Mac or PC you will need a new computer and have to learn an entirely new OS so why not switch to a mac where the learning curve is not steep. You already learned that by using both your iPhone and iPad.

      1. Exactly! Yesterday a friend of mine told me that he did an update to his windows laptop that hosed the system completely, and guess what, he is seriously looking at replacing it with an apple product. This is happening more and more times, especially with window 8 being the turd that it is, more and more people will be moving to apple.

      1. Apple’s problems are not going to cause problems in 2012, but they might well be sourced in 2012. It looks like a company adrift, without vision and a unified game plan.

        Unless you are a short term trader these little swings are not what you should be looking at. When I bought my first Apple stock in 2001 I was not looking at P/E or any of that. What I WAS looking at was a company that was doubling down on R&D at a time it’s competitors were cutting back, retrenching, canceling projects and such. By that time Jobs had righted the ship, was launching OS X, had stabilized and mapped a way forward and few were buying or buying into Apple.

        I buy to hold for more than a season and I see a company in disarray.

        1. Wow… talk about made up bs.

          Apple has the clearest plan of any company in the tech business: make great products that people want and make a nice profit doing it. No other company is nearly as successful or as focused.

          1. And how many years were you afflicted by Windoze before you woke up and bought a Mac? Or did you buy one because “everyone down at the frat house has one”?

    2. Wall Street seems very content to disregard Apple’s future considering how Apple’s P/E continues to shrink. Jeff Bezos was considered Fortune’s Businessperson of the Year and Amazon has a P/E of 3000 and climbing. Quite a few powerful people believe in Amazon’s future but not so many in Apple. Who knows why since the future is unwritten.

      Apple has enough money to easily acquire a couple of more companies. Apple could probably take a healthy chunk out of Amazon’s P/E if Apple acquired Netflix. But no, Apple is content to just sit back and get bitch-slapped all around by smaller companies. I think Apple could really benefit from more media content control to sell its hardware. I’d just like Apple to do a better job at convincing Wall Street it has a future if that’s not asking too much for, as a shareholder. There really shouldn’t be so much questioning about Apple’s future growth. Apple does seem to be planning for the future, but whatever they do it seems to add up to nothing in Wall Street’s eyes.

    3. Gawd, but you are one brilliant, SOB, aren’t you? But, uh, by the way . . .

      “it’s = it is”
      “its = the possessive pronoun, as in “. . . [its] ability to execute and [its] vision . . . .”

      If you cannot master this elementary concept of the English language, why should ANYONE listen to anything else you have to say?

    4. They blew the money on nonsense.

      Let’s see, the remembering Steve Jobs memorial, buying patents so Google couldn’t get them, buying Motorola, no wait, that really was nonsense, by Google, the list goes on and on, NOT.

      1. 1-Stock Buybacks.
        2-Dividend.
        3-Buyout of execs that should have never been hired.
        4-Paying truckloads of inept lawyers for Fandroid lawsuits that couldn’t prove gravity in a courtroom.
        5-Paying lobbyists trying to change US tax law to evade taxation (tax repatriation holiday).

        For starters.

  2. We dont yet have the full ramifications of the Windows 8 disaster, not to mention Apple’s clearing of product upgrades to make room for a possible major announcement like Apple TV.

  3. Apple is rolling and the competition is scrambling in their wake. Everyone, even Windows partisans, knows that by now.

    Nonsense? Questionable leadership? Even Napoleon and Alexander lost men and horses, or ceded ground, or survived plotters; each man had his peccadilloes as well. At the end of the day, the momentum, the lands and treasuries, and the future were won by them.

    1. Yup. It’s all about the long-term. The last few quarters have been a bit rough but Apple has adjusted and built up the momentum and devised a strategy to counter the encirclement tactics of the competition.

      I’m an Alexander buff (as if that’s not too hard to tell) and what made him so special is that he was able to adapt to myriad strategic and tactical challenges as they developed. Whether it was gigantic set piece battles against armies that greatly outnumbered his, laying siege to fortresses on top of mountain cliffs, guerrilla warfare against hit-and-run tribes, or setting a strategy to maintain order within a 2 million+ square mile territory he conquered that long ago, he was always successful with a better strategy and resulting tactics.

      I see a lot of parallels between what Apple is doing and how Alexander built his empire. I’m talking very general strategic maneuvers that can be applied to all sorts of situations and conflicts. The Apple ET knows what it’s doing.

  4. Apple’s only problem is they can’t make enough products to fill demand even when production lines are running at full capacity. That why Apple has doubled their capital investment for next year. Oh, what a terrible problem.

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