Why Apple’s stock price will continue to climb

“I sold my shares of Apple (for a profit) many months ago (somewhere in the $515 range),” Mike Stallings writes for Seeking Alpha. “I felt it had run its course for the time being and frankly I had many other opportunities available that I took advantage of. I should have held longer, but we all know it is very difficult to time the market just right.”

“Apple as we have known for a long time is difficult to categorize as a type of company. Not that it is a bad thing, the company is unique and has wowed us for a long time now. It does make it difficult when it comes to valuation,” Stallings writes. “Considering the Price vs. Sales is below 3 and P/E around 11, I find Apple to be an attractive investment at the current price ($475). When you compare Apple to their closest competition (see link), it looks that much better.”

Stallings writes, “Because of this, I have recently purchased options of Apple with a target price of $560 for both March and June 13. Although the March calls look a little shaky at this point (although I still may turn a profit when all is said and done, currently worth 5% more than when purchased) the June calls look like a home run. Here are some other reasons why I see them coming to fruition.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]

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12 Comments

  1. I still don’t see why you people insist that Apple’s share price will climb when we’ve already seen it collapse in the blink of an eye despite having one of the best quarters on Wall Street and while the market as a whole was heading up.

    Take a look at that steadily shrinking P/E. Every quarter it drops lower. If it continues like this and Apple doesn’t impress Wall Street in some form or fashion, by next quarter it will be in the 9s. The street has totally lost faith in this stock and/or company or at least it appears that way. It’s undervalued now and it can easily stay undervalued in the future. When investors have more faith in a stock like Netflix than they do Apple, then confidence in Apple’s smartphone success must be close to zero.

  2. don’t expect too much. rising stock price for last couple of days is just one of circle up and down just like usual stock market. overall apple stock has continued to fall. it will be even further if apple won’t create new market. according to news, apple will develop iwatch soon. unfortunately, this concept was already taken long time ago. few companies have produced lots of them. but market is already dead. if apple will do, it will fail. stock will drop dramatically. TIm is not Steve. Tim can’t create brilliant market with brillant idea. apple is slowly dying now.

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