“Anyone who has read my blog knows that I have been a huge bear on Apple because I knew that many of the biggest mutual funds and hedge funds were dumping this stock over the last 3 month,” Will Meade writes for Billionaires Portfolio.
“Yet I never mentioned the fundamentals of Apple, which everyone already know about how they have the best balance sheet in the world, a great dividend that’s higher than the 10 year treasury and growing, and now a perfect technical trading setup on the chart,” Meade writes. “See I am an opportunist, I might have hated Apple over the last 3 months, but that does not mean I am not always looking at the stock every week to see if there are any signs of a bullish reversal. Well we finally have one. Apple is starting to form an incredibly bullish pattern its called an Inverse Head and Shoulders Pattern… Now the second reason I think Apple is bottomed is that there is a catalyst which propel this stock back up to the $545 area, which would be a 25% move from Apple’s current share price of $433.”
Meade writes, “Here is the catalyst: Tim Cook the CEO of Apple, for the first time has come out and lobbied for Apple verbally in the public domain. This is a sign of leadership major hedge funds have been waiting for. Mr. Cook is going to congress and try and work with the US Government on repatriating the billions of dollars that Apple has overseas back into the US at a lower tax rate. I think the US Government will work with Apple and Mr. Cook on this. Why? well as Mr. Cook has said Apple is a huge taxpayer already and a huge employer of US Citizens, so they have a lot of power to negotiate and therefore I believe Apple and the US government will cut a deal on this offshore money… The cloud of uncertainty will start to disappear. When you combine that catalyst with the bullish Inverse Head and Shoulders Chart Pattern, it means Apple has bottomed.”
Read more in the full article here.
[Attribution: Fortune. Thanks to MacDailyNews Readers “Fred Mertz” and “Arline M.” for the heads up.]