“The best that can be said for the stock market over the past few weeks is that the sea of red makes winners easier to find. Yesterday when the NASDAQ was getting beaten absolutely senseless, shares of Apple (AAPL) were actually able to find some buyers,” Jeff Macke reports for Yahoo Finance. “In fact, since Apple blew up after weak a earnings report last Monday the stock has consistently had support every time it dropped below the big round number of $500.”
“Whatever you think of the long term prospects for the company, from a trading perspective it’s starting to look like $500 is a decent place to try a long position with a tight stop,” Macke reports. “Jeff Kilburg of KKM Financial makes the case that Apple shares might even be a good buy for the long term.”
“Noting the stock hasn’t done much over the last 12 months, Kilburg says investor pessimism surrounding Apple’s apparent inability to come up with the next big thing in tech has been overdone. ‘Apple doesn’t need this revolutionary product,’ Killer insists. ‘They need to sell iPhones and sell iPads in China. That’s it,'” Macke reports. “If it did take something fresh and exciting to get the shares jumping for the longer term Kilburg argues there’s an answer that doesn’t involve creating a great new device. There are already 575 million rabidly loyal iTunes customers spending billions on apps and digital content. Turning them into users of an ‘iCard’ and going into more mobile payments is a massive source of untapped potential income most investors haven’t even considered yet.”
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