Apple’s Q214 “earnings provided the catalyst that decisively broke the short-term downtrend and seemingly assisted a gradual turnaround in sentiment,” Dr. Duru writes for Seeking Alpha. “Assuming many institutional investors were caught under-invested in Apple post-earnings, the turnaround in sentiment could provide sufficient buying fuel to propel AAPL above $600 and an eventual rendezvous with its all-time high another 19% away. Recall Morgan Stanley’s earlier claim that Apple’s top 30 institutional holders only held 30% of the company’s stock – a record low and down from the peak of 40% in 2009.”
“If institutional investors do not reload, the 7:1 split planned for holders of stock as of the close of trading on June 2nd will help bring more retail investors into the stock (and likely out of the options trading pits),” Dr. Duru writes. “It is no accident that CEO Tim Cook made purchasing demand the core reason for the split: ‘We are taking this action to make Apple stock more accessible to a larger number of investors.’ The split, of course, does nothing to change the value of the stock or the company, but psychologically, the ability to buy more than 1 or 2 shares means a lot for folks who have just a little to invest.”
Dr. Duru writes, “Overall, the tide seems to be finally turning for AAPL. Improving trader and investor sentiment sits at the core of the recovery story in the shares. Next up, new products to seal the deal?”
Read more in the full article here.
MacDailyNews Take: We look forward to resuming our “all-time high” articles ASAP.