“Some say Apple is headed to $200 in a year,” Ken Goldberg writes for TheStreet. “Technical analysis says otherwise. In fact, quite the opposite.”
“Back in July, the decision support engine warned to exit Apple shares while they still enjoyed triple digit pricing status. Within a month, share prices fell from the 125-zone to the August 24 low near 90,” Goldberg writes. “They’ve bounced nicely since, but are not done fulfilling their destiny, which includes a probing of the 75 +/-5 area, with growing probability that 60 +/-5 will be seen.”
Goldberg writes, “The Apple is about to fall farther from the tree than it did at the August harvesting.”
Read more in the full article here.
MacDailyNews Take: $60? We’d certainly back the truck up for that.
[Thanks to MacDailyNews Reader “David E.” for the heads up.]
Garbage in, garbage out. Another short getting his clock cleaned…
Wouldn’t be surprised – the stock is trading very poorly
On the contrary, the stock is trading very well and IS ON SALE. BUY AS MUCH AS YOU CAN AND WATCH THE PRICE TURN AROUND.
not every “anal-yst” is going to correct +- for BUN every time they generate an EGG analysis.
it’s the way of the world.
At 60, Apple could almost buy itself and go private. And these silly [insert stronger adjective] writers could go and write nonsense about some other company.
I’m not sure Apple can buy back more than they set out to in their last buy back stockholder vote. On the other hand they could just announce a privatization and buy out all the shares whether the shareholder wants to sell or not.
I am afraid that is impossible, tincan2012. A corporation is owned by its shareholders. As corporate assets are used to buy back shares, the ownership in the company is simply concentrated in a smaller number of shares. Apple would still have considerable value to investors, even if every bit of Apple’s liquid assets were expended in the stock buy back campaign.
If apple could somehow buy back hundreds of millions of shares, the owner of the very last share would own Apple as the sole stockholder and control all remaining assets. So Apple could never buy itself back, even in this purely theoretical and impossible thought experiment.
Please folks, put this meme to rest, once and for all. A corporation cannot buy itself back using internal assets. It takes external funds to acquire a corporation.
Maybe if Apple bought itself it would become self-aware and transcend our universe. Suddenly that spaceship campus makes a whole lot more sense…
My God it’s full of stars
Not really true. A corporation can borrow and buy its shares. And it doesn’t have to retire the shares it purchases; it can hold them as treasury stock. It can issue treasury stock to its employees or executive team (or retire them).
And Apple has been aggressive with borrowing in order to achieve its objectives, specifically to effectively free up some foreign cash without actually repatriating. If Apple’s stock dropped to some insane level like $60, you can bet you’d see the board approving a huge buyback.
I would let everyone else sell their shares then as the last shareholder I would own Apple. At last we would get iWork fixed.
😇
As several others have pointed out Apple cannot simply buy the shares using it own money or debt. The shareholders own that.
Someone would need to do a dell and raise money independent and propose an offer to buy all the stock from shareholders. It would require probably close to $1 trillion to be raised. I can’t imagine that could ever happen.
he should smoke better quality pot
He forgot to say after 2 to 1 split.
Not impossible, but consider how improbable $60 per share for AAPL would be (without Apple doing another stock split). Apple likely has well over $200B as pure cash by now. Apple has taken on low-cost long-term debt (instead of paying a high federal tax to repatriate overseas cash), but that is comparatively small. The “net positive” cash on hand is probably about $30 per AAPL share.
If AAPl ever drops to $60, that means HALF of Apple value is its cash hoard. So, Apple’s ongoing business is only worth $30 per share (about $170B total)?
So who is right here, Brian White at $200 or Ken Goldberg at $60?.
I say they’re both crazy or high on dope. How about the stock going back up to where it was earlier in the year and we can talk about it at that point. Forget Apple’s cash hoard because it’s overseas and won’t be touched. Wall Street considers it not existing, so shareholders should also look at it that way. I’m sure Apple will never touch that money until there’s some repatriation tax holiday.
Hmmm… The average of the two is 130. Probably closer to reality.
Do “Technical Analysis” and “Destiny” really belong in the same article?
Morons… Drawing voodoo/ bogus Arbitrary lines on any chart and claiming its science..
U may as well go To psychics and ask their opinion..
These freaks have to be stoped … They are destroying whats left markets credibility , reporting, analysis and journalism….
I wonder if all those terms and names you are throwing around could be applied to yourself?
Moron, voodoo, bogus, freak, not credible etc. and to top it all, spelling and punctuational challenged.
Maybe he’s on a mobile. In any case, the grammar police are persona non grata around here. As for the substance of his post, I can’t aee where he’s wrong, except he left out the reading of the goat entrails. I have seen them do that up on the trading floor.
Why?
This article of Ken Goldberg wants to confront Brian White’s article today.
http://fortune.com/2015/10/02/apple-brian-white-analyst/
Ok Tim, I’ll give you my piggy bank, two original Matchbox cars and my favorite cats eye marble for Apple…
Deal?
At $60, wouldn’t that mean that the company is only worth the cash on hand with zero future prospects? In other words, even if apple never sold another product ever, the stock would be worth $60 a share. Reveals the extremely hazardous myopia of purely technical analysis detached from fundementals.
Apple stock is now at the mercy of external forces. The first hit was delivered by unfounded fears. Now we have the interest rate hike coming in a month or two and also the craziness within GOP Congressional majority will give us big government shutdown in November over debt-ceiling. If share price can’t up in the Holiday season, then it won’t in the next year. The only person who controls the destiny of Apple is Tim Cook. If he makes a big product announcement or acquire a big company that would change the conversation and help the stock. But he is unlikely to do any such thing. I think 90 or 85 is a real possibility.
When people like you stop buying the stock, it goes down. When institutions sense that people like you aren’t buying the stock, they sell and the price goes down. You personally, have the power to raise the stock price by buying. You are not powerless. The economy is based on what people like you decide to do on a daily basis.
There are dozens of companies whose stock should be below $60. Apple is not one of them. Amazon, Facebook and Tesla come to mind. They are not even generating income worth talking about. As for dividends, that’s not gonna happen anytime soon with these losers.
So, one headline says the stock is undervalued. This one says it’ll fall badly. And another states they sold a record 13 million iPhones in first weekend.
Just another crazy day in the world of economics…
Stocks go up and go down, when the good stocks go down.. Pick it up, simple..
The headline promises “why” but the article offers none of it. Unsubstantiated forecasts are worthless. That said, as a (retired) economist, I’ve always deprecated and scorned investments in listed companies. The stockmarket is little more than a lottery with an equal number of winners and losers. Unlisted companies always offer better security. No client of mine has lost a single dollar in 50 years of advising them. However, if I were forced to invest in listed securities, Apple stock would be my choice, including right now. At the end of the day, the market will inevitably shrug off the insanity that currently dominates the price of the stock. And BTW WTF is the “Decision Support Engine” anyway?
Oh look. The DEcision Support Engine is a tool of some fucking email spammer called MailChimp. No kidding. “MailChimp is an email-marketing service that serves more than 9 million companies of all shapes and sizes, from all over the world. We send more than 600 million emails every day” No wonder the planet is warming up, with the increase in electricity generation needed to power this and similar assholes. CEO is some nut called Ben Chestnut. One of the online world’s most hated — an email spammer. Wow.
Simple way to solve the problem. Apple spends lots of money on buy back. If they reduce little bit buy back and pays say $6 to $8 as a dividend, then shares will start going up.