Is Apple running out of juice? Nope
TweetFollow Us on Twitter

Is Apple running out of juice? Nope

Apple's explosive rally from near $350.00/share last November to well over $600.00/share earlier this month has left many traders talking about whether the stock is now in a bubble and whether it will burst. The answer to that is "no."

"Fundamental and technical indicators have been sending conflicting signals about whether Apple is in a bubble From Nov. 25 through April 9," says Colin Cieszynski, senior market analyst at CMC Markets (http://www.cmcmarkets.co.uk/) Canada. "Apple shares gained 74.9%. Over the same time frame, the Dow Industrials went up 15.1%. The company also has blasted through the high end of a channel and the chart has gone parabolic or nearly vertical. Technically this suggests that Apple is probably in a bubble and vulnerable. In contrast,fundamental indicators suggest that the stock could still have room to run for a while.”

To me, it looks as if the stock will run for a loooong time. Apple's weighting in the NASDAQ 100 has jumped from 15% to 19% in recent months (though it remains below the 20% level it was at in late 2010). Cieszynski says alarm bells could be triggered were this to rise into the 25-30% range in the coming months. My prediction: this won't happen. In fact, look for a sub-15% weighting within three months.

Cieszynsk says Apple's current price-to-earnings (P/E) Ratio has climbed up toward 18 but still remains low relative to most of the last decade. Again, look for that to climb within three months as Mac sales jump due to a revved, Ivy Bridge-based desktop and laptop line, as well as the roll-out of the Mountain Lion operating system. After this we have the next gen iPhone to spur sales and -- perhaps -- the rumored iTV by the holiday season.

Companies with a higher growth rate can support a higher P/E ratio. With one being considered average for the PEG ratio and 2-3 sending out warning signals, Apple’s current 0.3 ratio suggests considerable upside remains possible.

As CMC Markets notes, with the explosive rally in Apple stock has also come a parabolic increase in expectations for the company’s products and financial results. Recent idle chatter around the markets of a $1,000 share price or a trillion dollar market cap ($1,072 per share) suggests that hopes have become extremely high for the company’s continued success. As well they should be. I'm not sure about a $1,000 price share, but I'd be willing to bet on at least $800 by year's end.

-- Dennis Sellers

 
AAPL
$100.41
Apple Inc.
-0.17
MSFT
$45.11
Microsoft Corpora
+0.16
GOOG
$583.46
Google Inc.
-1.03

MacTech Search:
Community Search:

Software Updates via MacUpdate

Videobox 4.1.1 - Download Flash video th...
Videobox allows you to quickly and easily download Flash video from most all of the popular video sites on the internet. Videobox will convert the video into a native Quicktime format so it's ready... Read more
Web Snapper 3.3.5 - Capture entire Web p...
Web Snapper lets you capture Web pages exactly as they appear in your browser. You can send them to a file as images or vector-based, multi-page PDFs. It captures the whole Web page - eliminating... Read more
Picasa 3.9.138 - Organize, edit, and sha...
Picasa and Picasa Web Albums allows you to organize, edit, and upload your photos to the Web from your computer in quick, simple steps. Arrange your photos into folders and albums and erase their... Read more
Tidy Up 3.0.15.0 - Find duplicate files...
Tidy Up is a complete duplicate finder and disk-tidiness utility. With Tidy Up you can search for duplicate files and packages by the owner application, content, type, creator, extension, time... Read more
Parallels Desktop 10.0 - Run Windows app...
Parallels Desktop is simply the world's bestselling, top-rated, and most trusted solution for running Windows applications on your Mac. With Parallels Desktop for Mac, you can seamlessly run both... Read more
Apple Final Cut Pro X 10.1.3 - Professio...
Apple Final Cut Pro X is a professional video editing solution.Completely redesigned from the ground up, Final Cut Pro adds extraordinary speed, quality, and flexibility to every part of the post-... Read more
Apple Compressor 4.1.3 - Adds power and...
Compressor adds power and flexibility to Final Cut Pro X export. Customize output settings, work faster with distributed encoding, and tap into a comprehensive set of delivery features. Powerful... Read more
Chromium 36.0.1985.143 - Fast and stable...
Chromium is an open-source browser project that aims to build a safer, faster, and more stable way for all Internet users to experience the web. FreeSMUG-Free OpenSource Mac User Group build is... Read more
Macgo Blu-ray Player 2.10.6.1691 - Blu-r...
Macgo Mac Blu-ray Player can bring you the most unforgettable Blu-ray experience on your Mac. Overview Macgo Mac Blu-ray Player can satisfy just about every need you could possibly have in a Blu-ray... Read more
Apple Motion 5.1.2 - Create and customiz...
Apple Motion is designed for video editors, Motion 5 lets you customize Final Cut Pro titles, transitions, and effects. Or create your own dazzling animations in 2D or 3D space, with real-time... Read more

Latest Forum Discussions

See All

BoxPop Review
BoxPop Review By Jennifer Allen on August 21st, 2014 Our Rating: :: UNTAXING PUZZLESUniversal App - Designed for iPhone and iPad Move from tile to tile to clear the board in this slightly too simple and easy puzzle game.   | Read more »
Breakdown Buddy Review
Breakdown Buddy Review By Jennifer Allen on August 21st, 2014 Our Rating: :: FLAWED CONCEPTiPhone App - Designed for the iPhone, compatible with the iPad There’s a good idea here, but Breakdown Buddy isn’t as useful as it tries to... | Read more »
jamstik, the Guitar You Can Take Everywh...
jamstik, the Guitar You Can Take Everywhere, is Now Available for Purchase Posted by Jessica Fisher on August 21st, 2014 [ permalink ] Zivix has announced that their guitar-in-your-pocket, | Read more »
Star Walk 2 - Guide to the Sky Day and N...
Star Walk 2 - Guide to the Sky Day and Night 1.0.0 Device: iOS Universal Category: Education Price: $2.99, Version: 1.0.0 (iTunes) Description: The next generation of the best-selling Star Walk, winner of Apple Design Award, used by... | Read more »
Forks Over Knives Review
Forks Over Knives Review By Jennifer Allen on August 21st, 2014 Our Rating: :: TASTY AND HEALTHYUniversal App - Designed for iPhone and iPad Want some tasty new recipe ideas but want to keep it healthy? Forks Over Knives is the... | Read more »
Invaders! From Outer Space (Games)
Invaders! From Outer Space 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: | Read more »
Dementia: Book of the Dead (Games)
Dementia: Book of the Dead 1.00 Device: iOS Universal Category: Games Price: $2.99, Version: 1.00 (iTunes) Description: EXCLUSIVE CONTENT ONLY ON THE APP STORE. Medieval England. Times of knights, witches and hunters. What other... | Read more »
Wan Nyan Slash (Games)
Wan Nyan Slash 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Wan Nyan Slash is an infinite adorable demon slaying slashing action game! Play as the wandering samurai Wan and Nyan as they... | Read more »
Fallin Love - The Game of Love (Games)
Fallin Love - The Game of Love 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: GRAVITATE AROUND LOVE | Read more »
Ancient Battle: Hannibal (Games)
Ancient Battle: Hannibal 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: | Read more »

Price Scanner via MacPrices.net

21-inch iMacs on sale for up to $150 off MSRP
B&H Photo has 21″ iMacs on sale for up to $150 off MSRP including free shipping plus NY sales tax only. B&H will also include a free copy of Parallels Desktop software: - 21″ 2.7GHz iMac: $... Read more
27-inch 3.2GHz iMac on sale for $1698, save $...
Abt has the 27″ 3.2GHz iMac on sale for $1698 including free shipping. Their price is $101 off MSRP. Read more
Mac Backup Guru 2.0 Drive Backup/Cloneing Uti...
Mac Backup Guru developer MacDaddy has released Mac Backup Guru 2.0, offering new and enhanced advanced features, such as bootable backups, synchronised volumes and folders, and a Snapshot mode that... Read more
Operate GE’s New Free-Standing KItchen Range...
Think you accidentally left the oven on? Switch it off while on the go. The new free-standing Profile™ Series gas and electric ranges are GE’s second cooking appliances, following their wall oven, to... Read more
Parallels Announces Parallels Desktop 10 for...
The no. 1-selling software for running Windows applications on a Mac becomes an even easier choice for millions of consumers and IT professionals worldwide with the launch of the most powerful... Read more
Apple now offering certified refurbished 2014...
 The Apple Store is now offering Apple Certified Refurbished 2014 MacBook Airs for up to $180 off the cost of new models. An Apple one-year warranty is included with each MacBook, and shipping is... Read more
Best Buy’s College Student Deals: $100 off Ma...
Take an additional $100 off all MacBooks and iMacs, $50 off iPad Airs and iPad minis, at Best Buy Online with their College Students Deals Savings, valid through September 6th. Anyone with a valid .... Read more
MacBook Airs on sale for $100 off MSRP, free...
B&H Photo has three 2014 MacBook Airs on sale for $100 off MSRP. Shipping is free, and B&H charges NY sales tax only. They also include free copies of Parallels Desktop and LoJack for Laptops... Read more
Razer Taipan Mouse For Gamers And Non-Gamers...
If you’re a serious gamer on either Mac or Windows PCs, a serious gaming mouse is a necessity for first-tier performance. However, even if like me you’re not much of a gamer, there’s still a strong... Read more
15-inch 2.2GHz MacBook Pro on sale for $1899,...
Adorama has the new 15″ 2.2GHz Retina MacBook Pro on sale for $1899 including free shipping plus NY & NJ sales tax only. Their price is $100 off MSRP, and it’s the lowest price available for this... Read more

Jobs Board

Project Manager, *Apple* Financial Services...
**Job Summary** Apple Financial Services (AFS) offers consumers, businesses and educational institutions ways to finance Apple purchases. We work with national and Read more
*Apple* Solutions Consultant (ASC)- Retail S...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
Position Opening at *Apple* - Apple (United...
…customers purchase our products, you're the one who helps them get more out of their new Apple technology. Your day in the Apple Store is filled with a range of Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
Senior Event Manager, *Apple* Retail Market...
…This senior level position is responsible for leading and imagining the Apple Retail Team's global event strategy. Delivering an overarching brand story; in-store, Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.