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

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Kodi 15.0.beta1 - Powerful media center...
Kodi (was XBMC) is an award-winning free and open-source (GPL) software media player and entertainment hub that can be installed on Linux, OS X, Windows, iOS, and Android, featuring a 10-foot user... Read more
DiskCatalogMaker 6.4.12 - Catalog your d...
DiskCatalogMaker is a simple disk management tool which catalogs disks. Simple, light-weight, and fast. Finder-like intuitive look and feel. Super-fast search algorithm. Can compress catalog data... Read more
Macs Fan Control 1.3.0.0 - Monitor and c...
Macs Fan Control allows you to monitor and control almost any aspect of your computer's fans, with support for controlling fan speed, temperature sensors pane, menu-bar icon, and autostart with... Read more
Lyn 1.5.11 - Lightweight image browser a...
Lyn is a lightweight and fast image browser and viewer designed for photographers, graphic artists and Web designers. Featuring an extremely versatile and aesthetically pleasing interface, it... Read more
NeoOffice 2014.11 - Mac-tailored, OpenOf...
NeoOffice is a complete office suite for OS X. With NeoOffice, users can view, edit, and save OpenOffice documents, PDF files, and most Microsoft Word, Excel, and PowerPoint documents. NeoOffice 3.x... Read more
LaunchBar 6.4 - Powerful file/URL/email...
LaunchBar is an award-winning productivity utility that offers an amazingly intuitive and efficient way to search and access any kind of information stored on your computer or on the Web. It provides... Read more
Remotix 3.1.4 - Access all your computer...
Remotix is a fast and powerful application to easily access multiple Macs (and PCs) from your own Mac. Features Complete Apple Screen Sharing support - including Mac OS X login, clipboard... Read more
DesktopLyrics 2.6.6 - Displays current i...
DesktopLyrics is an application that displays the lyrics of the song currently playing in "iTunes" right on your desktop. The lyrics for the song have to be set in iTunes; DesktopLyrics does nothing... Read more
VOX 2.5.1 - Music player that supports m...
VOX is a beautiful music player that supports many filetypes. The beauty is in its simplicity, yet behind the minimal exterior lies a powerful music player with a ton of features and support for all... Read more
Microsoft Remote Desktop 8.0.18 - Connec...
With Microsoft Remote Desktop, you can connect to a remote PC and your work resources from almost anywhere. Experience the power of Windows with RemoteFX in a Remote Desktop client designed to help... Read more

Biz Builder Delux (Games)
Biz Builder Delux 1.0.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.0 (iTunes) Description: Ah, there's nothing like the rhythmic bustle of a burgeoning business burg... especially when you're the one building it... | Read more »
Auroch Digital is Bringing Back Games Wo...
| Read more »
Carbo - Handwriting in the Digital Age...
Carbo - Handwriting in the Digital Age 1.0 Device: iOS Universal Category: Productivity Price: $3.99, Version: 1.0 (iTunes) Description: | Read more »
Draggy Dead (Games)
Draggy Dead 1.1 Device: iOS Universal Category: Games Price: $.99, Version: 1.1 (iTunes) Description: Ditch your dead end job and take up a rewarding career in Grave Robbing today!Guide the recently deceased to a fun filled life of... | Read more »
Bad Dinos (Games)
Bad Dinos 1.0.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0.0 (iTunes) Description: | Read more »
The Apple Watch isn't Great as a Fi...
| Read more »
Show the World What You See With Stre.am...
Live broadcasting is getting popular on mobile devices, which is why you can now get Stre.am, by Infinite Takes. [Read more] | Read more »
PhotoTime's 2.1 Update Adds Apple W...
The latest PhotoTime update is adding even more functionality to the handy photo organizing app. Yep, including Apple Watch support. [Read more] | Read more »
Oh My Glob! Adventure Time Puzzle Quest...
Finn and Jake are taking over D3 Go!'s popular puzzle game series in the upcoming Adventure Time Puzzle Quest. [Read more] | Read more »
Earthcore: Shattered Elements - Tips, Tr...
At first glance, Earthcore: Shattered Elements seems like a rather simple card-battling game. Once you’re introduced to skills that will change quite a bit. Even more so once you start to acquire hero cards. But it’s not so complicated that we... | Read more »

Price Scanner via MacPrices.net

Memorial Day Weekend Sale: New 27-inch 3.3GHz...
Best Buy has the new 27″ 3.3GHz 5K iMac on sale for $1899.99 this weekend. Choose free shipping or free local store pickup (if available). Sale price for online orders only, in-store prices may vary... Read more
OtterBox Maximizes Portability, Productivity...
From the kitchen recipe book to the boarsroom presentation, the OtterBox Agility Tablet System turns tablets into one of the most versatile pieces of handheld technology available. Available now, the... Read more
Launch of New Car App Gallery and Open Develo...
Automatic, a company on a mission to bring the power of the Internet into every car, has announced the launch of the Automatic App Gallery, an app store for nearly every car or truck on the road... Read more
Memorial Day Weekend Sale: 13-inch 1.6GHz Mac...
Best Buy has the new 13″ 1.6GHz/128GB MacBook Air on sale for $849 on their online store this weekend. Choose free shipping or free local store pickup (if available). Sale price for online orders... Read more
Memorial Day Weekend Sale: 27-inch 3.5GHz 5K...
Best Buy has the 27″ 3.5GHz 5K iMac on sale for $2099.99 this weekend. Choose free shipping or free local store pickup (if available). Sale price for online orders only, in-store prices may vary.... Read more
Sale! 16GB iPad mini 3 for $349, save $50
B&H Photo has the 16GB iPad mini 3 WiFi on sale for $349 including free shipping plus NY sales tax only. Their price is $50 off MSRP, and it’s the lowest price available for this model. Read more
Price drop on 2014 15-inch Retina MacBook Pro...
B&H Photo has dropped prices on 2014 15″ Retina MacBook Pros by $200. Shipping is free, and B&H charges NY sales tax only: - 15″ 2.2GHz Retina MacBook Pro: $1799.99 save $200 - 15″ 2.5GHz... Read more
With a Mission to Make Mobile Free, Scratch W...
Scratch Wireless, claiming to be the world’s first truly free mobile service, has announced the availability of a new Scratch-enabled Android smartphone, the Coolpad Arise. The smartphone is equipped... Read more
First-Ever Titanium Alloy Curved iPhone 6 Scr...
One of the most common problems with mobile phones is damage to the screens. The slightest drop can cause a dreaded spider web of gashes and cracks in the glass panel surface that can cost $hundreds... Read more
Preorder new 12-inch MacBook, $10 off, save o...
Adorama has new 12″ Retina MacBooks available for preorder for $10 off MSRP including free shipping plus NY & NJ sales tax only. For a limited time, Adorama will include a free Apple USB-C to USB... Read more

Jobs Board

*Apple* Solutions Consultant - Retail Sales...
**Job Summary** As an Apple Solutions Consultant (ASC) you are the link between our customers and our products. Your role is to drive the Apple business in a retail Read more
*Apple* TV Live Streaming Frameworks Test En...
**Job Summary** Work and contribute towards the engineering of Apple 's state-of-the-art products involving video, audio, and graphics in Interactive Media Group (IMG) at 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
Partner Marketing Manager, Merchant- *Apple*...
**Job Summary** The Apple Pay partner marketing team is looking for a marketing manager to develop and drive US marketing programs with our merchant partners. The right Read more
Technical Project Manager - *Apple* Pay - A...
**Job Summary** Apple Pay is seeking an experienced technical PM to…manage the on boarding of new merchants for the Apple Pay platform in the US Within this role you Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.