June 06, 2006

Apple the Company - Apple the Stock - Price matters!

I love Apple the Company. It is well documented.

I have loved Apple the stock until recently.

There is a difference. I am stopped out of the stock from a pure price/trend methodology, but I continue to love the products and the Company. Why is the price dropping if Apple is executing all of the following:

Madison avenue store - check

Best Buy relationship is getting stronger - check

Good partnership rumors (this one with RIMM - "MacBerry") - check

New Laptops - check

Great balance sheet - check

Fashion and Technology partners and opportunities galore- Nike, GPS, Phone - check

Gaming potential (yet never fulfilled) - check


Generally, I don't care but with Apple I would be a buyer at lower prices due to my belief in the positives - so I want to have a background of the issues, not be blinded by love. I liked this explanation of what could be wrong . It is only one person's point of view, but many valid arguments are are made.

In the end, I care about price. My trend following models have me out of the stock until we pass the highs of $84.

My history of looking at pricing patterns like Apple's says beware of lower prices. I am hoping for a price in the 40's to get excited.

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