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.