Another Oktoberfest for Apple (AAPL)?today nice touch to 50ma.
Topeka Capital'sBrian White, a well known Apple (Nasdaq: AAPL) bull, put out an interesting bit of info on Apple stock's historical performance in the month of October. Going back to 2003, October has been the best performing month for the stock. On average, in the month of October, shares have gained 10 percent.
"This is no minor statement," wrote White, who has a $1111 price target on the stock.
After touching $700 prior to the release of the iPhone 5, Apple stock has since rolled over, and is lower by over 6 percent. The good news is this gives the stock room to run higher and achieve the 10 percent gains Topeka predicts. The bad news, say traders, is first the Apple's declining stock has to find support, which lately has been noticeably allusive.
Ironically, the stock's decline is tied to record breaking sales of the iPhone 5. To many this illustrates the unrealistically high bar some analysts and investors have for Apple. Others say, just wait, and Apple will deliver they way it always delivers.
"We continue to believe it will be difficult for investors to justify not being overweight the stock through the holiday season and into 2013," White says. "In our view, the recent pullback in the stock and the rising chorus of investors and/or market pundits trying to call the top in Apple is another positive indicator that sentiment has shifted and the stock is preparing to make another big leg up."
White might be correct. On the other hand, White and other bulls might be fighting against the crowd, and until the stock shows a little more life, historical October returns might simply be irrelevant. |
