| | | Pedaling uphill on a 16yearcycle,
I ALSO believe a one-year target of $800 is reasonable. However, I get there slightly differently. The
2015 AAPL earnings are currently suggested to be around $48. I believe that over the next year the
analysts will increase this to earnings of $50/share. The CURRENT PER for AAPL is 15+. If one uses
15 times $50, you get a price of $750 for AAPL. With overshoot (overbought) and 7:1 split (the public
buying), you would reasonably get to $800.
As to your second question, the purpose of P&F charting is to take the TIME element OUT of charting.
So no, there is no time frame for that 785 target. In fact, were AAPL to have a 20% correction (starting
now), you would see the Bullish Price Objective change to a Bearish Price Objective quite rapidly.
The price targets are set when a stock turns up or down and are dependent on how far the price reach
before retracing.
As I have said before, I use P&F charting mainly to spot support and resistance prices.
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