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Friday, September 16, 2011

Apple rumors... f'm

Every day there seems to be a new iPhone rumor about something. (Heck, I even remember a rumor when the iPad 2 came out that suggested a further delay from the 3-5wk ship time, and the same day Apple's site reduced shipping to 1-3wks.)

The ridiculousness of these rumors are pretty fascinating.

All I know is this, if you look at what Apple will produce this quarter, they will have a trailing PE of 15.5 near a stock price of 430. So if we assume no multiple expansion, Apple is going to the 430 area in a month or two. (My conservative nature is making me look at 420.)  And any decline between now and then, I will be actively trading, along with maintaining a position until 420-430.

Also, as if I even need to be so obvious, I will be using any potential weakness to re-enter QCOM (and actively trade it).

With a break out, QCOM can easily test 56. (But if we remove a conservative nature, the high-end range is 58. And that is far from an un-realistic projection for the stock to meet.)

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