I wouldn't short it just yet, but it might be time to take some profits. Apple stock has everything going for it at the moment, but the price is getting out of hand.
The white-hot speculation in Apple (AAPL) shares continues to intensify. The price topped $600 a share briefly two weeks ago, ahead of the release of the new iPad, and regained that territory on the March 19 news the company would pay a dividend and buy back shares.
Quite frankly, since I have not been too interested in individual short positions (or non-money-printing-related long ideas), I haven't spent much time focusing on Apple. However, a recent question from a subscriber to FleckensteinCapital.com about what I thought the company might be worth caused me to examine it more closely.
Has Apple bitten off more than it can chew?
I am sort of embarrassed to admit how shocked I was to realize that Apple has gained almost 50% this year, and, of course -- given its heavy weighting -- that is a big reason the Nasdaq ($COMPX) has done as well as it has. And since the Nasdaq has been strong, Apple's momentum has probably spilled over to help boost the price of other shares as well.
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Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
ABOUT BILL FLECKENSTEIN
This column is a synopsis of Bill Fleckenstein's daily column on his website, FleckensteinCapital.com, which he's been writing on the Internet since 1996. Click here to find Fleckenstein's most recent articles.
[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
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As the devil-may-care bravado of Wall Street marches on, history warns that -- in the end -- there will be the devil to pay.
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