After reaching its peak at $700 late last year, Apple has plunged over 40% in the past 7-8 months to as low as $385. Judging by its price action in the past few months, I think Apple has seen its bottom and is accumulating energy for its next move. And I think Apple is ready for a potential explosive move to the upside in the later part of this year into next year. There is quite a strong bullish momentum behind Apple. I just list a few of them:
- Apple will soon introduce a cheaper model of iPhone for China and Indian. This will crash the competition from other smartphone companies and re-establish its dominating position in these two biggest smartphone markets.
- As indicated by Apple's CEO, Tim Cook at the latest earning call, a series of new products will be introduced later this year into next year. This may include iWatch, iTV, and iCAR.
- The sentiment for Apple has never been so depressed at the moment. This often occurs at the bottom for a stock.
- Technically though the price action of Apple stock is bullish and start to show an upward trend.
- Apple has an extremely cheap valuation, with a huge cash hoard.
- You can bet that Apple will grow its dividends substantially in the years to come
All these are bullish factors for Apple and I think the introduction of a new product will likely to be a catalyst for an explosive move. Take the opportunity to accumulate Apple shares and you won't be disappointed if you have a long-term investment timeframe for Apple.
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