Apple (AAPL) shares rose into positive territory a short while ago, after opening down, helped perhaps from some positive comments here and there. The stock is currently up $2.33, or half a percent, at $430.75, and rose as high as $432.96.
Doug Kass of Seabreeze Partners a short while ago fired off a missive to followers, saying he’s “going Apple picking” and that the “risk/reward scenario makes the shares ripe for a trade”:
With an extreme move in investor sentiment, shares of Apple are turning more attractive on a risk/reward basis, though they probably still should be viewed as a trading sardine not an eating (or investing) sardine. I still believe that most earnings forecasts for the company are too high (based on a more competitive business backdrop), but even if, as I fear, margins are vulnerable, this has likely been discounted at current price levels. Despite the share price schmeissing, Apple’s stable of applications and products will remain a dominant factor in the markets it serves. Investors’ disappointing reaction to the recent trends in the company’s product offerings might be transitory as the company begins to upgrade its portfolio and continues to innovate.
And Tavis McCourt of Raymond James, who has an Outperform rating on the stock, and a $600 price target, was on CNBC a short while ago, describing how he thinks the arrival of Samsung Electronics‘s (005930KS) next “Galaxy S” series phone running Google‘s (GOOG) Android, which is expected to take place at an event in New York tomorrow, may actually help Apple to the extent that it turns attention away from constant hardware upgrades.
Given that there may be little that is strikingly different in the Galaxy S IV, in McCourt’s opinion, “investors may be realizing that this is sort of played out” in terms of the smarthphone upgrade cycle. “That may turn people’s attention back to the software.”