Thursday, 15 August 2013

Apple's on the bounce again. 100 Billion usd gain in 48 days.




Apple is on the bounce again. An extraordinary capital gain (market cap) of 100 billion usd in a month and a half. Shares are just over 500 usd.

An average of 49 Wall Street shops, estimate it should be 525 usd.

In June, their shares were at 2011 levels so this is some ride. And not a good one because that shows both volatility and uncertainty.

They did report good numbers for Q3 (although net profit still declines) and they had a Twitter bounce from an investor, Carl Icahn, showing confidence through seeking accelerated share buy-back programs. Of course Icahn's two tweets also increased his own Apple wealth.

However, if Apple does so and uses its cash pile to buy back stock, the share price will likely extend further - with some suggesting 700 usd, its all-time high.

But with, wait for it, Apple have 145 billion usd in cash and a real strong market brand so Apple is still great and it's still innovating although not to the same extent. 

The new Iphone launch in September should further boost matters and the expected launch of a cheaper, limited IPhone will help too. Apple TV could dominate that market too.

IPhone releases have historically pushed up share values - but be careful - everyone knows that. However, things are good at Apple and just got a whole lot better in the last month and a half, with good expectations ahead. But the volatility is a worry....you can gain a 100 billion in a month but the converse applies.

With their levels of cash though, it's a long, long way to fall.