Icahn and APPL

Xander12

Newbie
6 0
If you've been under a rock this week,

APPL's sp increased 6.67% (Fri's $502.33 close_Tue's $470.94 open) in the days following Carl's disclosure of his stake and intentions to bully the firm into turning over some of their $147bn worth of cash and marketable securities to shareholders.

Options volume was also 3 times the average on APPL the same day he disclosed (764k calls vs. 344k puts). Most of the volume seems to be short term speculation; the most active contracts were the August $480, $475, $490 and $500 calls.

How would you guys try to play this (if you would at all)? The $3.05 quarterly divs could be nice if you decided to take an outright long position on the stock w/ 1 or 2 yrs horizon. APPL owners really got pummeled over the last year, but sales are still outstanding; robust numbers like the 31.5mm phones sold last quarter should tame the market's view & hinder the kinds of selloffs we saw in 2012, assuming the numbers continue to be strong.

What do you guys think?

Alex.
 
M

member275544

0 0
If you've been under a rock this week,

APPL's sp increased 6.67% (Fri's $502.33 close_Tue's $470.94 open) in the days following Carl's disclosure of his stake and intentions to bully the firm into turning over some of their $147bn worth of cash and marketable securities to shareholders.

Options volume was also 3 times the average on APPL the same day he disclosed (764k calls vs. 344k puts). Most of the volume seems to be short term speculation; the most active contracts were the August $480, $475, $490 and $500 calls.

How would you guys try to play this (if you would at all)? The $3.05 quarterly divs could be nice if you decided to take an outright long position on the stock w/ 1 or 2 yrs horizon. APPL owners really got pummeled over the last year, but sales are still outstanding; robust numbers like the 31.5mm phones sold last quarter should tame the market's view & hinder the kinds of selloffs we saw in 2012, assuming the numbers continue to be strong.

What do you guys think?

Alex.

H&S reversal
 
M

member275544

0 0
you looking @ May - Jul with Jul breakout?

August breakout but you get the picture..attached
P&F gives a target to challenge the previous highs of 700. But then what would you fundamentalists know?! :LOL:
 

Attachments

  • Apple H&S.png
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Atilla

Legendary member
19,463 2,879
I have APPL dropping to anywhere between $50-80.

That Icahn geezer is trying to talk it up before dumping his stock because APPL is well exhausted imho.

iPhones - People happy with their iphone 3-5s. Future releases limited.
iPad - Sales well down.
SmartWatches - nobody's buying as more of an irritant nerdy stuff than practial fashion item
SmartTVs - already out - so what's new
iPay - so many different payment mechanism already in place so how much market share will it take? questionable. Nothing to stop card payers producing apps for Android.


So much hype.

Same goes for FB and TWTR...

Sell the hype - pretty much over-valued and no new technology not already out there...

As I say Icahn is desperately trying to talk up market before getting out him self.

Reasons to be careful. Beware! (n)
 
Last edited:

Vinayak1000

Junior member
38 1
I have APPL dropping to anywhere between $50-80.

That Icahn geezer is trying to talk it up before dumping his stock because APPL is well exhausted imho.

iPhones - People happy with their iphone 3-5s. Future releases limited.
iPad - Sales well down.
SmartWatches - nobody's buying as more of an irritant nerdy stuff than practial fashion item
SmartTVs - already out - so what's new
iPay - so many different payment mechanism already in place so how much market share will it take? questionable. Nothing to stop card payers producing apps for Android.


So much hype.

Same goes for FB and TWTR...

Sell the hype - pretty much over-valued and no new technology not already out there...

As I say Icahn is desperately trying to talk up market before getting out him self.

Reasons to be careful. Beware! (n)

Great post! Agree with you a 100%. Carl Icahn has been trying to use publicity to reinvigorate interest in Apple stock. And it actually seems to be working for the time being. The price did pop up over the past few days. But with talk of the price heading to $60, how long is all this going to last?
 

Atilla

Legendary member
19,463 2,879
Wait for the earning season to complete. Give it till after xmas. :rolleyes: :whistling


I also reckon when it does drop they'll buy back their own shares with cash they don't know what to do with.

fwiw when iphone 3, 4 even 5 came out I remember my colleagues flashing it about.

Has anyone seen a real iphone 6 yet?
 
 
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