This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gundlach: 'Apple Really Oversold'

NEW YORK (TheStreet) -- Bond guru Jeffrey Gundlach made a prescient call on Apple (AAPL) earlier this year, saying it would go lower, and eventually hit $425 per share. Now, he has no opinion on the technology giant, but did note shares were oversold at these levels.

Speaking during his "Big Easy" presentation about central bank balance sheets and quantitative easing, Doubleline Capital's Gundlach touched on the tech giant, and where its stock is headed. "I don't have an opinion on Apple now," Gundlach said. He noted that Apple is "really oversold" in the short-term, and could go higher as its next move, but does not think Apple shares will see $700 "anytime soon."

The bond manager first mentioned that he was short Apple as part of a pair trade in April 2012, at the Ira Sohn investment conference in New York City. He was long natural gas as the other part of the trade.

Apple shares moved past $700 in mid-Setepmber, right after the company announced the iPhone 5. Since then, the stock has fallen 38.4%, compared to a 1.4% gain in the Nasdaq.

In January of this year, Gundlach said he thought Apple would retrace to $425, the level the iPhone maker was at before it started its parabolic run to just over $700. "I deeply believe Apple is headed to $425 a share," Gundlach said during a CNBC interview. "Not because I'm a bond guy or stock guy, but because I'm a market guy. I've been around for a long time and I know that when something goes vertical like Apple did from $425, once the bubble pops it goes back down to the point at which it lifted off."

AAPL ChartAAPL data by YCharts

Earlier this week, Apple shares reached Gundlach's $425 target, as perceptions about product innovation and slowing revenue growth have hit the stock.

Apple is reportedly trying to counteract those perceptions with the launch of an iWatch later this year, which could provide additional revenue for the tech giant. Apple is also likely to update its iPhone and iPad lineups later this year, with the iPhone 5S reportedly slated for August.

--Written by Chris Ciaccia in New York

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,007.35 -32.14 -0.19%
S&P 500 1,990.23 -2.14 -0.11%
NASDAQ 4,541.5420 +9.4380 0.21%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs