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Kamikaze: Apple to $1,600

NEW YORK (TheStreet) -- When I was a youngster sneaking into Buffalo bars underage (actually, you didn't have to sneak in; they just let you in), I drank beer or one of three relatively fruity concoctions: Mad Dog 20/20, Alabama Slammer and Kamikaze.

Each of those beverages go down like old-style Gatorade. Seemingly two parts sugar, one part alcohol. I'm not sure of the actual composition, but I know this -- they're stronger than they taste, particularly for a relatively lightweight 18-year old with an empty stomach. It's called a Kamikaze for a reason -- they taste so good you can drink them like water, but, by the end of the night, you're wrecked.

There's something similar taking place again with Apple (AAPL). This bounce from $420 (nod to the stoners!) has emboldened quite a few folks. They could be setting themselves up for the emotional investor's representation of a kamikaze run.


Gene Munster was back on Tuesday with another Apple TV prediction. And, right here on TheStreet, contributor Ernie Varitimos wrote a wildly popular article stating that pursuant to a "close exhaustive technical analysis," he and his team expect the broad market "to explode in the next year or two" along with AAPL.

Price target: $1,600 by the end of 2014.

It's like the last six months or so never happened. We were all stoned waiting for the bottom that every AAPL bull now claims to have called. AAPL pops a few bucks and, all of a sudden, iTV is on the way for the holidays and we're back to $1,000-plus price targets.

With all due respect to Ernie and other AAPL bulls, did we not learn anything from Andy Zaky? Of course Zaky lost millions of other people's money -- and I presume a fair bit of his own -- by getting way too long AAPL. And how many other analysts -- pros on Wall Street -- had their clients in a bit too deep just prior to having no choice but to throw in at least part of the towel and knock price targets down?


Again, I'm not trying to throw Ernie under the bus here. I like his stuff. I'm glad he's contributing to TheStreet, but, it's certainly not out of line to say, Step back and take emotion out of the equation.

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