This Day On The Street
Continue to site
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

Apple Can Grow to $500 in the Second Half of 2013

The stock continued to move sideways to down to a low of $385.10 into April 19, 2013.

I began to track the bottoming process for Apple and on April 22 wrote Will Apple Sour a Mixed Earnings Season? In this post I profiled Apple pre-earnings along with six other key stocks reporting that week. I followed up with Apple Ripens as Amazon, Starbucks Set to Report on April 24. Apple's first quarter results included a beat on the revenue line. The earnings reaction was quite volatile. The stock surged from $406.13 to nearly $430.00 in after-hours trading and gave up these gains by 8 p.m. The stock opened at $393.54 on April 24 and rallied to a close of $405.46, ending the day with a key reversal.

On May 6 I wrote Caterpillar, Apple Ratings Peeled To Hold. With Apple downgraded to hold from buy the stock was no longer a value play. Apple traded as high as $465.75 into May 7 and has been moving sideways since then, as the bottoming process continues.

Apple is currently rated hold according to ValuEngine with fair value at $502.00, which makes the stock 14.0% undervalued in a market where 71.3% of all stocks are overvalued.

The daily chart for Apple ($431.77) has declining momentum with the stock just below its 50-day simple moving average at $435.06. The 200-day SMA is declining at $515.32. The chart pattern is trying to form an inverse head and shoulders bottom with support around $419.00. My annual pivot is $421.05 with an annual risky level at $510.64.

My conclusion is that if the stock market continues to rally in the second half of 2013, Apple should reach $500 once again. Such would be a return to an annual level at $510.64 as a pivot and on a reversion to the mean of the 200-day simple moving average.

Chart Courtesy of Thomson/Reuters

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.03 -0.71%
FB $105.41 -0.31%
GOOG $748.15 -0.02%
TSLA $229.64 5.22%
YHOO $33.16 0.61%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs