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!

Apple Getting a Double Push Upward

NEW YORK (TheStreet) -- What's happened to Apple (AAPL) over the last two trading days is significant.

Apple announced a Sept. 10 event at the opportune time to thwart technical weakness related to a post-dividend selloff.

Because of this product announcement leak to All Things D and USA Today, August is tracking much better than the May dividend precedent and a snowball effect is occurring on the heels of a strong post-earnings rally.

When a stock surges against the odds of expected technical weakness, it sends a strong signal to traders that a breakout is under way. Under typical circumstances of the last 10 months, Apple was expected to drop to 430 this week.

Instead, the stock was up 13 on Monday and is up 7 on Tuesday. The August run to $500 is tracking ahead of schedule.

In the Wild West of the blogosphere, it can be difficult to identify which news is market-moving and which news is irrelevant. For Apple, only two fundamental news items matter. The first is nicely summed up by AppleInsider in an article titled "Low-Cost iPhone Predicted to Boost Both Apple's Margins & International Sales."

We heard this same analysis from Morgan Stanley's Katy Huberty three months ago; now we're hearing it from ISI's Brian Marshall.

Marshall speculates that the new iPhone 5C will have 40% margins, which compare favorably to the June quarter tally of an overall gross margin of 36.9%. He believes the 5C will prove crucial to Apple as it improves overall margins and drives market share gains.

China Mobile has 740 million subscribers and Japan's NTT DoCoMo has 62 million subscribers, and neither carrier currently offers the iPhone. That should change with the 5C.

What is Marshall's price target on Apple?

Same as ours: $600.

The next time someone tries to tell you that the iPhone 5C is bad for Apple, just tell them to look at the stock action from September 2012 to September 2013, when Apple wasn't offering the 5C. Obviously Wall Street wants a low-cost option in the iPhone family.

1 of 2

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 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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