This Day On The Street
Continue to site
ADVERTISEMENT
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

Carl Icahn Is Smarter Than You

NEW YORK ( TheStreet) -- Two kicks at the can, that's what investors received. However, most didn't take a swing at either one. Two chances to buy Apple (AAPL - Get Report) under the 200-day moving average.

Granted, the first was short-lived, but there's not much of an excuse to miss the second one when Apple traded two full days below the widely watched average.

Maybe the only reason to justify not buying is to believe you're smarter than the legendary investor Carl Icahn. You know he did his homework and more due diligence than you could possibly perform. The good news is it's not too late to exploit the still relatively cheap price of Apple's stock.

Bearish pundits predicting a slowdown in iPhone sales and death through margin squeeze are busy wiping egg off their collective faces. The new iPhone 5S and 5C models are breaking records with nine million new iPhones walking out the door and into iBuyer's eager palms.

While I believe Microsoft (MSFT) is currently the biggest beneficiary of BlackBerry's (BBRY) self-destruction, it certainly doesn't hurt Apple to have one fewer competitor -- especially a company that at one time dominated the space and could come back from the dead. Google's (GOOG) Android platform won't shed a tear for BlackBerry, obviously. At the same time, it's a mistake to believe the difference in revenue for Google will be greater than an accounting rounding error. In other words, no measurable impact to Google's financials.

If you look back at Apple's history, it, too, once fell from grace only to come back stronger than ever. With that said, don't expect BlackBerry to sell quickly for $9. I wrote an article that lays out why I believe $9 is too cheap.

Unlike BlackBerry, Apple's current problem is supplying the market with enough product to fill the demand. Of course, scarcity could be part of Apple's strategy to ensure continued buzz about demand. It's early to tell, but at least one gold iPhone 5S was offered for more than $10,000 on eBay (EBAY).

I looked at that auction and others on eBay and found relative "deals" closer to $2,500. If any doubt remained about Apple's dominance in the space, it left the building last week. Moving forward, investors can expect continued volatility, albeit use the volatility to their advantage.

1 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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $129.62 -2.20%
FB $79.34 -1.50%
GOOG $532.32 -1.44%
TSLA $247.46 -0.11%
YHOO $42.85 -1.46%

Markets

DOW 18,041.54 -190.48 -1.04%
S&P 500 2,104.20 -21.86 -1.03%
NASDAQ 5,032.7510 -56.6110 -1.11%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs