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Shares of Apple (AAPL) rallied on Thursday after the stock dropped below $519. AAPL reversed $34 high before settling in the $540's for most of the afternoon. Apple (AAPL) is the subject of profit taking due to the fiscal cliff. A lot of long term investors are locking in gains before their tax rate spikes in 2013. Apple (AAPL) will have support at $519 and a close below that level would be bearish.
In my opinion, you can throw all the bad news you want at Apple (AAPL) but the stock is trading at just 12 times trailing earnings and 9.5 times 2013 earnings. Wall St is now pricing AAPL at an absurdly cheap valuation. The company pays a 2% dividend and has $122 billion in cash. Buy with confidence below $550.
Also see - Top Stocks 2013 - Top Gold Stocks 2013
