Back last June 2015 with Apple Inc trading at 128 I observed
that AAPL had built a triple top on a point & figure chart. I also commented
on the new Dow Jones component jinx because when Apple Inc was added to the
DJII March 2015 a move suggesting that Apple was in transition from a growth
stock to a value stock. In other words – the great Apple 2001 – 2015 growth
period may be over. Some past DJII growth to value stocks - Cisco Systems added
in June 2009. Bank of America and Chevron added in February 2008, Intel and
Microsoft were added in November 1999. In contrast Honeywell was dropped from
the Dow in February 2008 and subsequently has doubled in price.
Our chart – an undated monthly of Apple Inc displaying
the progressively shorter stock price growth periods – from May 2003 to Dec
2007 twenty times. From March 2009 to Sept 2012 six times and from August 2013
to May 2015 only two times. In other words in order for Apple to repeat the
2003-2008 growth window the stock price has to go from the current $100 level
to $2000 over the next 5-years. Don’t shoot the messenger
.
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