Apple Inc. (AAPL) or Research In Motion Limited (RIMM)? A Technical Analyst’s Perspective

Apple Inc. (NASDAQ:AAPL) has declined quite a bit since eclipsing $700 a share last fall, and it is within $35 of giving up its entire 2012 appreciation. While it remains to be seen if this will happen, it’s important for investors to consider all forms of analysis before making an investment decision. Most value-based theorists have had egg in their face thus far, and at 7.9 times forward EPS and a PEG near 0.5, they’re likely frustrated by the stock’s decline. Still, with three straight quarters without a true earnings blowout, it’s hard to expect otherwise.

Apple Inc. (NASDAQ:AAPL)

With that being said, it’s also important to consider the opinion of technical analysts, who for the most part have been bearish on AAPL over the past few months. On CNBC earlier today, Dan Wantrobski of Janney Capital Markets was on air discussing Apple’s prospects versus Research In Motion Limited (NASDAQ:RIMM). On the subject of Apple Inc. (NASDAQ:AAPL), Wantrobski had this to say:

“Well Apple has been declining for quite some time, you know, the damage has been done on the charts [...] quite frankly we think for Apple to get back on track as a stock [...] it would have to surge back above $500. So, this gives traders on a short-term basis a lot of leeway to play some oversold trades.”

Wantrobski also said that “if it [Apple Inc. (NASDAQ:AAPL] cannot hold this, we’re looking at a $390-$395 handle for secondary support on the stock,” adding “it’s no longer a market leader” from a return standpoint.

Getting to RIM, Wantrobski says that its chart “is basically the inverse of Apple,” and that “RIM has been under accumulation for a long time now.” He also mentioned that:

“The only thing we would caution against is that on a short-term basis RIM shares look overbought here [...] but quite frankly we think that chart is bullish above $15 support, and we think that could charge higher into the low mid $20s on an intermediate term basis.”

To conclude, Wantrobski said “we’d be buyers of one and we’d fade the other basically, we’d underweight Apple at this point.”

What are your thoughts about this analysis? Would you be comfortable initiating a long/short position with RIM and Apple Inc. (NASDAQ:AAPL)? Let us know your thoughts in the comments section below, and for more related coverage, continue reading here at Insider Monkey:

Apple iPhone Market Share Data, 2012

A Bearish Look Back at 2013 with Apple

These Hedge Funds Have Been Killed by Apple’s Selloff

Disclosure: I have no positions in any of the stocks mentioned above

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!