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