If I were a fund manager, I certainly would be adding Apple to my basket of stock picks this quarter, especially with earnings release right around the corner. With the market going our way and almost guaranteed profitable quarters as far out as one can see, Apple seems undervalued by years of stigma as a loser stock. MacWorld San Francisco has done a lot to change that perception and, of course, colored our world in rainbow iMac hues to boot. We'll soon be into a price territory where we can all happily speculate on when the stock split is going to occur. Perhaps we're at that point you often see in a successful company's history when a sea change of investor opinion takes place and suddenly everyone wants a piece of the coolest action in town.
Institutional investors are like sheep, when the flock shifts direction they all turn together.
Apple looks like a particularly green pasture just now. It's hard to tell what you look like to others. As an Apple investor most of us have seen this turn around coming since at least last fall. The iMac, OSX, QuickTime 4.0, Yosemite and the G4, we know all about them and their positive indications for future growth above and beyond the industry average. But there are billions of dollars out there sitting in over priced equities that are ripe for profit taking and looking for a new fast growth home.