New 52 Week High for Apple: $413.23

Sep 19, 2011
J. Webster
Comments Off on New 52 Week High for Apple: $413.23

A common question you’ll hear these day’s is: “What is up with APPL today? Every other stock is down, but they’re skyrocketing for some reason.”

With really an absence of any news, Apple’s stock hit a new 52 week high of $413.23 today. There was some talk of the new iPhone 5, Apple coming out with a TV set, and even an iPad HD, but those stories weren’t new.

It’s become almost a joke, how strong of a stock Apple is these days. Some are calling the stock it’s own sector, safer than U.S. treasuries and even gold.

”Forget gold and Treasurys, the safe haven has become Apple,” says an enthusiastic Fast Money trader Pete Najarian.

Although Najarian is being dramatic to underscore the strength in the stock, if you look at the recent correlation between the tech titan and the S&P, you might honestly think it’s become a safe haven. There’s been a clear divergence – with the S&P tumbling as Apple climbs.

And it’s a running joke just how much Apple is worth, it’s total market capitalization nearly exceeds both Google and Microsoft combined. Yes, combined. Apple is the most valuable company in the United States, with a market cap of $381.87 billion, besting Exxon Mobil, whose market cap was close to $356.6 billion.

And then there’s Apple’s cash hoard of $76 billion. What are they going to do with it? Now analysts are saying the time it right for Apple to pay a dividend or buy back shares.

Apple also falls into the category of a high flyer and a growth stock, and one that doesn’t have a high price to earnings ratio, at just 16, even though it’s a high flyer. Everyone wants to buy growth stocks, and if you have a huge pile of cash, along with an almost insatiable demand for their new products, then traders are going to load up on the stock.

Expect to see Apple keeping hitting new 52 week highs in the months and years to come. This is a stock you want to buy on big dips and forget you own. It will be a $1000 stock in five years. Oh yeah, and Steve Jobs has stepped down too, so there’s no more worries about that. Steve Jobs has built the most amazing company ever. That’s just the truth.

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