With analysts making predictions about how far up ($1,001, $1,200, $2,000) and down ($527) Apple’s stock can go, and further to our ‘should I buy Apple shares’ story yesterday, we have taken a look at a couple of reports today that give further advice about buying and selling Apple shares, and one that suggests selling Apple to buy Facebook.
Forbes examines Boxing Volatility. Contributor Clem Chambers illustrates what he describes as “a solid tool because it creates a signal based on price equilibrium, volatility and the changes that mean a re-pricing is underway.”
Clem states: “It doesn’t matter how many crystal balls you have it’s hard for a trader to know what is coming next, especially in stocks that have gone vertical”.
He says that the boxing tool is “a good way to ride such rockets and decide when best to jump off.” Wait until the fall is “well established because shorting is a game of percentages and if the stock falls through the bottom of the box, time will still be on your side,” advises Clem.
Also on Forbes, contributor Nigam Arora, recommends ditching Apple and buying Facebook shares. He writes: “The probability is very high that Facebook will beat Apple hands down where it counts–return on investment–and that Facebook stock purchased in the IPO may beat the return on Apple over the next four years.”
Arora writes: “Facebook is in the very early stages of monetization. Facebook has a very long runway ahead to generate hyper growth. In contrast Apple is a mature company. The days of hyper growth for Apple are numbered.”
Arora also notes: “If Facebook’s stock reaches $150 and Apple’s stock reaches $1,000, Facebook investors will enjoy a 427% better return.”
Apple co-founder Steve Wozniak has revealed that he is planning to buy Facebook shares in the IPO on 18 May.
Facebook is hoping to raise $11.8 billion in its IPO – the biggest offering for an Internat company. There are 337.4 million shares being offered to the public at $28 to $35, giving it a market value of around $96 billion.
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