Apple Today

Apple (AAPL 627.49) is in correction territory. Yesterday’s close was $638.17, and as I write this the price is at $627.49.

  Today there is consolidation in the name. The stock has been vertical and you’re seeing some profit taking here. There are also some negative headlines out there with Foxconn Technology Group… Headline: Apple iPhone 5 delay: Foxconn denies worker unrest slows smartphone assembly…and some minor complaints about camera scratches, causing concerns to investors in the company.

 

  This stock tends to fade slightly following a product launch, but today’s correction goes beyond a “fade” or slight pullback.

 

  The broader concerns with the economy are also not helping Apple, and arguably this stock had dropped in the past on concerns of the iPhone5, on timing and other issues.

 

  The concern right now may be tied to the iPad Mini, and investors are waiting for Apple to send out the invite. When the invite is sent out, the stock should rally. The components are being sourced in Asia, and an announcement could be next week.

 

  Production is already occurring, so the launch of the product should be with a few weeks. A big delay is not expected in terms if the iPad Mini launch.

 

 Apple will report earnings later than usual at about October 25^th. This could be to set aside time for a special announcement.

 

 

  Apple specific fundamentals are still strong, so another cause of today’s price drop may be the stock is a leader in portfolios, and profits are being taking ahead of the election.

 

 With a ten percent drop in Apple’s price this would be a good time to get in… Remember buy on weakness and sell on strength.

 

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