Apple touches $301


  1. Jerry Doyle said:
    I predict Apple will be a $400 stock come April 1, 2021. This bounce from $224.37 on March 23 has happened in six weeks to an after hours price of $298.89. That is approximate a $75 run-up averaging a whopping $12.50 per week spike.

    There are ominous clouds on the horizon above the economic landscape. As soon as states open for business we will see a plethora of bankruptcy filings in the retail industry. To follow will be a superabundance of filings in the hospitality, transportation, entertainment, tourism, service, oil/gas, industries, all having an ancillary deleterious economic effect in local communities that then will domino to local and state governments.

    I exercised this evening at our local airport located on the grounds of a former US Airbase. The passenger parking lot was about five percent filled. Normally it is overflowing. The terminal looked deserted. Not even a car parked inside.

    Senior managers and employees learned during the pandemic to become comfortable with telecommuting. Many CEOs will be forced to look for methods to reduce operating expenses. One method is to unload tens of millions square feet of office space across the country for workers whose jobs are appropriate for telecommuting and cut significant degrees of business travel through holding virtual meetings. We all have talked about during this for decades. It took a pandemic to prove to us that we can go there. I’ve heard numerous CEOs on business channels already discussing to do so.

    I noticed that our airport rental car companies’ parking lots were full of rental cars. A quarter mile down I passed a second huge lot filled with brand new cars. I saw a young lady with a note pad going from car to car. I asked her about all the new cars. She responded that they were for the rental car companies who had ordered them from our local car dealership.

    I listened earlier today to a segment on CNBC that Florida Based Hertz Global Holdings Inc. had reached last-minute forbearance and waiver agreements with its debt holders to buy time to deal with a humongous liquidity crunch. Hertz has until May 22 to sort out a problem when it stopped making payments on leased cars.

    Bloomberg News reports that Hertz is preparing to file for bankruptcy. As we exchanged pleasantries and said our goodbyes I asked candidly, “… Are you sure (they) will take possession of these cars?”

    It took a few seconds for my question to set-in. When it did, the young lady’s face went “slack-jaw.”

    There is an economic domino effect to come. I wrote earlier today of a quote I read this morning: “…. Interesting seeing so many people trash Buffett because he’s not bullish. He’s not the fourth-wealthiest person in the world because he doesn’t know what he’s doing.” The quote was in reference to Warren Buffett’s Saturday comments sounding an extremely cautious investment siren on overall market conditions.

    The FED, Treasury and the US Congress have thrown an unprecedented historic amount of stimulus into our economy that now is levitating the markets on an extreme sugar high.

    To exacerbate matters states are rushing posthaste to reopen for business in the midst of COVID-19.

    It is expecting too much to believe that folk are going to return to the old normal. Some entire industries are going to be blindsided by the “new normal.”

    There will be a market pull-back. To be explicit, it want be to retest the previous market lows as long as we know the FED has our backs; but it will be significant to kiss current stock prices goodbye for a period.

    If there is a company I pray to be invested in during the coming economic tsunami, it is Apple, Inc.

    Apple will do just fine, although I do believe it will be impacted negatively when that tsunami rolls ashore on the economic landscape.

    Apple, though, will bounce back quickly as it already showed us it can do. We will be at $400 by April 1, 2021.

    May 5, 2020

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