Apple 2.0

Covering the business that Steve Jobs built

The blogger who called Apple's bottom

July 8, 2011: 7:06 AM ET

On June 17, he told readers to buy AAPL at $320. The stock took off two days later.

The stock hit a 7-mos. low on June 20

We gave Andy Zaky, an independent analyst with a enviable track record, a hard time a few weeks ago.

He had just published a report on his Bullish Cross blog (reposted on Seeking Alpha) advising investors to buy Apple (AAPL) at $320. Although his three previous Apple buy signals had proved prescient, we took some pleasure in noting that the market didn't seem to care.

Apple shares fellĀ $4.90 (1.5%) that Friday and another $9.76 (3.1%) in early trading Monday. (See Bullish Cross issues a rare 'buy' on Apple.)

We should have had more faith. As it happens, Apple hit bottom with that 3.1% drop Monday morning, the day after Zaky told readers to buy. After touching $310.50 in intraday trading -- a seven-month low -- it has been on a tear.

Apple closed Thursday at $357.20, up $37.20 (11.6%) from Zaky's $320 in less than three weeks.

Zaky recently gave Bullish Cross a makeover and put it behind a $49.99 per month pay wall. His Apple report, published two days later, was a pretty good start. "I think the evidence is getting more compelling that we've bottomed," he wrote in his June 21 market commentary, "[and] that we're going to see a major rally in July."

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About This Author
Philip Elmer-Dewitt
Philip Elmer-DeWitt
Editor, Apple 2.0, Fortune

Philip Elmer-DeWitt has been following Apple since 1982, first for Time Magazine, and now on the Web for Fortune.com.

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