Apple 2.0

Covering the business that Steve Jobs built

The Apple slingshot, revisited

July 5, 2012: 5:07 PM ET

The hedge funds' favorite short closes above $600 for the first time since April

FORTUNE -- It's time once again to break out our favorite Jason Schwarz quote:

"If you can keep a good stock down then you are able to load up for the ride back up. It's like a slingshot -- the harder you pull, the more propulsion you generate."  -- Apple: Seven reasons shorts love it

Case in point: The chart at right, which shows Apple (AAPL) being propelled from its intraday low of $522.18 on May 18 to Thursday's close of $609.94, a gain of $87.76 (16.8%).

In terms of market cap, Apple has re-gained $82 billion in seven weeks, or nearly one Bank of America (market cap: $84B).

For the record, when Apple was at the bottom of that V in the chart above -- Bullish Cross' Andy Zaky called a low:

"Those who have been waiting for a correction in Apple to buy the stock," he wrote in a note to clients on May 18, "now have that opportunity to do so." (link)

It was only the fifth "buy" Zaky had issued since July 2006. After each of his previous buy recommendations, the stock reached his published target. This time he's calling for Apple to hit $750 sometime before the end of January 2013.

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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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