While Apple (AAPL)’s commitment to return $100 billion in stock to investors has helped establish a floor for the ticker around the $400 level, StockMonster‘s Guy Adami explains on CNBC’s “Fast Money” what will get him back into a stock that has fallen by as much as 40% from all-time highs.
“It gave you a head-fake because you had that initial pop after earnings, but here at $430 or so – I hate to be wishy-washy on this one – now it’s got to prove itself,” he said. “I think it’s got to close above $450 in a somewhat meaningful way over a couple of days or so for me to get interested once again.”
Apple stock, which currently trades at a very reasonable PE multiple of 11x FY 2013 earnings, closed up $12.92, or 3.1%, at $430.12 per share.
Meanwhile, OptionMonster‘s Pete Najarian when asked about whether Apple is still a wait and see kind of trade, said: “I think it’s still wait and see. But I also think it’s still a buy as well. I think there are opportunities in front of Apple.”
Najarian also said that Cupertino’s announced stock repurchase plan was positive.
“That’s something that definitely supports the stock from the downside,” he said. “I think any move toward $400 you’ve got your put in place right now because I think the company steps in and buys the stock.”
As long as the stock holds above $420, you are in good shape, Stuart Frankel’s Steve Grasso said. “I don’t think the headwinds are completely out of the way, but I think it’s tradable. I think you ride this thing back up to $500.”
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