Gerald Allaye-ChanApple IncAAPLTOP PICKMay 29, 2009

The current rally is a delayed response to their new iPhone launch. Maybe the phone is worth $2,000, and maybe have the buzz going into the key holiday season. Despite current momentum, the 36x forward PE is too high. He'd add more shares under $300.

Interesting to see the reaction to the foldable phones; personally, he doesn't like them. Expensive, but for good reason. Tremendous ecosystem. With its cashflow and balance sheet, OK to pay a premium for such a leader. Chart can't get any better.

There are fears that Apple will raise the price of its next iPhone given the high cost of memory. Apple is defending their margins, but will they kill customer demand? The market isn't sure. History says the consumer will absorb the price hike.

Some predict weakness in Apple's new iPhone sales because Apple raised the price of the phone in line with the rising cost of memory. Demand will depend on the telcos--will they continue to subsidize the growth in iPhones? It could be a challenge for the telcos. Next week, Apple has to show very good progress with Siri to have a successful phone launch. If not....

Likes it, but he's selling calls on it now because price is up at the top of its range.

Not worried about it. Apple does well when everybody worries about capital spending, then doesn't well when there are worries Apple is not spending on AI. Whatever's in vogue.

Sat out the capex buildout, relying on owning the end consumer. Time will tell if this was the right strategy. Massive service industry, with margins above 75%. The default stalwart when investors get worried about AI capex debt. Really good brand and margins, best share buyback program ever. Market's still trying to figure out where it fits in the AI ecosystem.

A great company. Good long term stock. It will likely break out at some point, but will consolidate first

Since March, he's bought this 6 times and it kept moving higher. It's up 26% since the June 25 low of $273. It is losing near-term momentum, for sure, and is vulnerable to a deeper decline. When it does, the stock will pause, and he will continue to buy more, because this is the Mag 7 stock that will stand above the others.

Free cash flow is large and it pays a 3.5% dividend, better than peers. You need a stock like Apple to contrast with the high-beta semis stocks.

With Apple, there are always fundamental issues--manufacturing, chips, China, competition--which heat up as the PE rises, now 33x. If you're overweight Apple, they reduce their holding until the market climbs on the bandwagon when Apple is cheap and people load up. It always happens. She is happy to hold.

He sold half his position. It was frothy at $330 going into earnings. There's margin pressure from the rising costs of chips going into their new iPhones. While others were saying that Apple finally was going AI, he's still waiting. If you have an oversize position, takes some profits. But if your average cost of $15 and you're long term, then you'll pay a mighty big capital gains tax. Doubts this will fall back to $200. The fundamentals have not changed. Overall, the chart moves up with ups and downs. If this falls to $270, he's back in. Now, it's too expensive at 33x PE. He'd add at 25x PE though doubts we'll reach that.

Huge runup, she took profits. Great job building one of the strongest ecosystems in the world. Last quarter was strong. Warned that margins in coming quarters may be pressured by higher memory costs and supply constraints. Still playing catchup in AI.

Still likes it, but sees better value in companies that are building AI infrastructure rather than buying it. Be patient.

He sold half his holding yesterday before earnings, because this was priced for perfection after a tremendous run. Still trading around a rich 35x PE. Also, they suffer price increase on chips from Qualcomm. Apple still makes up 6.5% of his portfolio.