The market has been down lately... especially on Tech Stocks.
Today, AAPL closed 15.33 down off it's 52-week high. Over 4% drop from the high and from today's range, almost broke the 5% pullback.
I think it's time to get in on AAPL.
Here's why:
1. Close to 5% pullback.
2. WWDC 2011 is coming up in June where Apple is expected to release it's new OS (Mac OSX Lion). Also, the iPhone 5 might make an appearance (although highly doubtful per analysts and sources close to the matter).
3. A version of the iMac just came out with 2 Thunderbolt ports.
4. The white iPhone 4 finally came out and on WWDC, Apple would probably announce how much white iPhone 4's they sold.
5. RIMM is bringing Black Berry Messenger (BBM) to Android and iOS. This might convince BB users to finally switch to iOS or Android. Either way, AAPL will have a greater profit margin since they control hardware and software distribution of the iOS devices.
6. Analysts and project AAPL to reach $400 in the next few months.
Therefore, I took $1000.00 from my reserves (which I will not do often) and put in my new Automatic Investment Plan (to be executed on Tuesday, May 10). I put in $750 for AAPL which would buy me 2.13 shares (@$350/share + $4 fee). The $140 will be used to buy LULU that would fetch me 1.44 shares (@$94/share + $4 fee). LULU is down 9.33% off it's 52-week high of $102.83. A great way to buy some more LULU ahead of it's expected 2 for 1 stock split and Annual Stockholder's Meeting. Finally, I allocated $110 to buy 2.94 shares of XLNX (@$36/share + $4 fee). XLNX has bee rebounding lately and the X-Dividend date is coming up (May 16). Might as well get those juicy dividends.
I know with my AAPL purchase, I may have 2 tech stocks and would unbalance my diversification. However, with XLNX rebounding and the dividend distribution coming up, it makes good sense to keep XLNX and AAPL is also a great long term investment.
I will review my opinion of XLNX after the dividend distribution and earnings call.
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