Contrarian Says Buy Apple (AAPL), Sell Blackberry (BBRY)
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Price: $294.30 --0%
Rating Summary:
45 Buy, 29 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 1 | Down: 4 | New: 14
Rating Summary:
45 Buy, 29 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 1 | Down: 4 | New: 14
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Contrarians are talking about an exciting new pair trade this morning, buy Apple (Nasdaq: AAPL) sell Blackberry (Nasdaq: BBRY). The idea was put forth by Growth Avenue Asset Advisors. Analyst C. K. Narayan said the thinks the rally in Blackberry is over. He also notes a decline in negativity around Apple.
"A blockbuster of a product can mean a change in direction for [Blackberry]. This does not seem to have happened as can be seen in the various tech reviews of the new phone," said analyst Narayan. "We believe that the rally in RIMM is more or less over and if the response to the phone is not as per expectations, the stock could go down to test its all time low."
Regarding Apple, Narayan said, "While the stock of Apple has been bullish from 2009 onwards, the sharp rise came after the breakout above 420 levels in late 2011. The recent correction has brought the stock back to its breakout zone and it seems that markets aren't showing much of negativity at current juncture."
Narayan thinks the mean reversion has ended and both stocks will now move toward their original trends.
"A blockbuster of a product can mean a change in direction for [Blackberry]. This does not seem to have happened as can be seen in the various tech reviews of the new phone," said analyst Narayan. "We believe that the rally in RIMM is more or less over and if the response to the phone is not as per expectations, the stock could go down to test its all time low."
Regarding Apple, Narayan said, "While the stock of Apple has been bullish from 2009 onwards, the sharp rise came after the breakout above 420 levels in late 2011. The recent correction has brought the stock back to its breakout zone and it seems that markets aren't showing much of negativity at current juncture."
Narayan thinks the mean reversion has ended and both stocks will now move toward their original trends.
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