aDDING TO aPPLE iN THE sbm PORTFOLIO TODAY

With everybody’s favourite current whipping boy – the tech goliath that is Apple falling back towards its post 4Q result lows yesterday, and after hedging our long position with the Bear Put Spread to leave us with a short Put position at $440, we have been adding to our long stock spread bet position with nibbles yesterday around the $445 level.

We expect the stock to close the gap over $500 (at $514) at some point over the next several weeks and in the short term have a target of $480/3 – the underside of the pre results shakedown support level. Any move lower to the recent low of $437 and we will continue to add. Ex cash a shade over 6 times earnings for 2013 will, at some point, prompt value buyers to return. Plus we expect a multitide of the catalysts we think could drive the price much higher as detailed here too occur at any point – http://www.spreadbetmagazine.com/blog/how-apple-adds-20-to-its-share-price-overnight.html

The first catalyst for an increased dividend could be at the forthcoming investors meeting.