Apple Inc. (NASDAQ:AAPL) stock has been trading flat since last two weeks. The iPhone giant is reportedly planning to raise more cash through a bond auction, which CNBC contributor, Guy Adami, believes could propel the stock even higher. The Analyst is remaining bullish on the stock based on past pattern study that suggests the stock could soar to the $155 mark.
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“Can it move higher? I absolutely think it can. Does that have anything to do with the bond auction? I don’t know, but pattern recognition suggests the stock goes higher from here,” said Mr. Adami.
When Apple Inc. (NASDAQ:AAPL) carried a record $17 billion bond sale in 2013, the stock was trading at lows of $55 a share. The bond sale saw the stock jump from $55 a share to a high of $130 a share. Will the same trend be replicated with the upcoming bond auction? That is the million dollar question, which Timothy Seymour does not believe is going to happen.
“To assume that it can do something close to that right now because they are now changing their religion in terms of what they do to shareholders to get capital back. I think it is absurd,” said Mr. Seymour.
iPhone refresh cycle is the only catalyst at the moment for Apple Inc. (NASDAQ:AAPL), according to Seymour. The upcoming developer’s conference is another event that should shed more light on the stock’s fundamentals according to the analyst and not the bond auction.
Dan Nathan also agrees with Seymour that Apple Inc. (NASDAQ:AAPL)’s main catalyst has always been products. The analyst believes the WWDC conference could have a huge impact on the stock going forward, should Apple shed more light on what it is working on for its next refresh cycle.
Apple Inc. (NASDAQ:AAPL) just like many other companies is forced to raise cash through bond auctions as it cannot use its billions of cash stack abroad. Long term, repatriation of the huge amount of cash overseas should act as a big catalyst for the stock according to the analyst.
Karen Finerman is also remaining skeptical on what a potential $1.6 billion capital distribution from Apple Inc. (NASDAQ:AAPL) will have on the stock. The giant smartphone is set to carry out a massive buyback and a dividend offer as it moves to increase shareholder value.
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