Long Position on AAPL @ $545.00 on 12/7/2012 (Fundamentals)

Apple (AAPL) designs, manufactures, and markets mobile communication and media devices, personal computing products, and portable digital music players worldwide. Its products and services include iPhone, a handheld product that combines a mobile phone, an iPod, and an Internet communications device; iPad, a multi-purpose mobile device; desktop computers, such as iMac, Mac Pro, and Mac mini; portable computers, including MacBook Pro and MacBook Air; a line of iPod portable digital music and media players; and iCloud, a cloud service.

The company also offers a range of software products, including iOS and OS X operating system software; server software; iLife and iWork application software; and other application software consisting of Final Cut Pro, Logic Studio, Logic Pro, and its FileMaker Pro database software. It also manufactures the Apple LED Cinema Display and Thunderbolt Display; sells a variety of Apple-branded and third-party Mac-compatible and iOS-compatible peripheral products, including printers, storage devices, computer memory, digital video and still cameras, and various other computing products and supplies; and Apple TV, a device that allows customers to watch movies and television shows on their high definition televisions.

Shares have fallen recently on concerns that iPhone sales are slowing. The last piece of data was when AT&T announced its smartphone sale figure. Furthermore, shares sold off on Digitimes story suggesting 20% Q/Q decline in AAPL’s demand for components in calendar 1Q; story has likely been “misinterpreted” as decline is to be expected quarter after introduction of new product (iPhone 5 and mini iPad). Shares are in the process of forming a "double bottom" and should head higher from the present levels.

52-Week Trading Range:  $377.68 - $705.07

Last Trade:  $545.00

Stop Loss:  $520.00

Target Price:  $601.00

Position closed on 12/14/2012 at price of $518.00 with a -4.95% loss in 7 days.

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