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We don't want you either own apple or on the funds -- indices that half apple was part of -- so is apple rotting or is now the time for you to take a bite out of the stock.
We decided to bring in two top experts Colin Gillis BGC partners senior technology analyst.
Richard Anthony BGC partners managing director and head of equity derivatives and -- would -- if they let you off the trading floor to that guise of refugees say but we're thrilled they did only we have always for Fox Business think he's so much.
People not exactly tripping over themselves in China -- places where you know they've been.
Google unite for all apple products what is going on here is -- a massive meaningful shift here.
It the competition has definitely arrived for apple right -- you're seeing.
Competitive lower priced products coming out of Samsung coming from Amazon coming from Google.
And you think about apple for them to achieve -- scale that people are talking about and the maintain the price points and the margins that's going to be a difficult thing and the concern is is that China's one of the fastest growing markets for Smartphones and apple is.
Not taking the share that many people and OK so that the Chinese are over at for the moment what are they buying is it and it says it is 288 an android unity in the explain it -- at tax Eric Schmidt -- chairman went so far to say you know that the platform wars over right now and -- want.
And if you like I outlet and a three out of -- activate north of a million handsets today three out of four phone sold and -- the android operating system so.
It as prices come down.
This is that situation topless what's your call on the stock right now so I've got a hold rating on -- -- -- price target and our target on as -- why isn't -- that the stock is into territory where we find it you know we started finding entrusting -- and it's it's.
Broken hand this is a stock that you know clearly still is going to appeal to many people it's a great games on if you want to own it we suggest -- -- Equity option OK now let's get to smarty pants equity -- -- and that is Richard Anthony we decided to pull up.
All of the names over the NASDAQ -- -- by the way down 5% over the past three months at September when apple hit its high apple down about 27%.
What other stocks would have done worse only won -- over three months in the NASDAQ has done worse than apple that's Apollo -- we put up some other names here you've got for example.
Vertex Verisign Verisign down about 24% over three months you've got Sears Holdings down 23% so really only one stock.
Apollo worse than that how do you play apple at this point Richard.
We bring up a very good point and I -- to take the lead.
My colleague and friend mr.
Colin Gillis -- respect to price targets so we have decided.
That the best play is one where we play for a gradual rise up in the shares if that occurs and moved to his price target by march.
X for a 600.
Two X the return the common by playing a strategy that we have designed for this but you get downside protection is well down to about 460.
So it's a strategy where I won't get.
Caught in the lingo.
But it's a strategy where you are essentially having a flat return for 10%.
Down -- you have exposure to the shares below.
And then you make -- more than market return on the way up from spot price tell me about the order flow from customers in apple over the past couple of days what are they saying to -- They're resisting.
It which is interstate because typically when we see this type of -- decline.
We would want to make it is an opportunity but most people are not.
Willing to stick their toes and at this point.
Let's put it in perspective stuff that's up 6900%.
Over the past ten years run it's not it's not dead -- isn't -- just listed company on any US exchange.
But its market cap is now below 500 billion for the first time in quite some time but -- out that the question then becomes.
Is this company I mean most of their products X the iPod.
Do everything all the other ones -- them.
OK just different sizes so the iPad you can talk on the phone you can take pictures you -- music -- -- -- -- found that -- Don't they have to really come out swinging on something totally different I mean what comes to mind as apple TV but I haven't seen anything on that.
You know even if they do a lot of television product and would that be enough to move the needle because the numbers are so large and and that is -- a lot of my peers are talking about you know thousand dollar trillion dollar company valuations and we were more moderate than not.
Because it does seem that the growth is slowing down it does seem that the competition this year it does seem that there are.
Good enough products that you can get at you know much lower price points and if if you think that that's the case in the games and Apple Stock are going to be more moderate.
That's why we look I -- equity options any of.