Amazon

[Grieve]

Okay, here's another try. Really good article on Forbes about this. I've heard these arguments before, but usually not so well put.

http://www.forbes.com/sites/darcytravlos...=yahoofeed

Basically, funds have a limit of how much money they can have invested in any one stock (typically 3-5% of total). Right now, most large funds (e.g. Fidelity and Vanguard) have hit that limit, so they can't buy more. And the crazy thing is, as Apple goes up in price, the percentage value in their portfolio increases, so they HAVE to sell. Which explains the long periods Apple spends in trading ranges. And also explains why the stock went up a lot after the dividend announcement (opened up more funds who can buy).

But right now the only way the stock can really go up is if hedge funds and retail investors (us) buy it. One way Apple could facilitate that is to do a stock split (making the stock "look" cheaper).

It does make a rare advantage that the average investor has - mutual funds CAN'T buy any more, even though the stock is undervalued, but we can.

I still believe the stock hits $1000 next year (if not before). Keeping my call spreads...