Apple shares juiced with ‘massive’ buyback

Stock up more than 13% on heavy volume since program announced

http://www.marketwatch.com/story/apple-shares-juiced-with-massive-buyback-2013-05-07?siteid=bigcharts&dist=bigcharts

 “I think the buyback’s about 75% of it,” Gene Munster of Piper Jaffray told MarketWatch of the recent share gains. “I think that’s getting investors to realize that it’s no longer trying to catch a falling knife.” 

Brian Marshall of ISI Group told MarketWatch that the buyback, if done evenly through 2015, works out to about 1.2% of the stock’s trading volume each day, which he described simply as “massive.” 

Ben Reitzes of Barclays Capital raised his price target on Apple’s shares to $525 from $465 on Monday morning — barely two weeks after he lowered it. He cited several factors in his note to clients, but added that he hadn’t realized the “relief” the bigger buyback would bring.

“As a result, the buyback’s size may help the multiple a little more than we even thought a few weeks ago,” he wrote.

Munster of Piper Jaffray told MarketWatch that his clients are now showing greater interest in Apple’s product cycle than in the stock’s momentum.

“I think investors are starting to warm to the idea of investing in the product cycle over the next six quarters, he said. 

“It is interesting that equity investors have a concern that Apple could turn into Nokia while there are debt buyers for 30-year paper,” he added, speaking of Apple’s $17 billion bond sale last week, which is helping to finance the share buybacks and dividend.