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After Big Gains, Does Apple Still Have Room To Run?

As investors grapple with the future of this rally, there’s no denying that tech has been performing remarkably well, lately.

Part of that strength comes from the unstoppable gains in Apple . In just the past month the stock has gained almost 20%.

And that may be only the beginning. Widely followed Apple analyst Gene Munster increased his price target on Apple to $390 from $371 citing strength in the iPad.

That’s a rather bold call, even from a big Apple bull like Munster, considering there’s growing uncertainty about the recovery.

What makes Munster so positive on this stock? We went straight to the source for answers.

In a live interview Munster tells the desk he thinks the iPad is about to explode on the scene.

“The iPad is the Mac of the masses. We're going to see adoption from people who can't typically buy an Apple product. We're already seeing it in Latin America and China."

On top of that he says more and more companies are following JPMorgan's lead and considering Apple products.

"We track the number of meetings that Apple has with corporate clients versus education," Munster explains. Typically 75% of those meetings are with education but now it's gone to 50%-50%".

In other words, the iPad has generated a huge spike in interest from Apple's business clients.

As a result Gene Munster now expects Apple sell 21 million iPads for calendar year 2011, up from his previous estimate of 14.5 million.

What’s the trade?

I’m a buyer, says Joe Terranova. Apple is an innovator. The one technology stock that money managers want to own is Apple.

I’m bias against this stock because of its market cap, says Anthony Scaramucci. It becomes difficult for goliath companies to move the needle.

Apple is a great company but I think they’ve come to a place in the road where they’re facing competition, muses Tim Seymour. And that’s coming from Google .

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TOPPING THE TAPE: HP

Elsewhere in tech, the traders are keeping a close eye on Hewlett Packard. Despite the down day, Hewlett-Packard also closed higher; in fact it was the biggest gainer on the Dow.

What’s the trade?

I like this stock a lot, says Anthony Scaramucci.

If you believe the S&P will hold I’d be long, says Guy Adami but otherwise I wouldn’t go near it.

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GOOD AS GOLD

Once again gold set a new record high and is now within striking distance of $1300 after weak economic data out of Europe and a jump in jobless claims weighed on riskier assets such as stocks.

What’s the trade?

As long as Ben Bernanke remains Chairman of the Fed I believe gold will go higher, says Pete Boockvar of Miller Tabak.

*Find out why. Watch the video now!

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AFTER HOURS ACTION: NIKE

In extended trade Nike surged 4% after the company posted a higher quarterly profit citing strong demand North America, China and the emerging markets.

By the numbers, the world's largest athletic shoe and clothing company said it earned $559 million, or $1.14 per share, for the quarter that ended Aug. 31. That's up from $513, or $1.04 per share, in the same quarter of the prior year.

Nike's revenue grew 8 percent to $5.18 billion, as sales improved across all its categories and all geographies but Japan, compared with a year earlier.

Analysts surveyed by Thomson Reuters, on average, expected the company to earn $1.01 per share on revenue of $5.22 billion.

Nike CEO Mark Parker said the results demonstrated the power of Nike's brand and its growth strategy. He assured investors the company will continue leveraging those strengths to navigate during the difficult economy.

What’s the trade?

The Street was expecting a good quarter but this was a great quarter, says Joe Terranova. I expect the stock to gap higher at the open.

Nike is a name and company that consumers know and trust, adds Tim Seymour. I think the stock could outperform.

For the short –term I think the stock looks a little long in the tooth, counters Guy Adami.



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Trader disclosure: On Sept. 23rd, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (GOOG); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova Owns (APA), (AAPL), (ARUN), (BMO), (C), (GS), (IBM), (HES), (JOYG), (XBI), (NBR), (NOV), (OXY), (ORCL), (PEP), (POT), (RSH), (SLB), (SU), (SPLS), (RIG), (UPL), (MA), (VRTS); Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST); Boockvar owns (PEP), (NKE)

For Anthony Scaramucci
Scaramucci and Skybridge Capital own (AAPL)
Scaramucci and Skybridge Capital own (GOOG)
Scaramucci and Skybridge Capital own (GS)
Scaramucci and Skybridge Capital own (PEP)
Scaramucci and Skybridge Capital own (RAI)
Scaramucci and Skybridge Capital own U.S. Dollars

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DLUEY)
Virtus Investment Partners own more than 1% of (DRYS)

For Steve Grasso:
Stuart Frankel & Co and it’s partners own (BAX)
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (TRV)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)

For Gene Munster
(ACOM), (LOGM), (RLOC) have been investment banking clients of Piper Jaffray during the past 12 months
Piper Jaffray expects to have (RLOC) as investment banking clients within the next three months
Piper Jaffray received non-investment banking securities-related compensation from (DRIV) during the past 12 months
Piper Jaffray makes a market in (AAPL), (ACOM), (AMZN), (BIDU), (DRIV), (EBAY), (FMCN), (GOOG), (GSIC), (IACI), (KONG), (LOGM), (MCHX), (MELI), (PRTS), (RLOC), (SINA), (SOHU), (VCLK), (WWWW), (YHOO)

For Carter Worth
***No Disclosures***

For Mark Fisher
***No Disclosures***

For Jon Najarian
***No Disclosures***

For Scott Raynovich
***No Disclosures***

For Brian Stutland
***No Disclosures***

For Allan Loeb
***No Disclosures***



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