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New Apple iPhone Trade: No 1 Analyst Reveals Strategy

Steve Milunovich is one of the most followed analysts on the Street in part because he’s been ranked the #1 IT hardware analyst for 12 consecutive years by Institutional Investor.

And during a live interview on CNBC’s Fast Money Halftime Report he says if history is any guide, the way to trade Apple ahead of the new iPhone launch is fairly straight forward.

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“Looking at other iPhone introductions, the stock tends to trade in a range before and then just after the introduction and then it takes off. Our guess is that is going to happen again.”

Although it’s unclear when Apple will launch the new iPhone 5, ISI analyst Brian Marshall tells us he thinks it’s coming in October.

That would suggest investors looking to trade Apple's new iPhone 5 should hit the buy button on any meaningful pullback.

And make sure you have an exit strategy.

That's right - although Milunovich thinks Apple has upside in the near-term, other commentary suggests it would be a mistake to put shares in a drawer and forget about them.

He compares Apple to Alexander the Great in that Apple is building an empire -- albeit a consumer electronics empire -- and empires don't last forever. “Eventually empires crumble," he says.

Unlike ancient Greece which spanned centuries, "every 10-15 years technology changes – as an investor you can’t get complacent,” he says.

For now however, he sees upside. “There’s still more to go. Apple is still in the middle of building that empire.” Milunovich’s Apple price target is $740.


Posted by CNBC's Lee Brodie

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Trader disclosure: On July 11, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Simon Baker is funds long ABT; Simon Baker is funds long GE; Simon Baker is funds long HD; Simon Baker is funds long MSFT; Simon Baker is funds long NKE; Simon Baker is funds long PEP; Simon Baker is funds long CRM; Simon Baker is funds long SLB; Simon Baker is funds long XHB; Simon Baker is funds long STI; Simon Baker is funds long V; Simon Baker is funds long DIS; Simon Baker is funds long WFC; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long MNST; Joe Terranova is long NKE; Joe Terranova is long AAPL; Joe Terranova is long NXPI; Joe Terranova is long WFM; Joe Terranova is long MAR; Joe Terranova is long EMC; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long GIS; Stephanie Link is long DD; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is long XLU

For Steve Milunovich
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided: AAPL
Within the past 12 months, UBS Securities LLC has received compensation for products and services other than investment banking services from this company/entity: AAPL
UBS AG, its affiliates or subsidiaries beneficially owned 1% or more of a class of this company`s common equity securities as of last month`s end (or the prior month`s end if this report is dated less than 10 days after the most recentmonth`s end): AAPL
UBS Securities LLC makes a market in the securities and/or ADRs of this company: AAPL
UBS AG, its affiliates or subsidiaries held other significant financial interests in this company/entity as of last month`s end: AAPL
UBS AG, its affiliates or subsidiaries has acted as manager/co-manager in the underwriting or placement of securities of this company/entity or one of its affiliates within the past 12 months: IBM
Within the past 12 months, UBS AG, its affiliates or subsidiaries has received compensation for investment banking services from this company/entity: IBM
UBS AG, its affiliates or subsidiaries expect to receive or intend to seek compensation for investment banking services from this company/entity within the next three months: IBM
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided: IBM
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-investment banking securities-related services are being, or have been, provided: IBM
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided: IBM
Within the past 12 months, UBS Securities LLC has received compensation for products and services other than investment banking services from this company/entity IBM
UBS Securities LLC makes a market in the securities and/or ADRs of this company: IBM
A U.S. based global equity strategist, a member of his team, or one of their household members has a long common stock position in International Business Machines: IBM

Ric Deverell
Nothing to Disclose

For David Strasser
Janney Montgomery Scott LLC currently acts as a market-maker in the securities of BKS
Janney Montgomery Scott LLC intends to seek or expects to receive compensation for investment banking services in the next 3 months from BKS
The research analyst is compensated based on, in part, Janney Montgomery Scott's profitability, which includes its investment banking revenues.

For Steve Milunovich
Pending

For Faisal Kahn
Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of CVX
Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from CVX:
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s): CVX
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment banking, securities-related: CVX
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment banking, non-securities-related: CVX





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