Apple is reported to be planning on selling as much as 1 billion euros in bonds, the company's first-ever non-dollar denominated bond. That may sound curious given that Apple has one of the largest cash hoards in the world – $155 billion as of the most recent quarter – but the company is expected to use some of those proceeds to fuel its massive stock repurchase program. And with rates even lower in Europe than they are in the U.S., Apple may have found a way to buy back stock for even less.
"I think this is a brilliant move by Apple," said Gina Sanchez, founder of Chantico Global. "You are borrowing in a currency that is likely to get weaker [the euro] and you are paying it back in a currency that's going to get stronger [the dollar]," Sanchez said. "Using the proceeds to buy back stock will pump up the stock price."
However, the technicals are saying the stock has gone just about as far as it can go, at least for now, according to Steven Pytlar, chief equity strategist at Prime Executions.
He sees shares as having made two consolidation phases after which Apple's stock rallied. "Purely on a technical basis, we have liked Apple a lot," Pytlar said.
The problem, though according to Pytlar's chart work, is that its most recent move up may soon run its course. That is because the range of this past summer's consolidation range projects out to an area between $115 and $120 per share, he said.
"When it hits a technical projection, it puts us on alert that the stock could run out of momentum," he said. "Buyers are getting a little exhausted, maybe looking to take some profit."
Pytlar is more cautious as the stock trades closer to his projected range. "It is still a very strong company and we would continue to be positive longer term," he added. "But right now, given the technical developments, we would be more neutral."