If you have been following this stock at all you may be a little precarious as to this stock recommendation.  The stock is up 70% on the year and 18% in the last two weeks alone.  Despite this run up in the stock price we see major upside potential in the stock.  Apple shares closed Friday at $144.67, the highest level since September of last year when the stock was in the middle of a massive decline of more than 50% in just two months.  With improving economic conditions and growing consumer confidence, Apple should continue to beat earnings expectations on a regular basis and beat out the competition.  The latest challenge to Apple is the Palm Pre.  The Pre, which launched on Friday, is being called the biggest threat to the iPhone thus far.  In spite of this competition and looming smart phone battle, Apple shares have risen as investors are looking for further innovation to continue to keep Apple at the top.

Investors may get what they are looking for tomorrow at Apple’s World Wide Developer conference.  Although the conference is said to be just an expo to show off their latest iPhone and future Mac software, many are expecting a new iPhone.  Here at Fiscal Frenzy, we expect the same.  The most impressive rumor thus far about the new iPhones is not any hardware or software feature that is incredible, but the possible price of the new phones.  Many are expecting two low memory phones with the selling price of $99 and $149 respectively.  If Apple were to have these two phones with this price, they would dramatically increase demand for their coveted phone and sales would sky rocket.  Earlier in the week a Morgan Stanley analyst said a $50 price cut from the current $199 would increase demand 50%, while a $100 price cut would increase demand 100%.  If these numbers are even somewhat accurate, they are astounding.  Because Apple is likely to release a new iPhone tomorrow, we at Fiscal Frenzy think that despite the current rise in the share price it is still a buy and could surge to $180 a share or higher by the end of this year due to drastically increased profits.