By Philip Elmer-DeWitt
June 13, 2011

What investors want to know is whether its stock will ever pop

The investors who follow the ups and downs of Apple’s AAPL share price on The Mac Observer’s Apple Finance Board often look with a mixture of envy and dismay at the price-to-earnings ratios of Amazon (81) and Netflix (76). Apple, by comparison, seems downright cheap with a trailing P/E of 15.57.

Yet Amazon AMZN and Netflix NFLX are trading very close to their respective price targets as reported by Thomson Reuters. Apple by contrast, is nowhere near its consensus target of $450.

It’s a situation Jeff Fosberg, who posts on AFB as Mercel, interprets optimistically in the chart above. As he sees it, Apple’s share price is a coiled spring, ready to pop like a Jack in the Box.

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