Would a large screen iPhone 6 make Apple a buy?

Would a large screen iPhone 6 make Apple a buy?

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Would a large screen iPhone 6 make Apple a buy?

Would a large screen iPhone 6 make Apple a buy?
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Small fortune: Why history tells you to buy small caps now

It's the rumor that won't go away: Apple is said to be releasing a large-screen iPhone 6 as early as September.

Apple isn't saying a word about it and its late CEO Steve Jobs once said no one would buy a big phone. But, that was before Apple had a deal with China Mobile and its 767 million subscribers. In China, smartphones often double as tablets given the high cost of both relative to the country's average salary.

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Steve Cortes, founder of Veracruz TJM, thinks a large screen iPhone is just one of many reasons to buy Apple's stock.

"In this case, I think size matters," says Cortes on CNBC's Street Signs' Talking Numbers segment. "Apple has its own version of the 'Rocky' movie franchise; there are so many sequels now. But, I think that the iPhone 6 will be the most significant because of the size issue."

Outside of a potentially larger-screened iPhone – and though he believes Apple's rapid growth days are behind it – Cortes thinks the company's financials are a reason to own the company's shares.

"It is still a cash-generating machine," says Cortes. "You only pay 11 times next year's earnings and you get the kicker of a dividend yield of 2.3%. So, I am a big fan of Apple."

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However, John Kosar, Director of Research of Asbury Research, is not as optimistic for the time being.
"I'm not so sure I want to jump into the pool right now," says Kosar. "The stock is overbought on a monthly basis."

Kosar is paying attention to the stock's 200-day moving average, currently at $502.

"My inclination is to wait a few weeks. Wait for a pullback towards $500 – you have some major support there around $502 – and then watch for that stock to get a little traction again and then enter. I think larger picture, we take a run at those highs at $583 to $595."

To see the full discussion on Apple with Cortes on the fundamentals and Kosar on the technicals, watch the video above.

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