Time to Buy Apple Inc?

Apple Inc - Large Logo

The analyst and blogging community is screaming Buy Apple, is it finally time?

Apple Inc (AAPL) shares have backed down 13% after hitting $644 and its time to consider the ultimate tech play.

Apple shares appear 'cheap' to the naked eye trading with a P/E Ratio of 14 and EPS of 41.  Today Apple shares are standing their ground, steady at $568 and finally a credible analyst i saying its time to buy.  That would be RBC Capital analyst Amit Daryanani who said yesterday: "We believe the recent pullback on AAPL’s stock creates an attractive entry point for investors to benefit from AAPL’s ability to sustain material revenue and EPS growth over the next several years". The case is believable as Amit points to four big points in Apple's future:

1.  iPhone 5 launch this Fall (Sept/Oct)
2.  Macbook refresh later in calendar Q2
3.  Potential Apple TV launch (could it be iTV?)
4.  Sustained momentum for the iPad in the June quarter and beyond.

Mastery likes that Apple is just getting started selling their iEverything products in China.  Recall that $7.9 billion of the company's $39.2 billion revenue last quarter came from China.  The companies entire revenue taken from China in 2011 was just $13.3 billion. Its not just America that want Apple products, its the rest of the world.  Who knows how much Apple's revenue will be in 2012 from China as there is intense competition and rip-off artist galore in the East.

Bottom line: Just going on the four talking points from RBC Capital is enough to make us consider taking a chance while Apple shares trade below $570.



Apple is a market maker...not a "me too" knock off artist.  Those that cover the tech stocks should know something about BYOD and the impact that Apple will have on the Enterprise market...the sour puss Wall Street types only care about their bonus so promoting or bashing the stock is all part of the game....you wouldn't buy the stock if you didn't think you could make money....would you?

It's ALWAYS the time to Buy AAPL The fundamentals are that brilliant. It will reward you, and will be the "best bet" in the market for some time to come.Only the talking head naysayers try and find reasons to "dislike" this once-in-a-lifetime story, and they're usually just cranky because they've been too thick to miss this opporunity as they've been playing contrarian to AAPL since it passed $100.

Apple is a falling knife? Seriously? The market is down over 1% today. Apple is up over 1%. Is that the behavior of a falling knife?

I'm speaking of the fall from $644.

After iPhone5 they got nothin.  New MacBook??  Why?  Jobs is 6ft under and taking the company with him. 

every person here saying to sell apple has shorted a call or longed a put against the stock and trying to get some money back 

Jobs is gone but the company he built will continue to succeed through his vision, not specific designs he came up with.

When to sell?

Too late.  Shoud have sold with the insiders above $600.Apple (AAPL) Insider Sells $38.7M (95%) Of His Stake In Company  I can't post a link so just goole the title above.

Just look at the chart.  It's trading in a downward rectangle pattern.  There could be lots of addition downside.  Try catching a falling knife and you are likely to get stabbed.  It's this obvious?  Fundamentals are unreliable over the short term and unpredictable over the long term.

so basically the fundamentals, according to you, are pretty useless!

Fundamentals can be useful long term but you always have to keep a close check on them and do not rely on them alone.  You must also use at least some basic technical analysis, i.e. moving averages, or risk substantial damage to your portfolio.  For example, the author could have mentioned that the stock bounced off the 200 days moving average so there is decent support there.  IMO, it's pure gambling to buy now based on technicals or fundamentals, unless you have at least some lose mitigation plan.

Umm if you didn't notice it broke the trend today and the $577 resistance...

Not so fast.  I wouldn't consider that a break.  Look at the chart again.  It's traded slightly below the reactangle and slight below it already without breaking the pattern.  It goes to 590/600 range then yes, the pattern is broken and it's a safer bet then.BTW - I don't care whether it goes up, down, or sideways.  My point is that you must consider the technicals to enter a trade.  And to that extent, you're helping me make my case.  You think the pattern is broken, go for it.  As for me, I'm buying calls after it hits 644 again, or puts if it trades below 530 again, or a straddle or strangle if it trades in a tight pattern long enough to lower the volatility.  But I'm not gambling on the idea that APPL is a great company with great fundamentals and I can't lose money on it over the long haul.  Of yes you can.  "Buy the right stock at the wrong time and will will experience great lose." - Peter Lynch ("One Up On Wall Street")

Yeah do it because you said so! =)