Time to Buy Apple Inc?
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.
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