I was definitely too early to jump for Apple (AAPL). I started to establish my AAPL positions when it plunged from $700 to $600. A bad timing! When AAPL was over $700, everyone was excited about it and talking about $1000 Apple. You could hardly find any analyst who was bearish about AAPL. Now, AAPL is flirting with $500 per share; it dropped below $500 briefly yesterday. Suddenly you can hardly find any analyst who is bullish about AAPL. People are simply running away from it. What a few short months can change of everyone’s opinion. I’m just amazed!
I don’t know if this is the bottom for AAPL or not and I’ll certainly not be surprised if AAPL continues to decline for a while. But let’s face it. AAPL is fundamentally cheap in terms of its valuation (P/E is just 11 times its past year earnings for such a great company) and AAPL has a huge pile of cash (over $100 B) in hands. Although AAPL is facing more and more competitions, I don’t think AAPL is suddenly losing its edge over its competitors. At some point, value investors will step in to pick up AAPL. I’m starting to craft my plan to get into AAPL again by forcing others to pay me while I’m waiting for buying AAPL at $400. I just cannot believe no one will be interested in AAPL if it indeed plunges to $400, another 20% drop from the current price. Of course, I’m not predicting AAPL will go to $400, but just a worst case scenario for myself that I will have to buy AAPL at that low level if the Apple world is totally crashed.
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