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Sunday, May 4, 2014

Is Apple still a buy?

Apple has shown its explosive move lately and is close to $600 now. I have talked about investing or trading Apple probably a dozen times in the past. I hope you have got in at around $450 when I thought it was likely its bottom at its last correction.

Now, at a price of $600, is it Apple too expensive to buy? Well, it is definitely not as good as when it was $500 or $450. But from its valuation perspective, Apple is still rather cheap. The recent very strong earning report has demonstrated its capability to make money, tons of money! I expect Apple will go beyond $1000 within 1-2 years. With this expectation, buying anything which can safely double is not really expensive. I still like Apple tremendously at the current price. Given its recent swift moving-up, it may likely come down a bit but I don't expect it will drop below $550. Buying Apple at its weakness will be a great long-term investment. And even better, reinvest its dividend to make yourself very rich in the long run.

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