“Kass wrote in a research note in Real Money that Apple’s shares had taken in enough pessimism about the looming fiscal cliff and a low growth rate prediction to present a real buying opportunity,” Rathee reports. “‘A discounted dividend model implies that the future growth rate in profits at Apple will be only about 5 percent,’ Kass wrote. ‘This is too low — Apple’s share price decline has likely now overly discounted most (if not all) of my concerns.’”
Rathee reports, “The analyst added that he was also ‘less concerned’ about a global economic slowdown… According to Kass, the expectations of a ‘wow’ product from the company, such as a market-disrupting television set, have now almost evaporated for the time. ‘At current prices, the next ‘wow’ product has been discounted away, and the company’s completely refreshed product line (no mean feat in such a short time frame, and if supply comes in line, CEO Tim Cook’s main goal for 2013) should be plenty enough new stuff to once again propel earnings throughout 2013,’ he wrote.”
Read more in the full article here.
[Thanks to MacDailyNews Reader "Fred Mertz" for the heads up.]