“‘I don’t think it’s a question of if, but when and where you buy Apple,’ says Mark Spellman, portfolio manager of the Value Line Income & Growth Fund, who sees the stock as attractive now,” Rivas writes. “‘This is a really good risk-return profile,’ he says, noting that slowing earnings aren’t as much of a concern for him, given that the shares already trade so cheaply: ‘You’re paying a very attractive price for the products you know, and paying nothing for what could be: you’re not paying anything for innovation.'”
Rivas writes, “Trading at less than nine times forward earnings, Apple looks too cheap for a company with a long-term growth rate around 20%, especially as the dividend now stands just shy of 2.1%. So we think investors should see today’s decline as an opportunity.”
MacDailyNews Note: After dipping below $500 in pre-market trading today, AAPL has since recovered and is currently up $4.47 (+0.88%) to $514.26.
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