Wall Street finally realizing that Apple is horribly undervalued?

“Apple Inc. as a ‘value play?’ Seems counter-intuitive to think of a company trading at better than 20 times next year’s earnings as a “value,” but maybe–just maybe–the Street is coming around to the idea that the growth and potential of this company seem horribly undervalued,” Jim Goldman reports for CNBC.

“The latest to join the Apple ‘party’ is Citigroup analyst Richard Gardner who put Apple on the firm’s ‘Top Picks Live’ list yesterday, Citi’s top picks of 59 stocks that show the greatest potential for growth. Despite the steep sell-off recently, Citi maintains its $212 target. And because of the steep sell-off, Citi says Apple offers enormous value right now,” Goldman reports.

“Apple shares are off 37 percent so far this year. The stock is inching back as the clouds on Wall Street begin to dissipate, and the Apple story re-captures a kind of clarity missing these past few months,” Goldman reports.

Full article here.

The clarity of Apple’s story was never obscured for those not easily blinded by the rather transparent manipulations of others.

27 Comments

  1. Looks like the big hedge funds are starting to get back in. Now they will run the stock to about 250 before they smash it and run it up even higher. The pattern continues. For those with iron nerves, you will make a lot on the way to $600 a share. I am in. May the force be with you.

  2. from ‘Uh Oh’. Here’s the answer:

    Steve’s obsession with ‘great products’ that have run their course.

    It’s not the fundamentals, or the horde of cash, or the glitz of plastic and aluminum – it’s all about serious investors looking for serious companies for the long run.

    Apple doesn’t look like such a company right now.

  3. Apple has one trick up it’s sleeve that it has held on to for a very long time, which is gaming. Right now, they aren’t a gaming company at all. There are very few games on Macs, none on the iPhone and a couple on the iPod. If they just add flash to the iPhone, you now have one of the most powerful gaming devices on the net that will instantly have multiplayer gaming. Mind you, not mind blowing graphics, however a flash game would take a fraction of the power of a 3D game.

    Throw in a GOOD video card on a MBP and you now have the best gaming laptop available. If/when they pull the trigger to bring gaming to the Mac platforms, they’ll generate a ton more income.

    The other thing they need to really push is AppleTV (which is a horrible name btw). If they can get the rentals going, add simple internet features to the AppleTV like IM and Skype and Email and make the iPhone the remote for the AppleTV, it would make it a way more desired piece of hardware.

    The one poster does have a good point, Apple needs to expand it’s products eventually, rather than continuously upgrading what they already have. It has been the debut of new products that have driven up the stock, rather than upgrades. I’ve held on through the huge drop, (though, in retrospect, it would have been better to sell off and then rebuy), but I think it’s safe to say Apple will climb back up with the amount of cash they have and their ability to reinvent consumer products.

  4. Todays price will look like it was a gift when it’s back up at 250…

    And then we’ll say ‘we knew Apple was set to do well and capture a substantial slug of the computer/handheld/phone/movie rentals/music businesses’.

    Why didn’t we sell the house…bangs head against wall!!

  5. Down another $2 and change as I write this.
    LOL.

    And MDN must think it is a conspiracy theory behind the drop of Apple stock!
    Double LOL.
    MDN – u think maybe Al Gore is shorting Apple stock because he is going to become a member of Bill Gates` bored of directors???

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