Barron’s: The smart investor is buying Apple

“Wall Street is aflutter with talk of Apple,” Teresa Rivas writes for Barron’s. “As analysts rush to defend or denounce the stock, chatter about the tech giant is almost as ubiquitous as its products. Yet we think the smart investor is buying, not talking.”

“‘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.

Read more in the full article here.

7 Comments

  1. As I said in another note, we are in phase 2 – bash and buy – when analysts as part of their scamming routine start to excessively bash Apple and lower sales estimates and price targets. The goal of this phase is to scare retail investors into selling shares (many of which were bought during phase 1 – pump and dump) to Wall Street crooks at fire sale prices.

    The excessive bashing and lowering of sales estimates and price targets guarantee that Apple will handily beat earnings to yield handsome returns to the crooks who steal shares from retail investors today.

    I backed up the truck when AAPL broke $500 and would buy more if it dropped further.

    1. So the street buys shares at the market price of $500 and they are “crooks”. You too bought shares at $500. Do you consider yourself a crook? Why or why not?

      1. The crooked part of it is spreading false information to drive the shares of a company either up or down then taking advantage of that move financially.

        Cramer mentioned this in his Daily Show interview. He said it epwas easy for some people to spread rumors about poor Apple sales which knocked the share price down so they could buy the share cheaply.

      2. If you fail to distinguish between investors who have done homework to uncover Wall Street scams and the crooks who perpetrated those scams, then it’s too bad. Reading Cramer’s semi confession on how to manipulate stocks is a good place to start educating yourself.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.