Why you should buy Apple stock now

“Apple (AAPL) is currently experiencing one of the worst sell-offs it has faced in the last decade,” Timothy Pereira writes for Seeking Alpha.

“In this article, I will attempt to provide many reasons why the company’s growth story isn’t over and why the stock should be bought at these levels,” Pereira writes. “Reasons for this include that recent growth worries are likely temporary, declining margin fears are overblown and manageable to the extent they occur, new product categories are coming, and that Apple is best positioned to continue to take over new product and service categories as much of the world’s gross domestic product becomes tied into the mobile Internet — and thus transformed and disrupted.”

Pereira writes, “Unless Apple’s profits and free cash flow are going to shrink going forward, the company’s shares are cheap. They are priced at 10 times trailing as well as expected fiscal year 2013 earnings and roughly 7 times after extracting cash and securities on reserve in addition to the earnings from those holdings.”

Much more in the full article here.

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]

22 Comments

  1. All this could be maybe. But we will never know as long as the hapless, clueless Tim Cook continues to report to his office at Cupertino. So, flame on all you blind followers of the past, but with every passing day, you know I’m right. Hurts like hell, doesn’t it?

    1. pp,
      Maybe you would like the recently fired Retail guy to come back and take over??? Cause, you know, he was so smart and all. /s

      PS, I think I heard your mom calling.

    2. Actually we will know. People will be able to compare the stock price 6 months or a year from now and then compare it with what the author has said in his article.

      Your rationale, well there is none, it’s just gone beyond the trashing of Tim Cook and now onto the trashing of those that flame you around here blah blah blah and those comments around “you know I’m right hurts likes…”

      You get flamed not because of what you say, but how you are saying it. This post sir reeks of that of a cyber bully, a vengeful one who seeks to promote an idea and use it to hurt others. It isn’t “I’m glad some of you are realizing that Tim Cook needs to go.” and rallying a community around you, it’s the post of someone who is seeking to bully and ostracize themselves.

      There are consequences to that.

      Oh, and the stock is back up to ~$460. It never hit $400 as some predicted but it got very close.

      It looks indeed like we will know as Tim Cook will more than likely be at the helm for some time longer. A little word of something to consider. If Apple stock goes back past it’s $700 high and if Tim Cook is still CEO at that time and if you continue your singular topic monologue, you will have lost all credibility of what you have said on this topic and will be left with nothing since I can’t recall you posting much on anything else.

      There was someone else like that on this site, went by the name of Zune Thang. That handle doesn’t post here anymore.

      Just to let you know.

      Good day, to you. I do hope you consider what is being said is still meant as a friendly gesture. You can still express an opinion without getting a flame crowd but you are pretty close to the point of no return.

      1. Tim Cook’s capabilities aren’t based on stock price. He and his employees just need to continue building and perfecting technology.

        I fancy that ppeterson is actually an ex-Apple employee who is teed off that he wasn’t Apple material.

      1. Good point. Look how long it took S.J. to achieve historic greatness. Every great leader must endure the slings & arrows of their detractors. Tim has his share, but it means that like Steve, he’s doing things HIS way by drowning out the distraction. Give the man some (Tim) time.

    1. Who would you suggest replace him? What has he done wrong? It is not his fault that the courts refuse to enforce and continue to delay justice. Without competition incorporating iOS copyrighted features, there Apple would have continued a ear monopoly. Steve would not have been able to change the outcome of the courts.

    2. What a joke, he is kicking ass. You must work for Samsung and not like the fact that Tim cook makes your ass hat of a company of also ran copy cats look bad.

      1. Twilightmoon,

        Wow, so right on. These samsung trolls are so bad it just shows. Course looking at their hardware and lack of customer service… I can imagine.

        Just a thought.

  2. My concern is this: Tim Cook, Phil Schiller, Jony Ive and Bob Mansfield have been working together for a long, long, time. I don’t believe for a minute that Steve Jobs was the ideas man behind everything, he was the pitch man and none better. Tim Cook isn’t a pitch man. And superficial pitch men is all Americans can relate to. Samsung did NOT release an iPhone killer. Neither did Nokia, Blackberry nor Microsoft. SO, the next iPhone killer will be the next iPhone. The bad news in the market is just classic tactics getting people to sell off and take a profit, then get on the ride again. I cannot believe Steve Jobs gave his job to someone he thought would ruin things. Cook has presided over record sales and record product coolness. It’s easy to say he sucks but if you do, you wouldn’t have the first clue of what you were talking about.

  3. Apple:

    We are experiencing technichal DDificulties, that amount to no more than a hiccup on the radar of our well planned course to the moon and beyond.

    As Steve said : In the long run you will be rewarded handsomely.

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