“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.]