“I’ve got to admit that Apple is starting to look somewhat interesting to this deep value investor,” Jonathan Heller writes for TheStreet. “I’m not sure we are quite there yet, but it appears as though the growth crowd may be throwing in the towel. Many loved the stock at $700, at $600, and again at $500, but not so much at $400 and below.”
“That’s one of the fascinating aspects of the markets and investor psychology; they’ll love you until they don’t, warranted or not,” Heller writes. “Is the April 2013 $400 Apple materially different than the September 2012 $700 Apple? Has the story really changed that much? Or is it the classic oscillation between greed and fear; where investors push stocks higher than is deserved on the upside, then push them lower on the downside?”
Heller writes, “Yes, the lines between growth and value sometimes blur, and investors will turn on formerly popular names quickly and aggressively. I saw it happen with eBay a few years back, when that stock got cheap enough to buy, and the rewards were handsome. So, Apple, I’ve got my eye on you. Where it stops, nobody knows, but I’ll be waiting. The company is expected to report earnings Tuesday. I rarely pay attention to one quarter’s numbers, but with such intense scrutiny of the name, it could be an exciting day. Consensus estimates are for revenue of $42.66 billion, and earnings per share of $10.12. Anything less could provide some fireworks, and perhaps a nice overreaction.”
Much more in the full article here.