This is an opportunity to buy Apple

“Warren Buffett had said ‘Be fearful when others are greedy and greedy when others are fearful,'” Alec Eiber writes for The Motley Fool. “This may be the perfect example of Buffett’s quote put into practice, buying when others are fearful.”

“Let’s look at the facts: Since 2008, Apple revenue has grown 380%, net income has grown 760%, operating cash flow has increased 430%, and Free Cash Flow has grown 370%. Apple is the epitome of a growth stock, and the Street thinks the growth is over. I think it isn’t,” Eiber writes. “In Apple’s recent quarterly release, CEO Tim Cook hinted at new products in software and hardware in the fall. Short-term investors may be disappointed with the fact that no updates will be released until then, but long-term shareholders will see the stock react to the new innovation.”

Eiber writes, “The stock is beaten down and the Street is fearful that the company won’t be able to innovate. If history has told us anything about the company, it will continue to innovate (Cook has already said they have products in the works) and the stock should rebound.”

Read more in the full article here.

21 Comments

  1. It seems entirely more likely that the street wants us to think the growth was over so people would sell and drive the prices down, so that they can then start pumping it up again.

    1. Dividend increase, buyback, WWDC, product refreshes, new product releases…: All 2013 Apple product that obviously still draw unprecidented loyal Apple fanfare…

      Who cares what the Street and the shills want anyone to think?

      Time for a reality check.

  2. Not one thing is different in Apple’s product lineup than when Apple was trading under $400 and the only creativity announced from Cupertino is that they are unwisely taking on debt in a scheme to avoid taxes. Meanwhile, Apple’s share of the smartphone market and their margins continue to slide, yet the shares are now sneaking up close to $450/share based upon nothing more than speculation and blind faith.

  3. Here’s a better time to buy AAPL: When Tim Cook has been replaced. No, come to think of it, that is the ONLY time to buy AAPL. The gains you are seeing this week will be wiped out whenever (1) Tim speaks again and/or (2) when Apple announces its next over hyped and minimalist “upgrades” to its gadgets.

  4. I can’t believe it. The P/E ratio is in the 10.5 range. Maybe it won’t hit 8 after all. Anyway, I’m not getting giddy because I don’t have much trust in the stock market. If Apple slowly climbs up to $500 over the next few months, its OK. I’m getting nice dividends and I see that Apple actually is trying to put some value back into the company. It’s a shame they have to do it this way and Apple’s revenue and profits aren’t enough. I’m not looking to fire Tim Cook if he can straighten things out with iPhone manufacturing and sales. I’m not looking for a fast bounce. A steady climb is good enough. Big share price jumps scare me.

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