“Life has proven time and time again that ‘all good things come to an end.’ Apple (AAPL), which has suffered a 45% decline since reaching an all-time high of $705, is no exception,” Richard Saintvilus writes for TheStreet. “That said, as an Apple shareholder and an unabashed ‘fan-boy,’ I can say (as objectively as I can) that this degree of ‘over-correction,’ which suggests the company was spiraling down BlackBerry’s path towards irrelevance, was irrational, if not complete nonsense.”
“Investors who constantly cite Apple’s profitability as cause for the company’s decline should also keep this argument in the context of many peers that would kill for Apple’s level of profitability,- even on the low end,” Saintvilus writes. “While Samsung wins in volume, ask its executives if they wouldn’t love to switch places with Apple. If you understand anything about business, their responses should be predictable. Along similar lines, investors should be encouraged that part of Apple’s softer margins this quarter was (in part) due to an increase in research and development spending.”
Saintvilus writes, “Now, given that the stock has bounced up almost 15% to $442.78 (Tuesday’s close) since reaching $385, I’ll be the first to say it — Apple has bottomed. With a weak third-quarter already expected, investors have to feel good that the worst is over.”
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