“Much time has been wasted stressing over the latest operating moves Apple might make,” Michael Nielsen writes for Seeking Alpha. “I try not to waste time analyzing company pricing strategies or product designs – these strategies can be debated infinitely and there still will not be a ‘right’ or ‘wrong’ answer.”
“I am an investment analyst, so I focus on factors that may or may not make a good investment. It does not matter if Apple makes the ‘perfect’ decision when it comes to its product strategies; all that matters is if the company is currently overvalued or undervalued,” Nielsen writes. “Of course an analyst must analyze and understand the subject company’s strategy, but the majority of his or her time should be spent conducting financial analysis – after all, he/she is a finance expert, not a VP of Software Engineering. As financial professionals we should focus on our area of expertise: valuing countries, industries and companies.”
With that said, here are the 3 reasons buying Apple is a smart trade:
1. Based on my financial models, Apple is grossly undervalued
2. The possible positive catalysts are more probable and significant than the negative catalysts
3. The risk-reward of the trade is solid
Much more in the full article here.
Related article:
Jim Cramer: These Apple jitters are for naught – February 5, 2014