As I suggested back in January on this website, I thought Apple (Nasdaq:AAPL)
could have further to fall as growth investors and fan-boys dove off
the bandwagon in the wake of less-than-perfect execution. In that short
space of time, the shares dropped about 20%, leading to a huge loss of
shareholder wealth (at least on paper).
Apple is a curious stock to me now. I do believe that the stock is too
cheap relative to what I see as the probable trajectory of revenue and
cash flow. By the same token, I've been at this too long to
underestimate the headwinds that a stock can face when a large base of
shareholders becomes disenchanted with a story and moves on for greener
pastures. I do believe that patient investors will do better than just
okay in Apple shares from these levels, but investors buying in today
have to accept at least the risk of a further over-correction on the
downside before the shares start to perform again.
Please continue below:
http://www.investopedia.com/stock-analysis/042413/defenestration-apple-continues-aapl-nok-goog-amzn-bbry.aspx
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