Investors confidence might be at its lowest, but Apple stock is so underpriced right now that it opens a unique window of opportunity for savvy traders.
Buying Apple shares when the price was around $700 was a mistake and those who expected the stock to soar all the way up to $1000 were dead wrong. Does that mean that investors should stay away from this company regardless of how inexpensive its stock gets? The answer is "no" and there are a handful of good reasons for why binary options traders and conservative investors alike would be right to back the giant company these days.
Reasonable Forecasts about Apple Growth
The company is regarded by many as an enigma when it comes to forecasting future growth, and many criticize its high level of secrecy. Nevertheless, there are some strong indicators that despite the recent slide, Apple is still a good buy and could restore at least a portion of its former glory. Many do the mistake of overestimating the movements in stock price and now that their shares lost more than 40% in less than a year, jump to hasty conclusions.
The truth is that Apple operates in a growing industry and has the management and organization necessary for steady growth. IPhone 5 was not exactly the innovative product that its loyal customers expected, but the company remains one of the few who has a culture for innovation. They sale the same quality products and have the ability to mass produce top-of-the-line gadgets, not to mention that their positive brand awareness makes it easier to market the latest additions. Last but definitely not least, Apple has the financial resources to implement pretty much any change they consider to be necessary, as the company seats on a heap of money and is debt-free.
Realistic Growth Expectations Keep the Stock Cheap
What happens today is the exact opposite of the events occurring one year ago, when everyone had already jumped on the bandwagon. Expectations were sky high and when the results were in stark contrast, a sudden and dramatic shift in confidence occurred. Nowadays even rumors about the next e-book prices are enough to cause the stock to take another dive, making it even more profitable to purchase Apple stock. There is an obvious discrepancy between the company's growth forecast and the attitude of investors, but this only opens new windows of opportunity for bold binary options traders.
By purchasing call options right now and setting the expiry date on medium to long term, binary options traders are taking very few chances. Occasional dips are still possible, but on the long run, Apple offers excellent support points and the risks are kept in check. Regular investors who purchase and hold onto stock have even more reasons to rejoice as Apple has increased its dividend by $1.80 per share. The pessimistic approach that most investors have is exaggerated and tagging Apple as a has-been company is a mistake while buying their stock now when it is cheap is a great investment.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.