southbeach

Can You See Apple Under $60?

Apple is a decent company with some good products. Still, it´s been overvalued for some time - the user/fan/Jobs premium is alive and well. Expected dividend payments from the stock in the next 5 years? $0. Mmm, nice. The market was full of amateurs (and some pros too) just imagining the logic free valuation of Apple would take it through $200 and beyond. This Bear has teeth, that's for sure, but the problem was with Apple's pumped valuation. Now the cheap money steroids have been confiscated, it could easily drift down to the low 50s. Still, it could hit 100 again in a few years (2-3). In the meantime, a lot of fairly inexperienced investors (and hey, I've taken a bath on some finance stocks too) will become seasoned investors - hard lessons though. Apple could hit $40 a at trough, and I'd say its a reasonable buy there.