October 2, 2008 - "Is Apple a buy?"
Summary: Apple is down from 180 to 100 per share in just a few short months. A stock that is loved by everyone; is Apple now a good buying opportunity. Listen to two divergent views.
Why Apple is still going to go down?
Apple still trades at over a 20x Price to Earnings Ratio. While Apple sells great products, we are in downturn where consumers are feeling a pinch. This means that Apple too will inevitably be affected.
Conclusion:
Although Apple may be a decent long-term buy here, why not wait for it to come to a better price before buying it? There is nothing forcing you to invest. With large headwinds, it will be difficult for Apple to go up in this recessionary environment. See if you can buy Apple in the low 80's or wait for Apple to start going up in again before you buy more shares.
