The Apple Inc.(NASDAQ:AAPL) stock has corrected nearly 10 percent
from the high it had hit on September 21, the day its iPhone 5 was released on
store shelves for sale.
Analysts have been cautioning investors about the stock and the
general consensus (with some exceptions) seem to be that Apple's growth
momentum is slowing down and it will no longer be growing at the scorching pace
that it did all these years.
Now TheStreet.com's Jim Cramer had added his two penny's worth and
said that the stock has not yet peaked and investors can buy it at the current
levels.
On Tuesday, Cramer, in a note said that the 10 percent depreciation
in the share price of the most valuable company makes it a compelling Buy
story, especially before it releases the sale figures of its iPhone 5 and
before it launches its iPad Mini.
"We think this is a buying opportunity for the long term — a
10% discount for a company trading at 10x, excluding cash, with a very strong
product profile that just enjoyed a record launch with 100% growth in preorders
for its iPhone 5. Apple also has strong upcoming products in the iPad mini, for
the new refreshed iPad and for the eventual iTV. The company also commands huge
cash position at $120 per share."
He said that the iPhone 5 was having supply constraints - due to its
component suppliers - while demand was not a problem as evidenced by the fact
that stores were running out of stock and were not able to keep up with the
demand for the device.
Apple shares were rather volatile in trades on Tuesday, fluctuating
between positive and negative territory before eventually closing down 0.4
percent at $635.85.
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