Thursday, January 24, 2008

AAPL is down. Cramer is in doubt. BUY!

Apple computer (AAPL) is down huge after earnings report and "weak" guidance. Jim Cramer is cautious about the stock. Last time such combination of events happened in May-July 2006. It was a huge buying opportunity. I think it is now, again. Stock trades at future P/E 21.56 and PEG 1.24. It's a buy!

Would I buy more? Apple is a biggest position in my portfolio, even at a current price, so discipline says I shouldn't. But situation is so tempting...

Apple can go even lower, so due diligence should be observed (buying in stages).

Full disclosure: at the time of publication author had long position in AAPL. Positions can change at any time.

Disclaimer: This article is not intended as an investment advice. Every person should make her/his own investment decisions based on all available information and advice from her/his own financial advisor.

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