What the heck is going on with Apple shares?
The stock is getting whacked, without obvious provocation. Apple is down $7.50, or 2.3%, to $312.76 this morning; for the month of June to date, the stock is off around $35, or about 10%.
At a time when key rivals in the mobile phone and tablet sectors like Nokia, HP and Research in Motion are struggling mightily to stay relevant in the face of an onslaught of competition from Apple and Android devices, the stock is stuck in a rut. Apple now trades for under 13x estimated profits for the September 2011 fiscal year, and less than 11x FY 2012 projected profits. Back out the company’s nearly $66 billion in cash and investments, and the stock looks cheaper still.
For reasons I can’t quite fathom, investors seem far more interested in profitless newcomers to the public market like Pandora and LinkedIn than they are in the single best technology company extant.
I realize that there are some specific overhangs for the stock: unclear timing on the next generation iPhone, the threat of competition from Android, the dismaying situation surrounding the health of CEO Steve Jobs. But the stock appears to have discounted all that….Apple shares look like a blue-light special. Get them at this price while you can.
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