http://www.marketmatador.com/2007/11/13/apple-trading-violently-time-to-buy-shares/ Analyzing Apple / Mac (AAPL) Rumors and News Tue, 18 Nov 2008 09:28:53 +0000 http://wordpress.org/?v=2.1.2 http://www.marketmatador.com/2007/11/13/apple-trading-violently-time-to-buy-shares/#comment-730 Dan Tue, 13 Nov 2007 17:16:34 +0000 http://www.marketmatador.com/2007/11/13/apple-trading-violently-time-to-buy-shares/#comment-730 I'm currently invested in Apple, but I am tentative on whether or not there is as much room for further appreciation as you seem to imply in this post. Yes, I can see a bounce and rally back to previous highs (which I'm waiting for) but I'm not sure that there is much more room beyond that. If one assumes that a company's forward P/E ought to trade near its longterm earnings growth rate, Apple is in line for P/E contraction should its earnings grow at any rate under 30%. I'm not sure that buying Apple at this stage in its stock's cycle would warrant a strong longterm position. Maybe as a short term trade. I’m currently invested in Apple, but I am tentative on whether or not there is as much room for further appreciation as you seem to imply in this post. Yes, I can see a bounce and rally back to previous highs (which I’m waiting for) but I’m not sure that there is much more room beyond that. If one assumes that a company’s forward P/E ought to trade near its longterm earnings growth rate, Apple is in line for P/E contraction should its earnings grow at any rate under 30%. I’m not sure that buying Apple at this stage in its stock’s cycle would warrant a strong longterm position. Maybe as a short term trade.

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