Buy Apple On The Dip

Jan 28, 2016

We have been fans of Apple (Nasdaq: AAPL) for years, and view this pullback in Apple’s shares as a good buying opportunity.  For the past several weeks, reports of a slowdown in the growth of iPhone and tablet sales have depressed the stock’s price by nearly 20% since early December.  Saturation remains a key worry, updated features aren’t perceived as “sexy” as they once were, and supply chain reductions remain a concern.  However, we find ourselves in agreement with KGI analyst Ming-Chi Kuo who sees the MacBook as a key growth area for Apple. 

We are also excited about Apple’s entry into the virtual reality sphere.  The company is said to have hired virtual reality professional and Virginia Tech professor Doug Bowman to compete with Google and Microsoft in that segment.  Professor Bowman has won several industry awards for his work in virtual reality and 3-D interfaces.

With Apple’s shares trading at historically low P/E levels, we view share prices under $95 as an attractive entry point.

Disclosure:  None, but we may institute a long position within the next 48-72 hours.  We do not have a financial relationship with the company.