Looks Tempting

I have to admit that shares of Apple (AAPL) are starting to look attractive. The stock has come down a lot, but this is still an incredibly strong business. I think investors are getting understandably nervous about this holiday season.
The company said to expect Q4 earnings (ending September 30) of $1 a share. However, the company always low-balls its forecasts so it can say that it beat forecasts. My quick guess is that Apple will probably report about $1.15 to $1.20 a share.
The concern is that Apple will come out with a lousy forecast for 2009, and the market will think that it’s not low-balling. Even if the company only grows its earnings-per-share by a little bit, the current price won’t be a bad entry price. I wouldn’t bite just yet, but an $80 share price would be hard to ignore.

Posted by Eddy Elfenbein on October 2nd, 2008 at 9:46 am

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