azza33 Posted January 25, 2013 Share Posted January 25, 2013 Its so oversold its ridiculous, at $450 it has a P/E ratio of 10. Microsoft whose stock has been flat for a decade has a PE of 15, as does IBM. Even if you assume Apple is not a 'growth' stock and sales have peaked, its share price should be 30%+ higher. That being said, the technicals are horrible, having broken every long term moving average. So even if you are a potential buyer, like me, there is no reason to buy it right now. The trend is definitely down for the near term. I'm keeping what I got, and if I see a strong 10% up move I might buy more, but now is not the time. Agree is massively oversold.... However Apple have advised the market that they are going to release more regualar "accurate reporting going forward". So they decided to advise they expect a 17% drop in profit next quarter.... Hence the market action.... the historical P/E muiltipe (10) is not relevant anymore. They also say they are slashing iphone 5 numbers behind the scenes... perhaps an indication the market isn't that phased about the model... or perhaps a newer iphone is due to arrive shortly along with an ipad mark 5... you guess is as good as mine. Quote Link to comment
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