With the proper accounting in place, AAPL now has a trailing PE of 19. The fastest growing PC, mobile computer maker, and a company growing EPS north of 25% a year is trading with a multiple less than 2o.
All I can do is smile.
I already own the name, and will enter more. I think now is an interesting point for an initial entry. (assuming anyone is interested)
The market looks to want (or need) to capitulate before a real push upward is seen. Apple will no doubt be hostage to that capitulation. But in the mean time, while waiting for this capitulation to take place, there appears to be strength within AAPL, GOOG and GS to which I do not see them breaking there recent lows. AAPL may not break 192, GOOG may not break 520 and GS may not break 148.
If you want to be hedged, buy AAPL with Puts against the market. As the market capitulation takes place, close out the puts and keep AAPL.