This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Buy Apple Stock at a 10% Discount

NEW YORK (TheStreet) -- Stephanie, Apple has declined about 10 percent after hitting a 52 week high in September on a lot of different concerns. Do you think that the selloff has been overdone, or do you think there's more to come?

Stephanie Link:
I think at down 10 percent the stock starts to get very attractive to buy again. If you could tell me that I could get a 10 percent discount on a company that is going to grow double digit earnings, and revenues, with the product cycle story that they have, and they just announced preordered growth for their iPhone 5 was a 100 percent. They can't make them fast enough. That's a pretty good story in my mind along with the huge cash position that they have, and again the product cycle story.

Lindsey Bell:
The supply constrains for the iPhone 5 are certainly going to impact this quarter, but that should also benefit the fourth quarter. Do you think that management could guide up for the fourth quarter because of this?

Stephanie Link:
No. I actually think that Tim Cook, CEO of Apple, will continue to be conservative. You know this company always lowers guidance. I think you have to look at the September and the December quarters for the iPhone in general. I think you could come up with, realistically, 60 to 65 million units in total iPhone units for both quarters, and that's very impressive. Now the iPad also could have some upside, we'll see. It depends on when the iPad mini comes out. But you know you've got these great products headed into the holiday season, and yeah sure, we're probably going to get that conservative guide. So if the stock continues to be weak, I think you have to be buying it.

Lindsey Bell:
And you mentioned the cash position of about $120 per share. What do you think they are going to do with that, if anything?

Stephanie Link:
You know I think I would be happy if they just continued to plow it into R&D and take massive market share from all of the other players. I think there's still a long ways that they can go in terms of growing market share in this phone market and in keeping up their dominance in tablets. We'll see what happens with the iTV. So it's okay if they don't have this massive buy back, or they don't split the stock which is also being speculated. To me it's all about products. This company has got it, and I think that's why you want to own it.

Lindsey Bell:
And so buy it at a 10 percent discount.

Stephanie Link:
Absolutely.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs