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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.

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