Daniel Del'Re
SAN FRANCISCO -- Shares of Apple (AAPL Quote - Cramer on AAPL - Stock Picks) held onto early gains amid choppy markets.
The share boost helps Apple continue to rebound from recent lows and ride anticipation that the company will soon unveil a new iPod. Apple shares have been volatile all year as investors have tried to factor the intangible buzz surrounding the iPhone, new iMacs and possible new iPods into their valuation models. Shares were recently trading up $3.03, more than 2%, to $137.11, but are still below their 52-week high of $148.92 reached in early July. "Apple's valuation is a tough call especially with the iPhone business, which is a new market and we really don't know yet how it's going to affect earnings," said Darren Chervitz, director of research for the $102 million Jacob Internet Fund, which owns Apple shares. The company has reportedly reached agreements to begin selling the iPhone in Europe. Investors have said that the company's products are catching on in developed European markets as the iPod and iTunes music downloading service has put Apple's other products in the spotlight. Apple's valuation, based on the ratio of its price-to-earnings
forecasts, seems high if the estimates are based on the company's computer business, says Chervitz.
Investors in the Cupertino, Calif.-based company currently pay about $37 for every $1 of earnings vs. $20 for the average computer maker, according to annual estimates from Thomson Financial.
RSS
