Certainly, part of that has to do with failing to release a killer product in 2013. But I'd much rather see Apple disappoint by releasing too few products than disappoint by releasing garbage. When the "iWatch" comes out, I'll leave the blind forecasting to others - as long as Apple is bargain priced for its existing businesses, buying is a no-brainer.
Apple doesn't have to release "the next big thing" to be a bargain right now. It just has to avoid doing something really stupid.
There is a caveat, however.
As I mentioned before, Apple's stock has been shellacked in 2013. That's got more to do with buyers and sellers of Apple's stock than it does for buyers of Apple's products. But the technicals are showing some signs of strength this month.Yesterday, I mentioned that Apple was very close to key support at $460. That's being followed up by a bounce. From a technical standpoint, this stock is starting to look a whole lot more in synch with its fundamentals. Returning Value I'd anticipate Apple to ramp up its pace of returning yield to shareholders in the form of share buybacks and dividend payouts. Buybacks are probably the most attractive of the options for a couple of reasons: first, the stock is cheap, and second, it can repatriate much of its overseas cash at a much lower tax burden if it's used for buybacks. With a very vocal shareholder in Carl Icahn asking for boosted buyback efforts, Apple has very few remaining reasons not to do just that. The bottom line is this: Wall Street got Apple wrong this week. But there's still time for investors to right themselves. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook. At the time of publication, author was long AAPL. Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation. Follow Jonas on Twitter @JonasElmerraji
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