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Buy Apple Before Next Buyback Blasts It to $800

Stocks in this article: AAPL BBRY CHL

NEW YORK ( TheStreet) -- I'm not going to bore you with another Apple (AAPL) article paying tribute to the great company. Our praise is meaningless.

With 51 million iPhones sold in the most recent quarter, iDevices are everywhere. By contrast, BlackBerry (BBRY) sold 3.4 million. And when it comes to tablets, Apple is the only one making any money. The company has amassed $160 billion and cash. But everyone volunteers their opinion of how CEO Tim Cook should spend it. Heck, even without Apple's cash the stock would still be valued over $500.

So it's a little surprising that Apple's stock looks as cheap as it does. When Carl Icahn used the term "no-brainer" to describe Apple stock, he wasn't just blowing smoke. Tim Cook listened, and announced several weeks later that Apple had repurchased $14 billion of its stock.

After Apple stock dropped 8% on the company's January quarter earnings report, Tim Cook told The Wall Street Journal that said he was "surprised" by the decline, saying he wanted to be "aggressive" and "opportunistic." But if my suspicions are correct, Cook is going to have a few more opportunities to spend, and in ways that can only benefit long-term shareholders.

Apple will report fiscal second-quarter earnings this month. If you've watched the patterns that I have, Apple's stock has tended to decline following an earnings release, regardless of whether the absolute numbers are good. Guidance has (according to some) always disappointed. Chances are, they may "disappoint" again.

But after each plummet, the shares have bounced back, including a rise from $398 to Wednesday's close of $542.55. Tim Cook has remained aggressive with is share buybacks and dividends. Despite criticism, Cook has owned up to his promise of returning cash to shareholders.

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