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Shares of Apple (AAPL) are dropping hard on Wednesday after a research report speculated that the company will lose iPad market share. There was also a rumor that trading margins on AAPL stock have increased at one clearing firm. Apple (AAPL) has been on an amazing run and is now seeing some profit taking. Apple (AAPL) will have support at $540 and a close below that level would be bearish.
In my opinion, you can throw all the bad news you want at Apple (AAPL) but the stock is trading at just 12 times trailing earnings and 9.5 times 2013 earnings. Wall St is now pricing AAPL at an absurdly cheap valuation. The company pays a 2% dividend and has $122 billion in cash. Buy with confidence below $550.
Also see - Top Stocks 2013 - Top Gold Stocks 2013
