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Apple shares down over 40% since the September -- with a disappointing company earnings expected -- develop next Tuesday.
-- -- shareholder to do now joining us we've got.
Scott cancer with S&P.
Capital IQ thanks for being with a Scott.
I thought that's now I imagine that you just like the rest of the world on Wall Street probably still.
Has a buy on apple.
I actually have a strong buy recommendation on apple -- and how long have you had that strong -- would you put that on it it's we actually -- to strong by November or so that was not a good call but without a buyer recommendation really for the better part of the last four years yeah and now apple traded below 400 dollars for the first time I think since December 2011.
And -- you've got a price target funds of 600 bucks.
Why the faith.
Yeah I mean definitely it's been some painful -- to keep without question especially as you reference since.
September of last year I mean look it's pretty obvious that people don't really seem to very much care about.
Valuation and our balance she either cash allocation really as you referenced people are really wondering what's next.
Where the outsized growth is gonna come from.
And if apple kind of amazingly has a bright future at this point we think a lot of those questions are almost kind of silly.
When you consider the fact that you know the iPhone and the iPad continue to do quite well we're looking for double digit revenue growth for the next couple of years at least.
And you know hopefully apple provide us with some updates -- -- get people more excited about the stock at this point.
-- let's look at a problem point.
-- we've got the iPad many reports out yesterday that may be that little loved 359 dollar item isn't selling and of course we try to sell something for three and fifty bucks against.
The Kindle fire for only 200 you gotta wonder why.
Apple priced at that high he got no apple TV which we -- -- but is it a bigger problem product cycles I have an iPhone four.
I'm not gonna upgrade now to the five even though a button on my -- -- kind of broken because.
I've already got rumors of the -- five after the six.
Yeah that has been a problem for apple over the last say.
Year or so they did we thought a pretty good job of coordinating a lot of product launches in September and October ahead of the holiday shopping season.
And if you look at.
The revenue gains.
I -- 28% I think -- -- was 21%.
For the December quarter that is pretty substantial growth we think it's just that since then.
Apple is basically -- radio silent as we've seen.
A new Blackberry announced and introduced.
A new Samsung galaxy ass -- for analysis and coming to market's near you so they've really kind of been hurt not only by the lack of new -- but a lot of need -- from competitors as well.
I had always worried that a certain amount maybe 30% of Apple's large -- at the great stock was just pure love.
Blood separated from actual growth hidden and -- PE ratios.
With love and now it's as if investors have fallen out of love what can apple do that bring back -- -- Yeah I mean honestly I would think committed this point almost the next extreme which is -- -- -- -- Haiti.
I think people at this point are almost.
And pour it when they think about investing in apple at this point what -- they need to do I think they really need to do three things the first thing is they need to make sure the people understand that this is a growth story that continues.
For the next couple quarters and years at least number two they need to get people excited about the notion of innovation and risk taking.
You know Google glass has gotten a lot of attention.
But is that really gonna move the needle for the company nobody gives people a sense.
That they're doing things to kind of move for when it comes to new props and then third.
That cash distribution strategy that people -- been waiting on.
What do you did you would -- 137 billion dollars in cash people are open for more dividends a more buybacks while I didn't hear the apple.
Watch and all that the I watch as a savior for the company and I'll put a whole lot of hope and watch.
Now you know talking with apple I kind of agree with the sentiment that a lot of people have made a lot of incorrect assumptions and predictions when it comes new products the company is working on and deploying.
I think I'll just sit back and wait for the company -- kind of surprise us with what they're doing ethical watch television is more possible in some other things that we've heard about I also think the notion of a streaming radio service of some sort.
That makes a lot of sense but when -- incorporating those.
Into our forecast that this all right but given your 600 dollar price far apple iMac he'll be watching with a -- in your stomach thanks for being -- today Scott to have blood -- -- stomach and off okay.
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