Why Buying The Dip In Apple Makes Sense Before Earnings

By Hawkinvest:Tech investors can be very tough on a stock when a company reports disappointing earnings results. The pattern happens all the time whereby a company misses on earnings, investors dump the stock for at least a couple of days and then frequently (but not always), the stock rebounds as the selling pressure fades.

Aswath Damodaran, NYU's legendary valuation expert, recently argued that there was a 90 percent chance that Apple was undervalued.  This comes in the wake of Apple shares' breathtaking plunge from recent highs.

By Hawkinvest:The stock market correction has led to some new buying opportunities for investors, and the tech sector could be one of the best places to start picking up bargains. A number of tech stocks have seen substantial drops and now trade at levels even value investors could find compelling.

By Hawkinvest:The fears of a European debt crisis and a possible disorderly Greek exit from the eurozone has caused a sizable market correction. This recent wave of risk-off selling pressure has brought down a number of solid stocks in the tech sector. In particular, it makes sense to consider tech companies that offer dividends and a valuation that is compellingly cheap. Since the markets are volatile and many investors are running scared, it is an opportunity to buy cheap now.

By Hawkinvest:Apple, Inc. (AAPL) has had a great run over the past few months, but unless you are investing for the very long-term, now might be a great time to take at least some profits. The stock has just hit the $600 level, thanks to plenty of good news which includes the recent launch of the iPhone 4S, the latest iPad, the announcement of a dividend and share buyback.

By Hawkinvest:Chipotle (CMG) shares were trading for "just" about $300 in late November, but in a short while, the stock has almost gone parabolic and it is pushing $400. I have heard many analysts talking about Apple (AAPL) being too expensive now, but Chipotle makes Apple stock look like a bargain!

It has been a little over a year since I wrote that Apple Stock Can Easily Reach $450 last January, which at the time was more than $100 above where the shares were trading. Thanks to an absolutely stunning fourth quarter earnings report, Apple pierced that level late last month and closed yesterday at a new high of $464 per share. So, where to from here?

Steve Reitmeister submits:After a stellar +26% gain for the S&P 500 in 2009 the market is set to post a solid 12%+ showing in 2010. Even with the strong profits already in hand, most signs point to more upside in 2011. Here are the top fundamental reasons for the rally to continue for a third straight year.