Analyst: Enough With the Apple Fascination!

Apple (NASDAQ:AAPL) dipped under $500 again on Friday, but managed to end the day at exactly that mark after registering a 0.53 percent fall. Some say that the stock is now close to its bottom. While that may or may not be true, according to OptionMonster’s Pete Najarian, the “fascination” with buying the bottom in this stock was not a smart one. With the iPhone maker struggling over the last few days, several analysts have reiterated buy ratings on it, saying it was the perfect bargain price.

“Everybody’s had this fascination that they want to buy the bottom in Apple,” he said on CNBC’s Fast Money. “That’s not necessarily how you should be approaching this right now.”

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The analyst added that while the expectation that Apple will post a positive quarterly earnings report next week would likely come true, the motivation wasn’t enough to put money into the stock anytime soon. The bounce was still some way away. “I think their earnings are going to be extremely strong, but then what?” he asked. “I think you’ve got to look a little further out and say, ‘This is going to be a second-half-of-the-year story for Apple.’”

Joe Terranova of Virtus Investment Partners agreed with Najarian, saying that Apple was a stock that needed patience and would play out over a longer term. “I think much of the unfolding story for Apple that’s going to be known is a story that’s going to evolve in the second half of the year,” he said on the show. “Apple may just move sideways. It could move lower if earnings do miss.”

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Najarian added that there were several other companies that were better investments at the time, including some surprising names. “Research In Motion (NASDAQ:RIMM) has been on this path to the upside for a while now, and so has Nokia (NYSE:NOK),” he said.

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