Ripe for the Picking?

Tuesday, 22 Apr 2008 | 6:19 PM ET

Apple shares fell Tuesday after an American Technology Research analyst lowered his rating for the computer and gadget maker to "Neutral" ahead of the company's fiscal second-quarter report.

In a client note, American Technology analyst Shaw Wu cut his rating from "Buy," noting concerns such as the shares' valuation, the possibility that expectations are too high and the likelihood of stress on its product supply in the June quarter due to the timing of new product releases.

Apple is scheduled to release earnings data Wednesday.

Jaffray Managing Director and Senior Research Analyst Gene Munster joins the panel for this conversation. He has a very different take on Apple from the analyst cited above. Following is a synopsis of Munster's points.

Would you buy Apple ahead of earnings?

Absolutely, says Munster. They have a ton of new stuff coming. The next four months are the best product months in Apple’s entire calendar year. I would get long going into the quarter.

Plus, Apple grew their Mac business 70% year over year in March, he adds. Despite a tough economic market people still want their Macs.

What are you hearing about Mac sales?

The whisper number is 2.1 million, which is 38% year over year growth.

What about the iPhone being out of stock?

It doesn’t matter, replies Munster. A new phone is coming in June. It will likely be faster and cheaper. I expect the iPhone to be mainstream by 2009.

What’s your price target on this stock?

I think $250. I’m a huge believer in the stock.

Tomorrow's Trades #1
Discussing what's the trade ahead of Apple earnings tomorrow, with the Fast Money crew.

Traders what do you think?

By the dip, says Jeff Macke. But I really want to see the iPhone in stock.

Technically the stock looks good to me, adds Guy Adami. I think it goes to $200.

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Trader disclosure: On Apr. 22, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (YHOO), (MSFT), (INTC); Finerman Owns (GS); Finerman's Firm Owns (DAI), (MSFT), (NYX), (TSO), (VLO), (YHOO); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY),(COF); Najarian Owns (AAPL), (ENER), (NOK), (TSO), (XLF), (YHOO), (EMC); Najarian Owns (BHI) Calls, (DD) Calls, (MSFT) Calls, (POT) Calls, (CHK) Calls; Charles Schwab Is A Sponsor Of "Fast Money"

Piper Jaffray Is A Market Maker In (AAPL), (ADBE), (ADSK), (BIDU), (CHKP), (CNET), (GOOG), (MCHX), (MFE), (MOVE), (SINA), (SOHU), (SYMC), (VRSN), (YHOO); Piper Jaffray Received Non-Investment Banking Securities-Related Compensation From (MCHX) In the Past 12 Months; Piper Jaffray Received Non-Investment Banking Securities-Related Compensation From (SOHU) In the Past 12 Months

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