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Gene Munster: Now is a Great Time to 'Buy' Apple

On Monday, investors were again fretting over the weakness in the stock market with the S&P touching a two-month low, its deepest decline since March 23rd.

The index is down more than 5 percent from its May high.

However in an environment riddled with selling and uncertainty, the Fast Money traders always say to keep an eye on what’s working.

And lately Apple has been working, easily outperforming the broader S&P. Over the past two weeks Apple is up about 3% while the broad market is about 1.5% lower.

On the floor, chatter suggested Apple's march higher was in anticipation of Monday’s event in which CEO Steve Jobs personally unveiled the company’s newest service – the iCloud, a web-based service that lets consumers stream music they bought to any Apple device.

Typically Apple runs up into a product launch and then sells off – a trading trend that pros call ‘buy the rumor and sell the news.'

However, if you’re about to hit the sell button, widely followed tech analyst Gene Munster of Piper Jaffray thinks you’ve got it all wrong.

”I’m a buyer today,” he says. “if you look at the valuation it’s pretty clear that its probably the best value, relative to growth, in all of tech stocks.”

Although the iCloud is probably priced, Munster is looking down the road – and he sees catalysts. Major catalysts.

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Not only is Munster bullish on iPhone 5 which he thinks will come out late August or September but also says, ”I think there are new categories coming. I believe they’re going to become part of the television market probably late 2012 or 2013." And to capture those gains, he adds, "now is a great time to own (stock) in anticipation of the next year.”

Of course not everyone is an Apple bull, like Munster.

When asked why more investors don’t shares his enthusiasm, Munster explains that investors don’t believe the growth is sustainable. "It’s hard for investors to get their mind around (the idea) that a $100 billion plus company can grow at greater than 15% over the next several years. That’s why it trades at such a low multiple."

Munster, however, is a believer. "I think they can,” he says.

If Munster’s thesis speaks to you, trader Brian Kelly counsels “look for Apple to close lower but if it does – use it as your buying opportunity.”

Trader Steve Grasso and Stephen Weiss are also bullish. “I like the stock, straight forward,” says Grasso. "Me too, adds Weiss. "Apple is one of the tech stocks that I have a lot of confidence in. I don't mind owning it here."

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PERU AND SILVER

Elsewhere in the market, the traders were closely watching the iShares MSCI All Peru Capped Index Fund which fell sharply on Monday after left-wing former army commander Ollanta Humala won the nation's presidential election and vowed that the poor will share in the country's new wealth, scaring wealthy investors.

What’s the trade?

Trader Brian Kelly says, "I’m a buyer of the SLV but I’d stay away from the miners."



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Trader disclosure: On June 6, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss owns (TWM); Weiss owns (SDS); Weiss owns (JPM); Weiss owns (QCOM); Weiss owns (COP); Weiss owns (DVN); Weiss owns (HK); Weiss owns (AKAM); Weiss owns (BRCM); Weiss owns (HBAN); Weiss is short (SHAW); Weiss is short (SLR); Weiss is short (SWLT); Weiss is short (X); Grasso owns (AKS); Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (D); Grasso owns (HOV); Grasso owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST)

For Brian Kelly
Accounts Managed by Brian Kelly Capital owns (GLD)
Accounts Managed by Brian Kelly Capital owns (SLV)
Accounts Managed by Brian Kelly Capital owns (TLT) calls
Accounts Managed by Brian Kelly Capital owns Austrialian dollar
Accounts Managed by Brian Kelly Capital owns new zealand dollar
Accounts Managed by Brian Kelly Capital owns hong kong dollar
Accounts Managed by Brian Kelly Capital owns (IWM) puts
Accounts Managed by Brian Kelly Capital owns (USO) puts

For Steve Grasso:
Stuart Frankel & Co and it’s partners own(CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MU)
Stuart Frankel & Co and it’s partners own (MSFT)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own RDC
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own UAL
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners are SHORTS (QQQQ)
Stuart Frankel & Co and it’s partners own (AAPL)
Stuart Frankel & Co and its partners Are Short (AAPL)





CNBC.com with wires.