nerdhook

Some of the best coverage of Apple stock (AAPL) comes from CNBC’s Jim Goldman writing for his Tech Check column. He has a great piece out today essentially mocking the ridiculousness of some Wall Street Analysts, most recently from Goldman Sachs.

Today Goldman Sachs cut its target for AAPL to $115 per share. Back in May, with AAPL trading at $180, the firm maintained the stock at a strong buy.

For Goldman to lower is unfortunate for its clients who were probably looking for a little better guidance far earlier than today. If the firm followed fundamentals, it seems to me that Apple is infinitely more attractive today at $95 then it was back in May at $180.

Goldman also points out the nearly $25 billion Apple currently has on hand in cash reserves, a fact often overlooked in analyzing the company’s outlook. Because of this cash stockpile, Apple can continue to invest heavily in research and development, and not be forced to lower retail prices (and margins) in an attempt to keep sales volume at previous levels.

The downward trend of this economy is good for no company; but the prospects are significantly less dim for a company with some reserves to draw on as needed.