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Apple-mania seems to be non stop these days. It reminds one of the tech bubble from 1999, except there is a big difference. Cisco (CSCO) hit a $500 billion market cap during that time period only to come crashing down. The reason was that investors were paying too much for the potential growth of the company.

Apple (NASDAQ:AAPL) also recently reached the prestigious $500 billion market cap mark. Apple’s PE is at a fair rate of approximately 15, and net of cash the number is closer to 11, hardly over-valued to say the least. In addition, some of the best value investors are pilling into the stock. David Tepper, David Einhorn, and Dan Loeb are among big investors in the company. It is particularly surprising to see someone like Tepper buy the stock since Tepper focuses on distressed assets, not huge blue chips like Apple.

We must note that all the above hedge fund managers have significant assets under management and this limits what they can invest in. While Apple could easily be a ‘2 bagger’, it is extremely unlikely to be a 5 or 10 bagger. We do not own Apple shares but understand why these investors might be buying the company.

While we discussed the long term potential of the company all eyes are on what the stock will do today. Apple is shortly holding a big conference where the iPAD3 or iPAD HD will be unveiled.

The CEO of the company, Tim Cook, recently predicted that tablet computers will outsellPCs soon. Apple is THE favorite in the industry and the ipad currently holds 58% of the tablet market share, despite stiff competiton from Google’s (GOOG) Android (we noted Google’s planned upgrade from android to Google Play in an article yesterday).

The new iPad will also be important since it currently makes up close to 30% of Apple’s $32 billion of revenue, as of Q1 2012.  The stock currently trading at $534 a share could see a big reaction based on the future device.

According to Apple’s website the new iPad will feature Senseng technology:

“Senseg turns touch screens into Feel Screens.”

“With Senseg touch screens come alive with textures, contours and edges that users can feel. Using Senseg technology, makers of tablet computers, smart phones, and any touch interface device can deliver revolutionary user experiences with high fidelity tactile sensations. Your customers will Feel the Difference with Senseg.”

The tablet is also expected to run on 4G networks and have other new features as detailed in this article.

Stay tuned for the news as the new iPAD will be unveiled today at 1:00PM EST. ValueWalk will be providing extensive coverage of the event.