Negative earnings have been priced in many time over. The stock is never going below $420 which was the recent bottom. Its only up from here no matter what. The cash and PE are already too low and have priced in 2-3 years of bad earnings. I think they will report meet or beat earnings and surprise all. There are other things happening too that will be announced sooner than you think. I wouldn't stay short. Enjoy the gains and go long to get gains down and up.
Dude, a stock goes up only because people buy it. People buy stock only because they think they can sell it at a higher price. It doesn't matter what you think its value or PE should be. The collective thinking of the other people (which is called the market) always wins out.
I learn this from the biggest mistake I have made in trading. Many years ago I bought Lucent at $53. It went up to $86 but I didn't sell. It than crashed down to around $20 and I along with many analysts thought it was undervalued and it should worth a lot more so I bought more to average down. It went all the way down to $1. I eventually sold them around $3.
I agree, Apple is being repriced as a value play instead of a growth stock which carries the higher multiple. 7 or 8 X earnings after you subtract cash is too low for this company. If they show any glimpse of new growth, be it from cheaper IPhone, TV, smart watch or anything else watch out. There has to be less risky short plays out there right now.