Apple shares surge, investors like valuation

Shares of Apple (AAPL.O) Inc. rallied more than 9 percent Friday, as investors saw a newly attractive valuation in the battered stock and anticipated new laptop computers.

Apple, which also makes iPod music players and iPhone communications devices, has scheduled a Tuesday event at which it is expected to unveil a line of lower-cost notebooks. The company is scheduled to release its quarterly results the following Tuesday.

With the economy likely facing a drastic slowdown in consumer spending, Apple's shares had dropped more than 40 percent in the last month. But Yair Reiner, an analyst with Oppenheimer, said that with the Apple's stock trading at less than half the price of a year ago, the shares look attractive on valuation alone.