Apple (NASDAQ: AAPL) posted excellent results for its fiscal first quarter ended December 31. Wall Street consensus was $1.55-1.60, quite a range, and Apple reported earnings of $1.76 on revenue of $9.61 billion. The "whisper" numbers were all over the board with the highest I heard of calling for earnings of $2 on revenue of $10 billion.

While Apple hit excellent numbers, especially viewed on a year-over-year basis, up 57%, the guidance for the seasonally slower March quarter was tempered down by the company. The Street expected earnings of $1.09 and Apple guided to 94 cents to 95 cents and revenue of $6.8 billion versus Street expectations of $6.99 billion.

I had the chance to speak with four different portfolio managers about their strategy for Apple. Two are keeping their positions and will add at the $140+ level. One is buying immediately as he views the Apple guidance as a shrewd move as the shares were down to the $1.55 level anyways, so why not let the steam out of the story. Apple had nothing to gain by stretching to make the March number of $1.09. If the $1.09 guidance had been maintained, that means that Apple would have to hit $1.15 to $1.16 to keep the Street happy. He thinks the strategy is brilliant.

The fourth manager who owns the shares since about $20 believes Apple will take its "revenge" on the Street and really accelerate its growth for the rest of the year. Needless to say, he's not selling a share!!

The new iPod with the touch screen was priced at $299, only $100 less than the iPhone. Some wonder if the narrow price difference led to a bit of consumer freezing the decision of which to buy. iPod sales came in at 22.1 million units, a few million under estimates. The iPhone came in on target at 2.3 million units and the Mac came in slightly ahead of plan at 2.31 million units.

The really good news was the operating margin came in at 22.1% which is stunning for a "hardware" maker. Apple, as usual, guided margins down like it has for the past 8 quarters.

What to do with the stock.

The fast momentum has been taken out of the stock for the next 2-4 months. Apple will have ticked off fast-money investors and they will bail. As the shares settle in around the $135-145 level, Apple is a buy at these levels. I had written that Apple could achieve a price target of $300 in 12 months. That target is not feasible in 2008, but it is in 2009. Apple's story is as solid as ever. International revenues up over 40%, superb margins, early in 3 major product cycles and of course, busy retail stores.

If you are an investor, Apple is a buy here, or at worst, a hold. To sell the shares here is a mistake. Apple is the game changer in the sector and the shares will bounce back.