“I wrote that you better hurry if you want to buy Apple under $150, as the stock had rebounded from a recent low of $118 to the $140’s. Tuesday, the stock closed at a new 52-week high of $153.18,” Georges Yared writes for BloggingStocks. “So what’s going on and what’s new?”
“Apple is in the midst of a major, major product release cycle. The iPhone sales have been more than solid and production for the rest of calendar 2007 has been raised from 3.6 million units to 4.8 million. European and Asian distribution is just beginning and with Apple’s revenue recognition model set for iPhone sales over 24 months, the visibility of Apple’s numbers just goes up that much higher. Investors will reward ‘visible’ numbers with a higher PE ratio,” Yared writes.
“Apple is also in the beginnings of a new iPod launch. The iPod installed base is over 110 million units strong. Talk about a willing audience for the upgrade cycle! It re-enforces the visibility theme. The revamped Mac computer is in its second quarter of sales and this product upgrade cycle should last into the next 4-6 quarters,” Yared writes.
Yared’s 12-month price target for Apple is $200, which he writes, “may prove to be conservative.”
Full article here.
From his lips to God’s ears.
Something on the order of Google adopting the Apple iPhone could send it over $200 per share easily.
Something on the order of Steve Jobs dying of a heart attack could send it below $100 per share just as easily.
Market Caps (rounded):
Hewlett Packard 130B
Apple 133B
I predict that HP will pull slightly ahead one more time, and, then, Apple will surge (isn’t there some big consumer buying event coming up soon?). It’ll be “Buh Bye HP”, and on to overtake Intel.
It may take longer than he thinks. There has to be those willing to buy it at that price with a belief in a return.
Apple is a publically-held company. And as such, they have already factored Steve Jobs’ importance into its business plans. In the event of SJ’s demise, they will activate Plan B. They have secretly developed an army of SJ clones just for this eventuality. So don’t fret. SJ shall live forever.
Actually – You might be right, it’s difficult to come up with that much for a 100 shares. Those with that kind of investment capital probably bought more shares earlier. We’ll probably see a split soon.
The Clones! That’s what they’ve been building with the spare R&D;resorces!
Today, AAPL (133 billion) is twice the market cap of Dell, equal to HP, and half of Microsoft.
The question to me is placing their future in context. Is this a tech company constrained by tech company valuations, or one which can escape to approach the valuations of companies like GE (420 billion)?
Some quick comparison values for fun …
General Motors – 20.5 billion
McDonalds – 65 billion
Proctor & Gamble – 220 billion
Walmart – 176 billion
Verizon – 129 billion
AT&T;- 261 billion
Intel – 152 billion
It is a very significant thing to stop thinking about Apple as the garage computer company and begin to understand that it is an honest peer among the greatest companies ever. More importantly, there is no company in sight of this stature with a greater opportunity and momentum for growth.
at last one standing:
so buy 50 shares.
mw: Look, as in Look around I’m the only one left. Where did everyone go?
“You might be right, it’s difficult to come up with that much for a 100 shares. “
You don’t need to buy shares in lots of 100. At the very least you can buy with a site like Sharebuilder and even get partial shares.
No news here. Move on….
I told you much before that It will go beyond $200….
@Lastmanstanding: its only difficult to buy 100 shares at the price it is now if u DO NOT HAVE ENUF MONEY. there are people wealthy enuf to buy shares at any price….which is why brk.a is at 118,000 a share and GOOG is at 567 and change. for a man with ten dollars, five dollars is affordable. for a person with $5, five dollars becomes expensive
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