“Has Apple (AAPL) hit rock bottom? Oppenheimer’s Yair Reiner thinks maybe it has. This morning, Reiner repeated his Outperform rating on the stock, though he cut his price target to $145 from a no longer realistic $213. He’s also trimmed estimates, and now sees FY Q4 at $1.11, down from $1.17, with ‘09 down to $5.64, from $6.29,” Eric Savitz reports for Barron’s
“That said, he makes a pretty strong case for the stock, noting that the shares now offer a 10% free cash flow yield, a strong brand in a sustainable industry and a strong balance sheet, with $23 billion in cash and no debt. ‘To put Apple’s current valuation in perspective, on a trailing cash flow basis, it’s trading in line with the historic trough multiples of HPQ and DELL,’ he writes. ‘You have to look back to the darkest days of 2001 – pre-iPod – to find Apple’s multiple this beleaguered,'” Savitz reports,
MacDailyNews Take: Uh, Reiner didn’t get the memo: Due to massive quota overfulfillment, “beleaguered” and “Apple” are never to appear in the same sentence ever again, regardless of context.
Savitz continues, “Reiner concedes that if the global economy ‘plunges into a hall of horrors’ – aren’t we already there? – then no one will be immune. But he says Apple should still keep growing and outperforming, given a secular shift to Macs from Windows, the iPhone’s “incursion” into the handset market and ‘a global Halo 2.0 effect that’s bringing iPhone users into the Mac fold.'”
Full article here.
Global Halo 2.0?
fsck that BS shit.
why does everything have to have a 2.0.
it’s still riding the OG halo. period.
Duh, has this guy heard the whole wall street economy is tanking? It’s all relative, all companies are losing value.
No way! This crisis is not one of liquidity but one of solvency. The fed and the government has been more than willing to pump in all the liquidity into the system to prop up the economy. Money in the system is not the problem. It is one of solvency. By pumping more money into the sytem to prop the inflated numbers they are creating a longer term issue. What should be done is to let the bad debts have the market take care of them which is what we see happening now as we speak. Since bad debts are worthless natural forces in the market will eliminate them and those who profited from them. Who wants to wager we have a new monetary system within a year? Hmmmm maybe cashless.
@opie
If we are lucky, we go to a system where iPods are the primary unit of currency in denominations of shuffle, nano, classic, and touch.
Then Apple really will be a mint.
I AGREE wholeheartedly.
I also believe something else is being played out and the American public (as well as other countries) are going to lose more ( alot more) individual freedoms.
The best way to force change on an unsuspecting public is to create a massive problem, then after enough time, propose the “solution” to the problem.
WATCH OUT FOLKS. THE WOOL IS ABOUT TO GET PULLED OVER YOUR EYES IN THE NEXT TWO YEARS!
@ople What about the last 8 years!
“given a secular shift to Macs from Windows”
Sheeesh. He is completely ignoring the all-important priest market.
Looks like Apple already see this crisis coming and that is why did not spend so much cash (the PA semi acquisition was a very small acquisition in terms of money / cash on hand).
Imagine what could happened to microsoft if yahoo had accepted the buy out? Microsoft could be on sale by now because they were about to accept a loan in order to buy Yahoo… too bat that did not happened.
I always knew Apple was just hype and nothing else, you better sell your stocks ASAP.
@opie,
BUT banks have to be willing to loan out the money to consumers and small businesses, and they aren’t.
@The Great Apple Fanboy Massacre,
Oh, man, I just can’t stop laughing! Thanks for your post! And, you know what? I bet most people here don’t even get the sarcasm in your post, because, I’m sure you’re not THAT dumb.
@ (@opie) What the heck are you talking about?
It sounds like you are one of those goons that is warning about the “coming Socialism” or some such rot, but you don’t give any information so it’s hard to tell if you are spinning a Fascist conspiracy or a Libertarian one.
In case you haven’t noticed, conspiracy theories like that require a “false” problem, as in the classic “false flag attack.” The current economic crisis is actually real.
Also, such conspiracy theories require the “solver” of the problem to be the same group that created the (false) problem. In this case the problem was created by free-market capitalism gone wild, and as of yet the only solutions to it are being proposed by the other side, i.e. those dreaded evil “Socialists.”
Since it’s very unlikely at this point that the free-market capitalist guys are going to win any elections for the next 8 years or so, it makes no sense to think that they are going to come up with some radical “solution” to their (false) problem.
Your analysis is idiotic and non-sensical.
“Has Apple (AAPL) finally hit rock bottom?”
Yes, but it still refuses to admit it has a problem or that it’s powerless over its addiction to cool gadgets. They’ll get no sympathy from the group until they do.
@ The Great Apple Fanboy Massacre
It’s Microsoft that is currently taking a huge crippling one to the shorts. All of these big financial institutions and companies that have the annual licensing and support deals that are paying MS on a monthly bases is hitting MS in it’s monthly reoccurring revenues.
In bankruptcy court MS is on the bottom of the totem pole to collect.
When MS starts reporting missed earns and mounting losses, the investors will flee from the sinking MS faster then rat from water.
Financially MS is a far more vulnerable position with it being a sorta creditor and it’s google envy spending and losses.
“BUT banks have to be willing to loan out the money to consumers and small businesses, and they aren’t.”
You’ve obviously been listening to the drive-by media way too much. I actually work for a bank. And guess what? If you have good credit, you can get a consumer loan or a small business loan here today. That’s the same as it was here yesterday, and it’ll still be the same tomorrow. Don’t buy into all the media created hype because it simply isn’t true.
Let us prey!
Savitz of Barron’s loves to post negative Apple news.
No Apple hasn’t hit rock bottom. Wait for Apple to release their notebooks on Oct 14. The stock will go down again for 2 days (no matter how good they are).
(with apologies to the great Ms Klein)
Sometimes in a down market people have to liquidate solid stocks to get cash for margin calls or sometimes sell out of blind panic. The same sometimes happens to large trading firms, which will sell off solid stocks in a downdraft to lock in gains before they are wiped out by the fearful sheeple.
Apple could be in for some blunting as most of what it makes is sold to the consumer market on a discretionary basis- you cannot eat an iPhone or MacBook, but you can usually get along with what you have. Apple will doubtless take some kind of hit- either a blunting of growth or even a slight decline. Fanbois in denial about the very real carnage from unrestricted Friedmanomics are getting a hard lesson in how much BS Uncle Milton was pumping- it’s payday today- not someday.
Hopefully, Apple will do as it did in the dark days of the 2000-2001 recession and continue R&D;even as competitors cut back. That will enable them to extend their lead on the competition.
No. There is no “rock bottom” as long as the $ is artificially held too high in its currency change value. First a $ solidified at a max of 20 Euro cents… then a new shares alignement. But many entreprises will desapear till then.
AAPL is in good shape with plenty of cash. And, their stores generate a ton of cash flow. This stock will hold its own through this debacle.
The Wall Street Journal is calling for Dodd and Frank and others from Congress to go before hearings to explain what happened. As O’Reilly told Frank on TV – He should resign. The Democrats are a disgrace and Obama spews his BS when he was a part of all this with his Acorn buddies.
“Jeremy” wrote:
“… the problem was created by free-market capitalism gone wild …”
Ohhhhhh, riiiiiight. I LOVE it! Waaaaahhhhhh, this is all the fault of “free-amrket capitalism” gone wild! Waaaaaaaaahhhhhhhhhhhh!!!!!
Give me a break, you fool. This has very little to do with the functioning of the free market and EVERYTHING to do with … are you ready? … TOO MUCH GOVERNMENT INVOLVEMENT in the markets in the first place!
Whenever government inserts its tentacles into the market system it F-CKS IT UP! That’s exactly what it did here! The day the execrable “Community Reinvestment Act” was dusted off and put back into play was the day the writing was on the wall. Hell, even Bill Clinton, no less, has the good sense to recognize reality lo these many years later.
And when Fannie and Freddie first became “quasi-government agencies” we all should’ve seen the warning signs. Those 122 world-class economists and other free-market advocates like Stossel and the libertarians are RIGHT — the Democrat policies of GIVING OTHER PEOPLE’S MONEY AWAY to those who haven’t earned it is the problem.
Obama promises more of the same. Frank, Dodd, Reid, Pelosi … get rid of them ALL! ! ! ! ! ! ! ! ! ! ! ! ! !
Time: 3:12 pm Friday October 10th, aka the last day of ‘Crash Week’.
And what is going on with Apple stock? Up $4.46 for the day at $93.20 and fluctuating.
And the rest of the stock market? DOWN. At the moment the Dow Jones is down another $526 for the day, heading below $8000. And so begins the Bush Depression.
Apple again asserts itself as a safe haven for investors. Perhaps the fact that they won a pile of prizes at the T3 technology magazine’s annual awards in Britain inspired some traders.
AAPL will hit $60 on October 22nd because Wall Street (though they were already warned beforehand) won’t like the guidance. There will be some good value in Jan 2011 $100 Call options; nice two year cushion for things to hopefully get back on track. Again, my advice and $2 only gets you a ride on a bus in Canada, where thankfully, our banks are properly capitalized, our homes are still worth what they’re worth, and when we couldn’t care less about our leaders, we give them a minority government
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@The Great Apple Fanboy Massacre
Well since you posted, actually, the trend is going up, it’s up almost $7.00 since your foolish post.
@Opie,
The new currency will be Head Cheese!!!
(props to SNL)