“Bear Stearns lowered estimates for Apple Computer on Friday to reflect more pronounced iPod seasonality, but maintained an ‘outperform’ rating on the stock based on valuation and foreseen second-half strength. ‘Our view is that investors should take advantage of current weakness, viewing Apple as a compelling second-half play, though the risk is that our outlook is somewhat based on products not announced or seen yet,’ wrote analyst Andrew Neff in a report Friday,” Maya Roney reports for Forbes.
“Neff cut his fiscal third-quarter iPod unit estimate to 8 million from 8.9 million but said Intel-based Macs and music would drive earnings in the back half of the year,” Roney reports. “Neff said Apple’s valuation looked attractive at 17 times his calendar 2007 operating earnings-per-share estimate. He reduced his calendar 2006 target to $90 from $94 but said he remains a buyer of the stock. ‘Apple’s stock is dependent on major new product launches,’ the analyst noted. ‘We’re comfortable that Apple will continue to innovate, which we reflect in its multiple, but the timing and customer reaction are always speculative.'”
Full article here.
Advertisements:
• Introducing the super-fast, blogging, podcasting, do-everything-out-of-the-box MacBook. Starting at just $1099.
• Get the new iMac with Intel Core Duo for as low as $31 A MONTH with Free shipping!
• Get the MacBook Pro with Intel Core Duo for as low as $47 A MONTH with Free Shipping!
• Apple’s new Mac mini. Intel Core, up to 4 times faster. Starting at just $599. Free shipping.
• iPod. 15,000 songs. 25,000 photos. 150 hours of video. The new iPod. 30GB and 60GB models start at just $299. Free shipping.
• Connect iPod to your television set with the iPod AV Cable. Just $19.
• iPod Radio Remote. Listen to FM radio on your iPod and control everything with a convenient wired remote. Just $49.
Related articles:
Analyst Wu: Apple should meet or beat Q3 guidance – June 15, 2006
Merrill Lynch increases Mac computer revenue growth estimates – June 15, 2006
BusinessWeek: big market-share gains coming for Apple’s Macintosh – June 15, 2006
‘Apple’s stock is dependent on major new product launches,’
I can’t believe this statement from an investment ‘professional’.
Apple’s stock moves according to the guidance provided by management, and confirmed by sales of existing products. Nobody in their right mind would buy a stock based on the introduction of some as yet unseen product. Sheesh.
Wow, now that headline is a bit misleading isn’t it??
I wouldn’t invest in Apple (or much of anything) right now because the US economy is headed for a recession.
People can’t buy if they have no extra cash for toys like Mac’s.
Wages still haven’t come up to meet the new inflation trend.
The poor working class is paying for the real estate bubble with higher fuel and food/housing costs and no higher pay.
Of course if the pay goes up so does the prices.
Ain’t inflation wonderful?
Apple’s stock is dependent on major new product launches,’
I can’t believe this statement from an investment ‘professional’.
Well he should tailor it better, it should say this:
“Making large gains with Apple stock depends upon major successful new product launches”
Apple’s stock moves according to the guidance provided by management, and confirmed by sales of existing products. Nobody in their right mind would buy a stock based on the introduction of some as yet unseen product. Sheesh.
Yea existing product sales the stock can go up, but nohing like when the iPod took off.
Apple’s stock went through the ceiling and they split it a few times too. So much that it was worth more than Dell which sells hundreds of times more computers than Apple does.
I would wait until Apple stock stabilizes, look at a combination of new products AND the state of the US economy.
What did it for Apple was people in the US had a LOT of disposable income because of the cheap Fed money tobanks which loaned it out to people dirt cheap, created the real estate bubble etc.
Now that’s over, people are tightening up, fuel costs are high, inflation is high, cost of living is high, recession is close.
Not much money for Apple toys now like before.
If you got Apple stock sell, that’s my advice. Get into cash or recession proof investments.
Sure Apple sells a lot of iPods, but world demand is slowing and that means lower stock from a overinflated price.
Too many of you guys have been reading too many of the Democrat’s blogaganda sties.
Inflation/recession/whatever. These aren’t good things, but they aren’t catastrophic either.
The difference between a robust economy and one in recession is about 3% of GDP. THREE FREAKING PERCENT. The world does not stop with a 3% decline in GDP. Most, and I mean MOST, people don’t experience any discomfort from a recession. It’s impact is on a small fringe group, and does not impact all firms equally.
If a recession does occur it will impact Hewlett/Packard and Dell far more than it will Apple. They each derive a much larger share of their revenue from corporate America, than does Apple. The 2% or 3% of the workforce that finds itself out of work aren’t new computer buyers in any market.
Couple that with the fact that Apple is gaining share against HP and Dell. A recession won’t change buyer’s platform decisions. To the contrary, those that own a Mac, and a PC, will drop the PC in favor of the dual boot Mac.
Apple isn’t entirely immune from the effects of a recession, but they will continue to prosper where others do not.
I wouldn’t invest in Apple (or much of anything) right now because the US economy is headed for a recession.
—
‘headed for’? The Canadian Dollar is at like 90 cents. Dude. Look around. You’re in the thick of it.
Gregg, we seem to be on the same page on some things lately…
Apple isn’t entirely immune from the effects of a recession, but they will continue to prosper where others do not.
Sure they cater to the personal computing market with more disposable income, these type of people always have money.
But a iPod is a more of a “everyones” device, from the college student to the day worker and these people are going to be very stressed during a recession when other bills have more priority than a new iPod release.
Now there is talk Microsoft is going to leverage their X-Box with a new iPod killer/music service.
Dam consoles are a real threat to the personal computing market. Even game dev’s are wanting to go completely over because it’s less of a piracy threat.
Shouldn’t they be called Bull Stearns when they issue positive outlooks?
wouldn’t invest in Apple (or much of anything) right now because the US economy is headed for a recession.
Smart investors can make it an almost any market.
Just stay away from $900,000 McMansions you hope to “flip” in six months & make tons of money in the process.
A year from now “hot real estate” will have the ring of “hot dot com stock”. “Interest-only mortgage” will sound like “margin trading”. And the realtor house-for-sale sign will look as absurd as the Pets.com sock puppet.
Maybe the bubble will pop, maybe it won’t. Feel lucky?
” width=”19″ height=”19″ alt=”smile” style=”border:0;” />
Mr. Thurman-
You said, “Too many of you guys have been reading too many of the Democrat’s blogaganda sties. Inflation/recession/whatever. These aren’t good things, but they aren’t catastrophic either.”
Let me tell you a few things: First, if it takes a Democratic blog site to inform you that America’s shitty economy is starting to go down the toilet, you need to pull your head out of your ass and take a look . . . Second, you say things aren’t good “but they aren’t catastrophic either.” Like most younger Americans, you assume that economic catastrophies resemble nuclear explosions. That’s an ill-drawn metaphor. Most economic catastrophies spread like the plague, killing only slowly at first- but they spread quickly, and each wave kills more than any bomb.
We had a budget surplus 6 years ago. Who thought that was possible when Clinton was elected? I didn’t. Now we have an enormous deficit, with no economic or foreign policy suggesting that it will change. There may have been worse administrations in U.S. history, but I can’t think of any. Grant? Hoover? Time will tell . . .
Don’t misjudge me Thurman, as thinkers of your type/ilk usually do- I am not a Democrat. The Democrats right now are an embarassment- I haven’t heard a policy idea come out of their mouth in the last 6 years Their only policy/strategy has been to point out that America’s economy and foreign policy/position are collapsing, and they themselves have no power- thus they can’t be held responsible for the fact that Bush sucks like a Hoover. Again, I am not a Democrat- I hate them.
I just hate Bush and his supporters more.
Well said CJ. I couldn’t agree more!
Just stay away from $900,000 McMansions you hope to “flip” in six months & make tons of money in the process.
Oh that’s gone by the wayside for sure for most folks, it’s all long term now.
If one is to buy a $900,000 mansion, it’s in a area were a other of that silk feathers live, then be prepared to sit on it for some time but it will go up regardless, the rich thrive on exclusiveness and pay dearly for the option to get away from the “common folk”
” width=”19″ height=”19″ alt=”smile” style=”border:0;” />
I’ve seen houses in those areas for sale empty for as long as 10 years because the owners are wealthy enough not to come down in price, rather driving up the “entrance fee” instead.
CJ and Pete,
The Federal Reserve runs the economy regardless of what political son of a bitch party is in power.
Sure the ‘twice elected fool’ or the ‘I need my cock sucked by a intern pervert’ may do some things differently in regards how they either “borrow and spend” or “tax and spend” or who “does something about terrorists” vs “one who pussied out” regardless it all balances out by the all controlling Federal Reserve.
I don’t much like pure Capitalism or Socialism really. One works us to death for nothing and the other robs us to death to pay someone who doesn’t do shit.
We lose either way and I give you the great Demoncraft Welfare Mafia run State of RI to prove it.
Of course the Great “Don’t Messa with” the Neo Nazi Bible Brainwashing State of Texas would be the opposite.
“There may have been worse administrations in U.S. history, but I can’t think of any. Grant? Hoover? Time will tell . . . “
Andrew Johnson, Warren G. Harding and Franklin Pierce? Yikes.
Hoover was a putz but blamed for many things already in motion.
Grant was just a drunk. An aggressive megalomaniac and hard-driven but usually intoxicated and abusive. Bush, Jr. means well but he’s an idiot. It’s pronounced “nu-cle-ar”. Scary. Jefferson would have been a Mac user.
C’est moi. I am a Mac User!
MadMacMan
Mate – the Reserve (and all central banks) run monetary policy in terms of rates etc.
They certainly can affect the economy in this way, but only in terms of trying to use their tools (mostly interest rates) to balance out the effects of the ADMINISTRATION’s fiscal policy.
If you think the central banks are responsible for the economies of the world you need a reality check.
It is the elected goverments and their fiscal poilcy that dictates how an economy will run. All the central banks (eg the Federal Reserve) do is try and put checks and balances in to ensure (or try to ensure – sometimes they can’t) that the economies they look after do not enter massive recessions or massive rounds of inflation.
Personally I do not care about republican/democrat debates – it’s your goverment good luck to you. But I do care (either side) what their economic policy is (because I openly acknowledge that the US economy is THE economy of the world – again I have no issue with that) because what happens to the US economy directly effects the economic health of almost every economy in the WORLD (including Australia’s).
So in the end, and especially due to the Bush (II) administrations policy that the US lead the world in all matters, I have a right to voice my opinion about “my” leaders and what they do.
My opinion – the current fiscal policy of the Bush (II) administration sucks dogs balls! And my info suggests most Republican’s agree (and Democrats – cause that’s their job – who knows if they actually know whay?).
You know this also poses an interesting social issue.
The War of Independence was essentially fought over the issue of “taxation without representation”.
Wonder what will happen to the USA’s foreign relationships when the rest of the world catches on to the fact that the US administration’s policies are affecting us directly, but we have no RIGHT to have a say about WHO will dictate ALL of our economic and political futures.
Of course there wont be a war or votes granted to foreigners, but it may result in economic and trade policy changes to reduce the reliance on the US.
Australia are already hedging their bets. After signing a Free Trade Agreement with the USA, we immediately started negotiating with China. My bet is the EU will be next.
As I said I have no problem with the US’s position in the world. They earn’t it by adopting free market/capitalism principles before everyone else (well size helped there too – Australia was NEVER going to be a world superpower economically with 20 million people). But the US has to realise that if they OPENLY take that role, they have responsibilities (eg running their economy in a way that doesn’t threaten world prosperity). And if they choose to ignore those responsibilities, then they sould get upset (or be shocked) when people from around the world OPENLY resent them and voice their dislike of the US administration (most EU’ers don’t hate American people, just American policies)
my extra long 2 cents!
Luke
excuse spellin errors.
Just the ones I quickly noticed:
“whay” should be “why”
and “sould” SHOULD be “shouldn’t”
meanwhile on this and other analyst stock upgrades, Apple stock dropped another $2.00………
LukeinOz – so much blah,blah,blah and you did not say a single thing. Generalities heaped upon generalities.
Some people wouldn’t know a good economy if it bit ’em on the ass.
I’ve seen houses in those areas for sale empty for as long as 10 years because the owners are wealthy enough not to come down in price
We’ll nobody’s going to shed too many tears for the truly wealthy.
” width=”19″ height=”19″ alt=”smile” style=”border:0;” />
I guess I’m talking about the hot shots who THINK they’re rich, yet are fully maxed out in debt. The ones who thought they’d make gobs of money through buying overpriced properties with hybrid mortgages, then selling quick before their Faustian deal crashes down (i.e. when the interest & payments go way up in five or so years). Investing with borrowed money is risky business in any market.
As for Apple, IMO their only real threat is a Vista success at MS, and I don’t see that happening. Sure Apple’s stock will gyrate with product life cycles & the rest of the stock market, but long-term I’d say Apple has a pretty good outlook.
Analysts, Analysts, Analysts, Analysts . . .
Bunch of economic ignoramuses on this thread! You all can kiss my 100% pure American a** even while you thank America for pulling the rest of the world economy forward in its wake. Right now the US is growing strong, started growing before the rest of the world picked up, and our purchase of your goods is a big reason why the rest of the world economy is improving. There’s not going to be a recession, at least not anytime soon. Slowing from over 5% GDP growth to a more steady 3.5% growth rate is not a “recession,” despite all of your wishful thinking. BTW, the US debt is still fairly small relative to our economy compared to Japan or some of the other major Western European powers. Is it the smallest? No. Is Bush perfect–He** No! The “universal” Medicare drug benefit was the closest thing to a policy crime you can get in the public arena. But the Dem proposal was to spend even more AND to eliminate private sector research on beneficial new drugs through price controls. What a lovely choice!!!