“Stephen Coleman, chief investment officer at Daedalus Capital, says Apple Inc. shares will rise further, ‘going to $600,'” Ken Prewitt and Julie Vaughn report for Bloomberg.
“He spoke in an interview from St. Louis, Missouri,” Prewitt and Vaughn report. “On Apple’s 115 percent rise this year. How much is left? ‘Quite a bit, quite frankly. I think Apple is going to $600. And don’t fall off your chair.'”
People aren’t properly factoring in Apple’s Macintosh and it’s future potential, says Coleman in the full article here.
[Thanks to MacDailyNews Reader “Mike in Helsinki'” for the heads up.]
MacDailyNews Note: In the Bloomberg article, no time frame was given for AAPL to hit $600 per share.
If you think Coleman’s crazy, here’s something to keep in mind: On April 2, 2007, with Apple shares opening at $94.14, Coleman stated that Apple would hit $200 per share in 2007. Many people called him crazy last Spring, too: Daedalus Capital CIO: Apple Inc. will hit $200 per share in 2007 – April 02, 2007
Stephen M. Coleman is the Founder and majority shareholder of Daedalus Capital, L.L.C., where he has served as the Chief Investment Officer since 1994. He was formerly employed for four years by Prudential Securities as a Portfolio Manager. Mr. Coleman formed and is President of Chicken Little Fund Group, Inc., a mutual fund management company for Chicken Little Growth Fund (“CHKNX”), and also serves as General Partner of ALPHA Strategy Fund, L.P., a development stage aggressive growth equity fund. His prior financial experience includes working at Salomon Brothers, Drexel Burnham Lambert, and acting as President of a real estate syndicator in Miami, FL.
Since we’re “pie-in-the-skying” here, what should Apple do when then get to $600/share and a market cap of $525 B?
Buy Micro$oft.
😀
why would Apple be worth more than a company with twenty times the profits and revenue ?
i think that guy forgot to look at apple’s current market cap, it’ can’t go on increasing for ever !
not passed exxon, never !
Just for fun, I called a radio investment show about a year ago to ask about holding on to my Apple stock. The oh-so-savvy host (who sells securities) commented that Apple just makes a gadget, and advised me to take my nice (at that time) profits, since there wasn’t much upside to the stock. I’m so glad I ignored his (crappy) advice.
MDN Word: horse, as in “Horse…well, you know.”
And I thought my AAPL price targets were high at 350 – 450 in 24 months.
And there is a bunch of products (Pro and Consumer) that Apple still as the wrappers on according to my sources.
MDN Word: stay as in, If you own AAPL stay the course for the ride up to the top.
$600 is not an outrageous number for the next few years. It’s not hard to figure out.
Let’s say Apple meets its iPhone sales target for 2008 (10M iPhones). The crucial question is how that translates into earnings. I’ve read these numbers; $135 profit on the sale of a iPhone + $432 for contract fees from ATT ($18 x 24 months). That’s $567 profit per iPhone. At 10M units, iPhones will add $5.67 BILLION to Apple’s earnings.
REPEAT: $5.67 BILLION. That’s nearly twice Apple’s earnings for 2007.
$600/share is probably a stretch for 2008. If iPhones sales accelerate beyond Apple’s expectations, you bet that $600 is achievable.
While the point about Apple’s market value being $525 billion at this level is a good one – I still see this as a possibility. There is no other single company that has the ability and foresight to dominate the mp3 and video/music sales/rentals market, have about 25% of the mobile phone market, not to mention maybe 10-15% of the PC market hardware and software. Put all of these together (which I think are reasonable targets) and it makes since that Apple could be considered a 500 billion dollar company. No other company has the ability or possibility of putting these characteristics on their resume.
Martin said, “Why would Apple be worth more than a company with twenty times the profits and revenue ? i think that guy forgot to look at apple’s current market cap, it’ can’t go on increasing for ever ! not passed exxon, never !”
I think Martin forgot to look at Apple’s low current market share in all but the music player market. The markets that Apple is attacking are huge and Apple’s chances of achieving a leading position in those markets are outstanding. While Apple can not out value all markets put together, it can indeed grow to be the largest company on the planet. Apple will hit a market cap of 1 trillion dollars in not too many more years. And the doubters will be eating crow once again.
$600 sounds stellar but have in mind it is around 325% of today’s stock price. In the last 5 years, AAPL rose around 2000%. In a reasonable time frame with rising Mac and iPhone sales $600 might well happen. 2 years from now?
I”m Laura Goldman and I am going to hang myself tonight.
$600.00 a share, if google can do it why not Apple? Between the Mac and the iPhone, how room is there for growth and profits? The sky is the limit, which in my mind means so is the stock price.
Apple TV, that needs plenty of nurturing but anything can happen. The iPod and Apple TV are content orientated and Apple already has the music player market. TV and video are different but Steve will figuare it out.
$600.00…. heres to ya!
Well, just to be conservative, if we split the difference between this figure, and Laura Goldman’s sell order, we get $355.
I can live with that.
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-jcr
Apple stock price has grown 40 fold since 1999. That makes my 125% gain minor in comparison.
What Apple has that a lot of tech companies don’t is potential for more growth. Many have said it here, new products, new areas to sell products, low market share in computers, phones and poor competition in those areas.
If Apple increase their profits 6 fold they can be at 600 with half the PE ratio. That to me is not unbelievable.
@ Linux Guy And Mac Prodigal Son
Apple has 8.1% of the PC market, and a small (but solid, and very rapidly growing) share of the phone marker
do the math, they can’t reach exxons numbers, even if they take a 50% share in both markets (and that’s impossible anyway)
AAPL gained a lot, because their results keep improving, and they were undervalued, but there is a limit, from now on (or let’s say from January on) the value of the stock will be me in par with the results, undervaluation is gone.
i’m a believer, but $600 is absurd.
let’s say 300, 350 max.
(or more realisticaly, 250)
@Thomas from Deutschland
yes they gained 2000+ % that’s no garantee to gain 6000%.
2000 + 300 % is not 2300 %, but 6000 (but u know that i’m sure)
@Walk away Bill just walk away
yes google did it, but with a smaller number of shares, if one share of apple reaches $600 they will be worth over double the value of GOOG.
@ MegaMe: I also sold my shares shortly before the split, in order to make a downpayment on my house. It’s ironic that had I held onto the stock for just a little while longer, I would have been able to purchase my house outright! Oh well, it’s hard to complain when I have a roof over my head. Cheers…
Martin,
You’ve forgotten the component cost factor. As Apple showed last Xmas quarter, when they sell masses of one product (iPods) they can demand lower component costs. They made 1B then mostly because they sold 20 M ipods.
The same will bee true for Macs as they increase market share. And probably true for the iPhone too.
The point is that they don’t have to double their income to double their profit.
$600, $700, whatever…
“Chicken Little Fund Group”? “Chicken Little Growth Fund”? I mean, maybe it’s cos i’m not a local. But the name doesn’t really evoke a feeling of confidence to me!
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Everything is impossible until it isn’t.
Martin: Well, I know, $600 is +325% from now on, not from 2002. Sure you cannot add 2000%+325%, but remember AAPL rose by 20x in 5 years and it might be possible to rise by 3x in a similar time frame from now on if Apple’s market share will keep rising. Thumbs up but don’t bet on it.
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Thinking of pumping $15,000 into Apple while the Aussie dollar is kicking the yank at 92c. Pronanly make more than any bank will give me in interest.
I suppose the more who ‘chip in’ to Apple helps them as well.
I meant probably.
(MDN – edit functions would be handy)