StreetInsider is reporting this morning:
Citi analyst says, “Following field checks in Asia, we remain comfortable with our above consensus revenue and EPS estimates for 3CQ08. New products, iPhone geographic expansion and sharp declines in key component prices also bode well for upside in 4CQ08. Finally, valuation is attractive at 13X forward free cash flow… Field checks confirm that shipments of new MacBooks have begun, with a sharp production ramp planned for Sept and an introduction planned for early October. The most distinctive features of the new MacBook appear to be a very thin aluminum casing, an LED-backlit display and an aggressive entry-level price point.”
Full article here.
[Thanks to MacDailyNews Reader “Michael” for the heads up.]
I see all these buy quotes for Apple yet the stock keeps going DOWN!!!!
IDIOTS!!!!!!!!!!!
YOU MISSED THE BIG NEWS IN THIS STORY:
This is the first time an analyst is publicly valuing AAPL on a forward cash flow basis instead of a P/E basis. HUGE b/c it accounts for massive iPhone deferred revs that would otherwise be missing from a more traditional analysis of this stock’s true value.
http://www.macobserver.com/forums/viewtopic.php?t=71164
multi-touch iTablet?
Bring back $999!
Bring back $999!
Bring back $999!
Bring back $999!
Bring back $999!
i wouldn’t mind aggressive prices on a notebook the same month i should be in the market for one. yeah, lets go for that…..
Pretty bold prediction considering the world is headed for recession, if not depression because of the global financial meltdown.
Anyway, at actual price (substantially lower that dec 2007), with Mac success + iPhone Success + App Store success…
AAPL is a stock i hope to keep for 10 years (if they still innovate as much) !
Could be at $1.000 some day (20% market share on computers + significative % market share on phones)
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Good trades (or not) to all
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@uh oh
Please tell me, oh prognosticator of prognosticators, will you be employed in the coming depression? Will the hurricane season continue to worsen? Will the Giants win the Super Bowl again in 2009? Will Jessica Simpson still go country?
Damn, if the future is so transparent to your mystical eyes, PLEASE post a blog so we can all see it together, OK?
NOBODY GETS IT!!!
Incomes have stagnated over the last 10 years and the cost of goods have tripled from food and energy to insurance and healthcare.
The TRUE rate of inflation is probably 20%
All middle income jobs are now outsourced to India and China and you have a government intent on spending more $$$ on killing and killing machines than helping the domestic consumer tread water.
I cannot belive that the markets haven’t been chopped by at least 50%…it’s coming!!!
Japan’s high was 50,000 and it fell to 10,000, an 80% decline, and has traded sideways for the last 17 years.
I don’t care what you want to call it.
We are in the 1st innings of a major global DEPRESSION with the US being hit the hardest.
… better get used to eating leftovers 🙁
Guys like ‘uh oh’ do not understand the concept or the reality of ‘sea change’.
@Randian: Yes, no, no and yes.
nobody gets it but you i guess… how did you type that comment from your hut by the river? Take a break from food gathering? It’s tough living in the greatest country in the world…
iMac with PA Semi quicktime co processor…
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Lumi
Good job, you’re on it. P/E multiples based on accounting earnings miss way wide when trying to value AAPL. AAPL’s free cash flow is like a freight train.
Rocket Scientist…your name is not appropriate to your intelligence.
Hysteria like yours above is silly.
Meanwhile, the importance of that piece of news from Citi CANNOT BE UNDERISTIMATED.
Apple is going for marketshare in a major way.
Rocket scientist (cough cough)-
Usually, I try not to cook more food then the meal requires. But when there’s leftovers, I eat them, have been for years.
So what?
You just toss out your leftovers? Sheesh, you must be spoiled. No wonder you are all freaked out.
(haha)
I’m pretty sure uh oh and Rocket Scientist are being sarcastic…
You all need cool tall glass of Camel Milk
Good news finally, maybe I’ll get a Mac Book to replace my Mac Mini.
Rocket Scientist is actually right on some points. Former Federal Reserve chairman Greenspan says the problems we’ve got right now with Wall Street and the economy are the worst in a hundred years.
Will we see a $799 or $899 entry price point and what features would it have? No optical drive, combo drive, or super drive. I vote none, with option for external. 2 GHz C2D, but with X3100 integrated graphics or will it be better (X4500)? I say X4500 starts at over $1000. Two gig or 1 gig of RAM? Probably 1 GHz. Multitouch trackpad or not, why not, this will eat into the competition at that low end, but it won’t be glass.
“AAPL’s free cash flow is like a freight train.”
Using DCF analysis, all you have to believe to like $287 as a number is that Apple will grow at at 20% rate for the next decade, increasing revenue by a factor of five times.
Impossible? No. Likely? No.
“This is the first time an analyst is publicly valuing AAPL on a forward cash flow basis instead of a P/E basis. “
No-body other than Mom and Pop Kettle use P/E to value shares these days.
Aggressively priced. What does that mean? Now only twice the price of the equivalent Microsoft machine? And in red as well.
If Microsoft made a machine, it would not sell at any price.
Rocket Scientist,
Even in a depression, not all companies go belly-up. J. Paul Getty made the bulk of his fortune by buying shares during the depression.
-jcr
Nobody should be using P/E to value shares today, but it’s always reported. FCF and EBITDA are always buried.