5 worries fund managers have about Apple

“A team of Credit Suisse analysts led by Kulbinder Garcha spent part of the past eight weeks meeting with 150 institutional investors to talk about Apple,” Philip Elmer-DeWitt reports for Fortune.

“Apparently, they got an earful, which they summarized in a note to clients Monday as five ‘key recurring questions and concerns,” P.E.D. reports.

5 worries fund managers have about Apple:

Concern 1: Does the iPad have a demand issue?
Concern 2: Are iPhone volumes reaching saturation?
Concern 3: Is Apple too big and aren’t shares over-owned?
Concern 4: What about Steve Jobs’ health?
Concern 5: What about the cash pile?

Read more in the full article here.

MacDailyNews Take: Our answers:
1) No.
2) No.
3) No.
4) We wish good health for Mr. Jobs and we’re very confident in Apple’s upper management
5) Surely Apple has plans for that cash, fund managers. Don’t worry your pretty little heads about it.

[Thanks to MacDailyNews Reader “sleiii” and “Arline M.” for the heads up.]

38 Comments

  1. as I’ve said before:

    apple needs to engage the investing world better. Big fund managers need to be soothed like children. (Apple is a ‘strange’ company, it’s gigantic and yet grows like a growth stock, conventionally trained fund managers don’t know what to make of it). Apple needs to explain to those fund managers (many of whom are tech clueless) what Apple’s prospects and roughly its game plan is (Apple needs to make a judgment on AMOUNT of ‘secrecy’ it needs vs it’s responsibilities to aapl investors : ‘unknowns’ scare the beejeebers out of many fund managers. see the article: ‘recurring concerns’. )

    Apple is so big now for it to grow it needs billions in new investment so they need to court big funds .

    in line with that Apple needs to declare dividends so that aapl can be bought by hundreds of dividend yield mutual and pension funds. Already much aapl has been sold off by ETF tracking the nasdaq due to the re balancing.

    Apple PR is among the WORSE in corporations. They’ve improved slightly recently with the quick response over the ‘tracking’ issue but generally they are poor. For example when Blodgets “iPhone dead in water” post went out and was quoted everywhere as ‘fact’ would it have killed Apple PR to release a short reminder that iPhone sales are up 113%? Yeah I know people say apple shouldn’t ‘stoop’ down to answer bloggers but look at aapl stock price … the Nasdaq and S&P average has been beating it for months.

    Big fund managers BELIEVE iOS vs Android is Mac vs PC again and apple is eventually going to lose (it’s garbage but that’s what they believe) and apple hasn’t done any real PR to defend itself . Another example: ‘Jobs Health concerns’ why doesn’t apple sooth the concerns by touting it’s internal ‘ Apple University’ run by Yale and Harvard professors to instil Steve Jobs philosophy to staff (this tidbit had to released by Fortune magazine) and remind everyone about it’s strong management bench – e.g Tim cook is a better ceo than Dells, HPs, Microsoft’s ? Fund managers with billions to invest have BIG EGOS and they want corporate senior managers to explain things to them .

    I’ve got a practically unknown consumer stock (company selling watches) that grew 46% while my aapl just sat there… Netflix and Amazon have PE’s in the 70s.

    enough already, apple needs to do more to protect it’s investors.

    1. “Apple is so big now for it to grow it needs billions in new investment so they need to court big funds .”

      Sorry Dave, but that is a ridiculous statement. Note how Apple’s liquidity increases over time, not decreases.

      Also, Apple runs beautifully as a company during what amounts to a worldwide economic depression. And you want to fix what’s not broken.

      Apple also has zero responsibility of interest in training the TechTardy investor. That is the investor’s sole responsibility. With time people catch up. Technology does not stop, certainly in Apple’s case, to hold classes in technology comprehension. Again, a ridiculous concept.

      I agree with a lot of what you state about fund managers and investors in general. Big egos, wanting things to be simple, totally addicted to the KISS Principle. It’s lameness like this that has lead to the horrendous state of world economics. It’s laziness. It’s the usual old civilization attitude of being ‘entitled’ to the money rather than having actually done the work, the research, the self-education, the follow-through to have actually EARNED the money.

      I say FRACK the lazy ‘entitled’ investor. They get what they deserve, and what they got was an economic depression. Brilliantly run companies like Apple are too good for them. Apple makes money from its hard work no matter what the lazy and ignorant quadrant of investors do with their money.

      A fool and his money…

  2. It just goes to show that even with all the advantages of a world of money Wall Street is still controled by the guys you never would have picked to be on your team. Even when they have everything needed to make a breakout play they’re too afraid to act. They only do what their peers expect them to do.

    Apple is doing what no company has ever done and Wall Street’s reaction is to cower in fear. As an individual investor my fear is that Apple will justifiablly go private and shut out the loyal long individual investor.

  3. THIS is how you manipulate a stock’s price in the market:

    FUD!
    Does the iPad have a demand issue?
    FUD!
    Are iPhone volumes reaching saturation?
    FUD!
    Is Apple too big and aren’t shares over-owned?
    FUD!
    What about Steve Jobs’ health?
    FUD!
    What about the cash pile?

    Meanwhile, the FUD mongerers buy up the stock while the market doesn’t notice and make a KILLING when the stock jumps to its actual value. This is biznizz.

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