AAPL: Pacific Crest Securities blew it

“Can we agree on something? Pacific Crest Securities blew it [yesterday] morning and have forever discredited themselves,” Dave Gordon writes for Three28Capital.

Pacific Crest analyst Andy Hargreaves “downgrading the stock to ‘sector perform’ giving it a price target between $440 and $550 for the next twelve months. The high-end market for smartphones and tablets are going to be saturated sooner than expected which will lead to poor growth for Apple.” Further, he explained that “demand for incremental hardware improvements is waning and [he doesn’t] believe people will continue to upgrade to a new iPhone.”

“They recommended to their clients that they sell Apple at the absolute low. They were shaken to the ‘core’ (forgive the pun) and downgraded shares of Apple on a faulty assumption,” Gordon writes. “In the short-term, Apple ≠ AAPL. But in the long run, they are one in the same. Technical’s may run the near-term price action, but fundamentals eventually take over.”

Read more in the full article – recommended – here.

MacDailyNews Take: Andy Hargreaves was admitted yesterday into our “loony bin” for AAPL analysts. That’s right: The Laura Goldman wing.

It’s an open-ended stay during which we predict much public flogging, crow consumption, and other schadenfreudian adventures.

Enjoy your stay, Andy! Like your new jacket?

Related article:
Pacific Crest: Apple’s iPhone business is going to be dead in the water; stock rangebound $440-$550 for next 12 months – January 16, 2013

26 Comments

  1. For those innocents that doubt the market manipulations by the big banks, GS, JPM, the usual suspects, just look at the LIBOR scam fix, the Facebook IPO etc., etc. they are at it all the time. This is where the profits and mega bonuses come from.great, time of day link:

    1. but, but, but… teh “free market”

      I love how its all free market all the time when Apple is doing well, but when it starts tanking everyone calls on the bogey-man (government/SEC) to “look into things” and everyone is sooooo surprised to find stock manipulation in the “free” market. That’s exactly how “free” markets work. And why they continually create bubbles and crashes. You either like them or you don’t.

      1. Your naïveté about the markets is showing. I’ll point you in the right direction. Research the following concepts:
        1- HFT aka high frequency trading
        2- naked short selling
        3- dark inquisition pools

        That’s how the markets are getting fucked up, and that’s mainly why it is far from a “free” market.

        1. Rather than throwing around insults, I will point out that modern advocates of the “free” market, such as libertarians, want a complete absence of government regulation. Those activities are completely acceptable under a regime of completely “free” markets. “Free” here means free from any government regulation. In free market ideology, if you aren’t in the clubs doing 1,2 or 3 above, its YOUR fault and YOU need to use your time and resources to get into them. In a totally free market collusion is not a problem, nor is secrecy. Agents are free to act in any way that advances profit.

            1. Well.. you obviously missed the “cogent” reply I handed you, but you got immediately butt hurt over the fact you are naive, and it was pointed out to you. So I guess that made your pea brain miss the fact that naked short selling is not legal, therefore not an acceptable practice in a free market. HFT coupled with naked short selling is a very big problem.. you never heard of a flash crash? There have been quite a few… And finally, a dark liquidity pool is a pool of stock made only available to preferred clientele before it goes to the “open and free” market you so wish existed.

              so yea. you are dumb. have no clue what you are talking about, and obviously have every intention of staying ignorant to the reality of the world around you. have fun with that (:

              oh yea, and your welcome for the down and dirty education on the state of the order flow in the “free” markets today.

            2. Well argued, indeed.
              A free market is most free when such transactions are NOT outlawed, something that modern day “free market” ideologues want (Rand, Ron Paul, amongst others). My original point was to show the hypocrisy of arguing on one hand that we need free markets, whilst on the other condemning the latest collusion around Apple stock loss. Only government can prevent such collusion and only government can outlaw it. But so many commenters on this site worship what they think is a “free” market, only to discover it isn’t and discover it isn’t when its convenient for them.

              Your lecture earlier had nothing to do with that point. But you missed that original point, told me I was naive, and then went on a rant, which by the way was quite mature. So perhaps it is you who need to do some “research”. Start with a little book called “The Wealth of Nations” and then head over to “On Protection to Agriculture”. I’d give you some contrarian texts, but then you’d probably yell and flail at them.
              Have a good day.

  2. Analysts have been calling the bottom with downgrades for years. They’ll hate a stock for years until it doubles or triples and magically reappears on their radar screen. Next they’ll be afraid to call a top and ride it down as the momentum reverses.

  3. The State of the Economy being what it is (I lost my job of 10 years in 2012 and my wife just found she’s losing hers next month), is why neither of us are upgrading “anything” near term. Has nothing to due with either of us not wanting to upgrade, it’s just the last 3-4 years has seen drastic changes to our bottom line.

  4. Aside from market gyrations, seems there is an underlying market concern about Apple’s ability to create on Tim Cook’s watch something new and groundbreaking ala iPod, iPhone, iPad. Meanwhile, Samsung and Google continue to replicate (with seeming impunity) Apple’s creations.

    While conventional wisdom would say a stellar quarter, strong bottom line, zero debt and expanding world-wide presence ought to be the mainstays of stock valuation, this market is all about “what are you going to do for me tomorrow”. Strange world we live in…strange world.

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