Analyst: ‘iCard’ would make Apple shares a steal

“The best that can be said for the stock market over the past few weeks is that the sea of red makes winners easier to find. Yesterday when the NASDAQ was getting beaten absolutely senseless, shares of Apple (AAPL) were actually able to find some buyers,” Jeff Macke reports for Yahoo Finance. “In fact, since Apple blew up after weak a earnings report last Monday the stock has consistently had support every time it dropped below the big round number of $500.”

“Whatever you think of the long term prospects for the company, from a trading perspective it’s starting to look like $500 is a decent place to try a long position with a tight stop,” Macke reports. “Jeff Kilburg of KKM Financial makes the case that Apple shares might even be a good buy for the long term.”

“Noting the stock hasn’t done much over the last 12 months, Kilburg says investor pessimism surrounding Apple’s apparent inability to come up with the next big thing in tech has been overdone. ‘Apple doesn’t need this revolutionary product,’ Killer insists. ‘They need to sell iPhones and sell iPads in China. That’s it,'” Macke reports. “If it did take something fresh and exciting to get the shares jumping for the longer term Kilburg argues there’s an answer that doesn’t involve creating a great new device. There are already 575 million rabidly loyal iTunes customers spending billions on apps and digital content. Turning them into users of an ‘iCard’ and going into more mobile payments is a massive source of untapped potential income most investors haven’t even considered yet.”

Watch the video here.

20 Comments

    1. ““Noting the stock hasn’t done much over the last 12 months, Kilburg says investor pessimism surrounding Apple’s apparent inability to come up with the next big thing in tech has been overdone.”

      The last 12 months? Let’s see, I remember buying a bunch of AAPL on July 1, 2013 at $402. I’m up $100 per share, but I guess that’s “nothing”.

  1. Apple shares a steal? Gimme a break. Apple already dropped $44 before the recent market collapse. That 8% drop from earnings wasn’t exactly a tender kiss. YTD share performance still looks pretty sick compared to many other tech stocks. Buybacks aren’t doing a damn thing if Apple is considered undervalued. A weak earnings report? Can you believe that. I give up. I’d sure like to know exactly how many iPhones Apple has to sell to move the stock upward. Whatever amount the analysts say they should? Insane. Apple will always fall short if that’s the case.

    Now it’s some iCard that investors haven’t realized could give Apple growth. Apple seems to be a fountain of untapped potential that almost no one gives a damn about because Wall Street is waiting for the next big thing whatever the hell that’s supposed to be. And when it comes let’s see how long that euphoria lasts.

  2. When it comes to Apple, Wall Street tends to raise the expecting numbers real real real high up to the sky so Apple can’t reach to those numbers, then Apple fails to the ground.

  3. Thanks to Google cum Samsung. The market-share kinda mentality dominates thus dictates the perceived stock’s potentiality. Oh, and thanks to the US government (North Korea must be smirking all along) cum Amazon too… Judge Cote and Koh and that Brown..i…e…s.

    We talk not about good works now, we talk about the stock market and opportunities, and we drive it they marketing and politics. Good work by faith has been long gone.

    Having said that, Apple should be more strategical and tactical with their marketing maneuver. iPhone 5C also is a good lesson.

  4. Totally wrong!

    For ANY business to survive it has to introduce new products and services.

    Reason being is the products they make become obsolete (look at the iPod for that. It’s now just software on the iPhone)

    Apple HAS to bring out new product or the company will die – simple as that.

    And that my friends is business.

    1. Bit of an exaggeration. It can be either new products in a market where your older products are always going to be replaced different forms of products at some stage yes iPod, cd, horse drawn carriages et al. And you can be in a business where the product just evolves so you need to be at the forefront of that evolution i.e. cars, aircraft, cook books. And yes the list isn’t static over very long periods the latter can on occasion become the former and some product groups i.e. cameras straddle the two but in effect the logic is still relevant.

      Apple is in both camps here, many of its products are ‘evolvers’ unlike the iPod example. I don’t think a product like the iPad, the iPhone and even much of the Mac product range is going to disappear overnight due to a completely different technology so developing products such as these and evolving them is still gong to be the core of Apples business. Creating completely new products for the sake of it in fear of your present business collapsing is not a great policy (ask Sony) it has to be calm and sensible and exploit opportunities as they arise or are envisaged which is exactly what SJ was so good at. This involves evolving existing products (sometimes into effectively new ones i.e. iPod to iPhone) and on occasion introducing a new product into a market where it can succeed. And that latter is a magical quality that is difficult to force.

    2. Has Mercedes or Ford come out with any new products? No, they just updated and improved existing products. I still don’t have a flying car and have to rely on wheels to be transported around.

      Has Walmart suddenly developed teleportation so that when I need something, it magically appears in my house? No, I still have to go to Walmart today to buy paper and ink for my printer. Sure, I could order it online, but that’s not really that different, is it?

      Apple could survive for decades just updating its Macs, iPhones and iPads. Just look at Microsoft. But it must update and continue to create value and new, useful features. Again, look at Microsoft, which has tried to add “features”, most of which are not useful, and thus Microsoft is starting to teeter and in danger of falling down into a has-been, like JC Pennys or Sears.

  5. Analysts are doing what they usually do, which is to see which way AAPL is moving and then offer some sort of explanation for that movement.

    I sold AAPL shortly before the earnings statement and bought them again ( plus extra for the same money ) once they dipped to $499 and have been pleased with the run up this week. However although I consider the shares to be undervalued and with tremendous prospects, some part of that recent run might be attributable to the qualifying date for dividend payment ( yesterday ). My hunch is that AAPL will drop somewhat for the rest of the week and it won’t be until next week that we can judge what the short-term trajectory will be like.

    It’s certainly good that some analysts are finally saying that Apple’s fundamentals are excellent, with a lot of potential for the future, but it’s a shame that they didn’t say that when earnings exceed guidance and reached record levels, but failed to reach the heights that analysts had wrongly imagined might be possible.

  6. The “experts” just do not get it. Their viewpoint is SO short-term. For a long-term investor, all you have to look at are the “infection points” when AAPL hits its lows. The LOWS keep getting higher. And not just a little higher each time…

    The all-time low point was in the late 1990’s when AAPL was in the single digits. From there, AAPL rose more or less steadily to over $200, before dropping below $80. So that first low (after the initial starting ultra-low) was about $80.

    Then AAPL crazily rose to over $700, before dropping to under $400. Then, AAPL recently climbed to above $550 during a very short period, before dropping below $500. And $500 appears to be a “base.”

    Each time AAPL “goes negative” in mass media coverage and general public opinion, the decline is to a higher number. $80, $400, $500… Those are the LOW POINTS! At this rate, in a few years, the “experts” will be discussing and lamenting AAPL’s disappointing drop to below $1000.

    When the lows keeping getting higher, remember that there are highs between the lows. 🙂

    1. Wish I had an extra pile of cash to buy AAPL now. My little 17 share pile has doubled in value since 2010. I agree, they’ll be discussing a $1000 base in 3.5-4 years. With 10% of the US corporate cash, they can weather just about anything. And their P/E ratio is low for their performance. Once the investing community realizes that they’re missing an opportunity, and the recent $500 floor should give the nervous Nellies some faith.

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