Analyst: Investors have ‘zero confidence’ in Apple management

“I don’t know what to think about Global Equities’ Trip Chowdhry, the sole proprietor of tiny research firm with an outsized media presence,” Philip Elmer-DeWitt reports for Fortune.

“I used to see him as a kind of Wall Street troll — a provocateur who offered contrarian opinions about Apple just to get on CNBC,” P.E.D. reports. “See, for example, the 2014 Chowdhry pronouncement about the Apple Watch singled out by The Motley Fool as ‘the worst analyst’s call in history.'”

Today, Chowdhry offers up “six reasons Apple investors have ‘zero confidence Apple’s current Management and Apple’s Board,'” P.E.D. reports.

Read more in the full article here.

MacDailyNews Take:

Global Equities Research analyst Trip Chowdhry
Global Equities Research analyst Trip Chowdhry
We don’t call him Trippy Chowderhead for nothin’!

They only have 60 days left to either come up with something or they will disappear. It will take years for Apple’s $130 billion in cash to vanish, but it will become an irrelevant company … it will become a zombie, if they don’t come up with an iWatch. — Trip Chowdhry, Global Equities Research, March 20, 2014

SEE ALSO:
Analyst: Apple to unveil Apple TV App Store as soon as next week – October 8, 2014
Apple secretly developing a 3D printer? – May 16, 2014
iWatch: Apple is not here to entertain you – April 14, 2014
Fire Tim Cook? Absurd. Cook has added $140 billion to Apple shareholder value since becoming CEO – March 19, 2014
Apple can’t replace Steve Jobs, but it must try or something – March 12, 2014

58 Comments

    1. Tim Cook is abysmal.

      To cite all the mistakes he’s made would be like compiling an encyclopedia Britanica!

      He also unprofessionally interjects his personal politics on all employees that he supervises; those who may not share his views but fear speaking out at the risk of reprisal. In essence, bullying via bully pulpit!

      On a CEO level, he is not an innovator and he has shown himself to be incompetent when it comes to developing products and launching new products.

  1. Since Jobs’ death we have gotten uglier, buggier operating systems, the computers have become progressively less expandable and upgradable (though more stylish), the phones thinner and thinner despite the majority of iPhone users wanting better battery life. Tech support has deteriorated and things aren’t getting better. This will eventually effect sales, so I can’t disagree with this analyst.

    1. Don’t forget to mention that Apple store geniuses that are perpetually annoyed to have to interact with customers. Seriously, does Apple make a conscience effort to hire staff that are short tempered and arrogant.

            1. I just went last Sunday to have my iPhone 6 Plus camera replaced and while they were busy as hell my Genius was as cordial as ever. Maybe because I was too. Think about it.

              Actually the thing that surprised me was the diversity of people there in a middle to upper middle class neighborhood. It wasn’t just a bunch of white bread boys and girls, Apple appeals across the ethnic board.

            2. “…my Genius was as cordial as ever. Maybe because I was too.”

              I used to have a customer service job. EVERYBODY working there did exactly that. When people were cordial, they got better service. When pushy or belligerent, they got the minimum required to keep our jobs.

      1. Why have to go through the expense of getting a battery case which will make the phone larger and heavier when adding a few mm to the thickness of the iPhone would allow for a higher capacity battery and possibly OIS to the smaller phone and have a minimal impact on size?

        60% of iPhone users want this (according to Jony Ive) but he refuses. Not giving the customers what they’ve been asking for for years is a good way of sending them to other manufacturers.

        As a stockholder and user of their products, this attitude concerns me.

    2. I would like to point out that Choudry said nothing about any of your points. All he was talking about were points of financial engineering.

      The wizards of wall street don’t give a crap about product or service quality. This is why most companies are heavily incentivized by wall street to maximize profit by cutting product costs, not by maximizing quality.

      If you think Apple quality is so bad please go buy yourself an Amazon Fire phone since they are on clearance.

  2. Hurling insults, yeah, that’s gonna change their thinking. Think of all the wars and conflicts that could have been avoided if people choose first to slur and denigrate. Fanboys are the world’s most brilliant diplomats and intellectuals.

  3. The stock actually is priced as if there is zero confidence. However, it was always priced for imminent failure even when Jobs was in charge, so this is nothing new.

    This is a complete no-win situation for management.

    Tim Cook and company have done EVERYTHING that “investors” were demanding (share buybacks and dividends), yet they still are not happy.

    I disagree with Choudry that taking debt to fund buybacks is crazy, particularly in this case as the interest rates Apple is paying on it’s bonds make them virtually free loans and the cash flows will support the payments for a VERY long time. But because the buybacks don’t seem to be supporting the share price, someone like Choudry would say putting ALL that money toward dividends probably would be a better choice for capital return. However, they would need to repatriate the foreign earnings for dividend payments (or to buy back with cash), and even if Choudry’s claims are true that SOME investors are calling for Apple to just pay the taxes and bring the money back, many of those same investors would crucify Apple management the minute the effective tax rate increased significantly and hit Apple earnings.

    I wish that Tim Cook had the same power that Steve Jobs had to tell the “investors” on wall street to go screw themselves, but he doesn’t and will have to keep playing to them.

    1. It’s not that Tim Cook doesn’t have the power…

      Action speaks louder than words and silence is golden, Tim keeps his cards and plays them when and as needed, only a fool will show or talk a out his/her intetions in a high stake game.

      Apple doesn’t has the most envious leigons of ever loyal fans and investors in the worls because “they have zero confidence” in its managment, quite the opposite, chowder head.

    2. I don’t think that Tim Cook and Apple have bad relations with the investors in general. Tim and the others in the board get reflected every year with 99% or better support. It is the TV pundits and some institutional investors that try to jerk AAPL around.

  4. Just when you think that analysts can’t get any more stupid, they come up with stuff like that.

    Analysts may not be smart enough to understand WHY Apple is such a successful company, but they should understand that Apple clearly IS a wildly successful company. A company doesn’t just happen to make more money than any other by chance, it needs clever management to keep succeeding.

    However my real dispute is the way that he tries to use the word investors, when what he really means is speculators. Investors don’t buy and sell on the whims of an analyst who consistently fails to predict what Apple is doing.

    In a field where there are so many analysts with appalling track records, Trip Chowdhry distinguishes himself by consistently managing to get things even more wrong than most.

  5. If he said that Apple is fine, doing great, no one would have ever heard of him. Bad mouthing on the other hand Apple gets him on TV and lots of clicks from irate Apple appreciators. That kind of publicity is normally expensive. He’s getting it for freeeee!

  6. He’s been telling his clients for years not to buy Apple, so shouldn’t he be happy that it’s doing so “poorly” and managment doesn’t care about making the stock go up?

    1. I’m an investor to and share the same sentiment. There is no revolution from stock holders to replace Tim Cook, he’s doing a fine job.

      For all those statistics that others like to toss around, here’s one question to consider:

      Has Apple stock gone up or down in value since Tim Cook came over?

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