Notablecalls is out with another interesting comment on Apple. There has been some concerns lately on possible production cut by Apple on hot selling iPhone. Goldman is now defending Apple stock, citing short pullback that the stock experienced last two days as buying opportunity. It seems as though a little production pullback is natural after a huge ramp up in anticipation of the iPhone introduction. The demand will definitely subside as the initial fervor around iPhone abate. However, I know several people are already waiting for cheaper version of iPhone which will be probably released by the end of this year. I have seen this device and it is one of the best tech inventions both in style and in terms of ease of use.
I continue to expect that short term, the stock could remain volatile as people try to lock in their profit after such a huge runup. However, I continue to expect positive sentiment in the tech land as the money will rotate out of energy and commodity into tech stocks. And Apple will be one of the favorite tech names. I expect with iphone Apple is in a position to increase PC sales as Ipod and Iphone sales lead to mo synergy with PC sales. I would use the dip as a buying opportunity. Notablecalls is a little more bearish on the stock but I have to agree with Goldman on Apple.
Apple (NASDAQ:AAPL): Color on iPhone cuts
- Goldman Sachs notes that after the Street's reset of overly optimistic iPhone estimates for calendar 2007 last week post Apple's (NASDAQ:AAPL) earnings, they view downward adjustments to Apple's build plan as backward looking. Firm's supply chain checks suggest that Apple has pulled down its build plan for iPhone but, while the magnitude is imprecise, the numbers that we are hearing still leave upside possibilities to GSCO's 2.8 million estimate for 2007. With Apple in the midst of a series of major product cycles, recent history has shown that pullbacks in the stock such as we have been seeing in the last few days are exactly the sorts of buying opportunities that investors should be taking advantage of.
Important to bear in mind is that what is going on with the supply chain now follows a well-established pattern for Apple that the firm has seen play out several times already with iPod, in each instance not a good indicator of actual demand. Specifically, in front of a new product launch, Apple secures initial manufacturing capacity for a larger number of units than it will ultimately need and then adjusts capacity downward to more realistic levels over time. The supply chain cuts taking place now for iPhone bring the build plan more in line with firm's current sell-out expectations
GSCO continues to see multiple upside opportunities for Apple.
Notablecalls: AAPL took a hit yesterday on rumors of iPhone production being cut. Goldman gives us the scoop. Looks like a non-event. Note that AAPL is up 1.5% this AM as Citigroup is taking their rating to Buy from Hold following yesterday's $10 pullback saying iPhone and iPod production cuts should not be a surprise, saying iPod production cuts reflect normal channel inventory clearance ahead of Aug/Sep new price product intros.
Two firms out with positive comments and the stock is up a platry 1.5%. To me this is a tell. A negative one.
The current stocks in that I cover are: Filthy Rich Tech ideas (comprised of Openwave, Avid Technology, Tivo, IBM, and Research in Motion), Filthy Rich Biotech ideas (comprised of Amgen, Celgene, Genzyme, Isis pharmaceuticals, Alnylam pharmaceutical, and Protein Design Lab), Filthy Rich Financial ideas (JP Morgan and Goldman Sachs), Filthy Rich China ideas (Focus Media Holding and Ctrip.com), Filthy Rich Transportation ideas ( American Airline and Southwest Airline), and Filthy Rich Specialty Retail ideas (Peet's coffee)
Please check out the archives for past posting on individual stocks. Also market commentary and weekly communication on the core holding list are available at www.investorhives.com on a membership basis. The membership is free for everyone. Simply apply for filthyrich hive membership at www.investorhives.com. Thank you for visiting my blog.
Subscribe to:
Post Comments (Atom)
1 comment:
Who SOLD OUT a piece of national treasure vital to our survival, to Russians, dirt cheap? On paragraph 4.
Watch out SWC on monday for earnings release after hour. Crooks knocked down SWC from $16.47 to $8.56 in less than 3 months, for no good reason. Maybe they want to sell the remainder to Russians cheap?
Deeply oversold, I expect a blowout SWC quarterly earning, and from here SWC MUST have a dramatic reversal and a great rally on the good earnings. Don't let go of the opportunity!
Post a Comment