Monday, September 29, 2008

RBC And Morgan Stanley Kill Apple

Both Morgan Stanley and RBC today dowgraded Apple siting well known factors ((narrows margins tough economy) as reasons for the downgrade.

The truth is hard to swallow but significant motivation for this downgrade comes out of the hive mind of wall street. The economy is bad. We said Apple is going to hit $200. That's not going to happen so downgrade now that way next year they can be right when the price surges.

Apple has 21-3 billion in the bank and growth of iPhone and mac are slowing (as in not shrinking). Iphone is growing crazy fast and earnings are banker already for the next 24 months.

No debt! Yea No dividend boooo.

If Apple gets any cheaper one of the private equity outfits will buy buy them. Look. If you subtract the cash. Apple is selling for 14x earnings. This is not GM. They do not have any exposure to sub-prime.

Writer is long Apple. And thinks these Analysts are more likely to bet close to each other than what they think the company will do because if everyone is wrong nobody get fired

Posted with LifeCast


Anonymous said...

Sad isn't it they can second guess wrongly and caused a company's share price to lose heavily yet no action taken against them.
So what stop them from abusing their privilege as an anal yst.

Anonymous said...

I wonder if APPL was widely held by whiny, basement dwelling, would be iPhone developers. ;P

Apple can only gain a better relative position compared to its rivals, given its non-dependence on enterprise sales and low-end consumers. Those are the areas likely to be hit hardest by an economic downturn.