04/11/2006, 10:30am, EDT
Tuesday, April 11th
AAPL to report 2nd best quarter?
Citing the recent 16 percent run-up in Apple shares, Wu said he would not be surprised to see a pullback post-print. The analyst said he finds Apple's valuation very inexpensive, and suspects the company is ready to deliver upside with strong second-half seasonality along with solid product momentum, including a new low-cost Intel portable notebook and changes in its iPod line-up.
"We find the risk-reward on Apple shares attractive trading at 26x our calendar year 07 EPS of $2.59 (22x excluding net cash), indicating a PEG ratio of 0.8 for a company we are modeling to grow 35 percent over the next 12 months," Wu wrote.
The analyst thinks Apple's move to digital entertainment is a multi-year trend, and that the company is ready to capitalize with its unique, defendable iPod + iTunes and Mac franchises.
"We believe Apple is well-positioned to continue above market growth rates with arguably the industry's most powerful and complete stack of hardware, software, and service addressing the digital entertainment space," Wu noted.
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I think it will split 5 times, at least, which would make it a big money maker for all long haulers...
In the time frame of 1 to 5 years, AAPL will most likely be up significantly. In the time frame of a few days, it is unpredictable.
Who says it is? Stock prices go up because more people want to buy then want to sell. It goes down for the exact opposite reason. Once it hit $85, you had to believe it was going to sell, because there are those who want to lock in their gains. Then, as that drives the price down, others do the same, knowing they can rebuy once it flattens.
But, besides that, it hasn't moved much since it flattened out at $62 or so (with the exception of the spike after the boot camp announcement). But that just means no one's buying (or there's no demand). And why should there be. Nothing's happening with the company at this point to warrant a purchase. Sure, long term, you could argue, but most large investors don't invest long term. That's why they cared when apple said Q2 would be down, because they cared about 3 months, not 3 years.
I can see why one would dump other casual stocks held in a portfolio but AAPL?? If people would simply take a moment to 'THINK" sensibly dammit.
Right, other stocks are casual, but Apple stock is for 'real' investing, and should not be cut loose ever.
Pathetic that the only way to make money on a growing stock is to short it!
Hey, its the stock market. Since when does anything have to make sense?
And why does any of this bother you? Right now, you should be buying more and laughing at all the idiots who sold, knowing you'll be raking in the dough. If you're investing for the long-term, who cares if apple stock plunges to $60 a share, let alone to $10? You know it'll fly back up to new heights, splitting 5 times in the next 10 years (yeah, right, ain't going to happen) and you'll be laughing all the more to the bank.
Oh, and i love how you nicely want everyone out of the investing world except those that 'know' what they're doing (which is odd, because most of the people who supposedly know what they're doing are usually slammed for saying negative things about apple). And, BTW, a lot of those novices are also buying apple despite analysts, because they like the company.