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If cutting Apple (AAPL) targets is an Olympic sport, Nomura wins the gold, slashing its price...
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Tuesday, January 15, 7:52 AM ETIf cutting Apple (AAPL) targets is an Olympic sport, Nomura wins the gold, slashing its price target to $530 from $660, with the analysts proving they read the paper by citing worries over iPhone sales and gross margins.
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This news story has 58 comments:
They dont need to provide support to anything they say. Just throw the words to the wind.
Maybe i lack sophistication to understand what is going on. Right now the market stopped making sense to me. I have no respect for analysts. Market behavior is not rational.... Today the market will shoot a company stock up to the sky... They love love love it for awhile. Suddenly it falls from grace for whatever reason and they shoot it down.
This looks more like dog kill dog fight. One dog attacks and all the other dogs joins in just for the heck of it.
Darn!!! This is really getting sooo old! Tim cook should buy back apple stocks with every single dollar they can afford, after off course allocating handsomely for R&D. If only they had enough Money to privatise apple these idiots would maybe find another company to destroy and give them a breather.
I feel there will be a leveling of that market but that Apple will continue to broaden their ecosystem's reach.
the LA Times article adds this:
"Like many Apple rumors and stories, however, this latest development was open to different interpretations. Many analysts and independent observers suggested indications that Apple had cut its outlook for the iPhone 5 by as much as half seemed extreme, given recent reports of strong smartphone sales by Verizon Wireless and AT&T.
Wolf, the Needham analyst, suggested an alternative explanation to reports that Apple needed fewer screens. Because the iPhone 5 had a longer screen than prior versions, he said, suppliers at first had a hard time manufacturing them, so Apple had to over-order screens because the rates, or "yields," of acceptable screens out of each batch was low. It's possible manufacturers have become more efficient, producing fewer duds and allowing Apple to reduce its orders for screens."
Another aspect of the screen counts is that assembly breakage has likely gone to zero now that the Foxconn production lines are 100% up the learning curve. Prepare for Tim Cook's revenge on all these #$%$ shorts and naysayers on the 23rd... he's sicker than anyone about the dissing of his leadership, AAPL performance, stock price action and what that means to employee morale, and moving the company forward to the next level. His royal flush of all this is coming next week when the bill for "betting against aapl" comes due. Less
With the beating the stock has taken and the ridiculous amount of cash they have, if Apple's leadership believes that the stock is seriously undervalued then they should initiate a buyback level to support the stock. It's what Buffett did when the market decided to sell Berkshire - he reaffirmed the value by committing to buy back below a certain level.
Apple has many tools at their disposal, one being to stop letting the price be whipsawed by non-stop rumours. To have shareholders suffer through the volatility we've seen when the company has the ability to mitigate it does not indicate a shareholder-friendly approach.
For the record I don't think Tim Cook needs to go but I do think Apple needs to SERIOUSLY revisit their approaches on a couple different fronts. Maybe that's what the new CFO will do?
Go look at my past posts..Sorry to bust your bubble. Too much competition, vendors are getting hit hard as well. How often do you really need to add a new phone?
Time is up !
It is called a recession, unemployment, reigning in spending, etc..
Happening to a ton of companies and Apple is no different..imo.
A former fan boy of Apple when it was really a Geek company (remember the Newton or the original Optical Hard drive) which no longer it is.
At this rate Apple won't even bother with an iPhone 6.
Then how will you get up in the morning?
Wish I had enough money and pull to wear I could make up news on a company before earnings to tank the stock price, pick up shares, then say I made a mistake when the company beats earnings, and make a boat load of cash.
And do this 4 times a year.
The people at Apple make high tech things that people want to buy, and the people holding Apple stock sell because they are scared.
Then, there are the "smart" people that take advantage of their scared brethren and manipulate the stock so they can make a ton of money.
I would like to know what the smart people are doing.
That's an interesting perspective.
It could be that Apple wants to keep to themselves until they actually lauch their next big thing (if it exists). They want to get a head-start on competition before all the me-too's flood the market.
1. Obviously AAPL has had enormous price drops in the past, in which blowout quarters immediately reversed (iphone 4S release)
2. AAPL management obviously knows how the company is performing, and obviously sees the stock price. Many people seem annoyed that AAPL management is not correcting the statements being made by every analyst and little reporter out there. I myself believe the bears are planting most of these stories or contorting information to serve their needs. However, AAPL is sitting on 130 billion dollars. Do you think if they knew that their company is out of ideas, and their products werent selling, they would not disperse some of tha cash? Obviously it is not in apples best interests to allow the stock to fall to 400, which is where it's going if they miss this quarter. Apple can easily become a single digit growth company and be 800 a share if they were to disperse some of their cash pile. Imagine the stock response to a 5% dividend, which apple could easily afford. To me, Apple's silence (which has always been their policy) should be considered a positive, because IMO it means they are confident that their results will speak for themselves in the January earnings report and moving forward in 2013. Just think, Tim Cook plans to more than double their retail presence in China, how hard will it be for apple to achieve even a 10% CAGR? Not hard at all.
Does anyone truly believe history bears this out?
The Investment Firms that are downgrading Apple are the ones that failed to purchase shares, so they issue negative news and downgrades so they can get in cheap.
The Investment Firms that remain neutral or upgrade the stock have a long position or purchased the stock at a higher price than it currently is at and need the price to go up or remain the same.