Channon

Apple and RIM: The Spoils Go to the Smartest

Economyst: AAPL defers iPhone revenue over 8 quarters. An iPhone sold in Oct 2008 was only 1/8th recognized in Q4 08. July 08, only 1/4th recognized, etc.

The bloggers have been pointing this out for years. Morgan Stanley just noticed, and quite hilariously, after having told their clients to sell at $80, just decided to tell them to buy at $135. Having missed $55 in gains, they think there is another $45 in upside. Perhaps that means it's time to sell...

Buy, Sell or Hold: Research in Motion Poised to Snag More Market Share

The item that trips up most analysts when comparing AAPL to RIMM, including Mr. Marquez here, is AAPL's whopping cash position. Three months ago, AAPL now had about $27/share in cash; that is now well above $28. When buying a share of AAPL, one is buying that $28 in cash, compared to about $3 when buying a share of RIMM. Want to compare the two companies' P/Es and PEG Ratios? Back out the cash per share from each share price first, since the remainder is what one is truly paying for the future business.