Apple stock has been a high flier for the last 10 years. One anlayst thinks Apple stock could even soar to $600. Ticonderoga Securities thinks Apple’s stock could skyrocket north of $600.
This bold prediction was made after CNBC reported, Apple has just inked a Iphone deal with China mobile. Analyst prediction was based on the following facts:-
- China Mobile is the world’s largest wireless carrier, which has 611 million wireless subscribers.
- In the US, when Verizon got hold of the Iphone, we saw a rise in demand in Iphone. This trend could repeat in China
- Heavy option buying on Apple stock.
written by Constantine Njeru
\\ tags: 10 Years, Apple Stock, Bold Prediction, Buying Stock, China Mobile, Cnbc, High Flier, Iphone, Nbsp, Soar, Ticonderoga, Verizon, Wireless Carrier, Wireless Subscribers
Verizon finaly gots it’s hands on the Iphone, the big question is how the Iphone will impact on Verizon Revenues, profits and ultimately Verizon stock.
When Verizon reported their 2010 financial results, Verizon communications Executives projected revenue growth of between 4% and 8% in 2011, well above 2010′s 1.9%. They also estimate 11 million IPhone activations this year.
11 million iPhone activations is not peanuts, but keep in mind Verizon is spending near $4 – 5 Billion to subsidise the Iphone. That means the Iphone subsidy will eat into the profits.
Verizon stock prediction / forecast 2011
Verizon shares are currently trading 16 times 2011 forecast and historically the shares EPS has been 15. The stock now seems to be as high as it can get for 2011.
Expect the stock upside to happen, starting in 2012, because that is when the company will start showing the benefits of investing in Iphone. When announcing 2010 results, the company said it expected earnings-per-share growth in 2012 to about double 2011 number.
To quote Verizon executives thoughts on the future of the company “really explode over the next several years.”
written by Constantine Njeru
\\ tags: Earnings Per Share, Financial Executives, Iphone, Iphone Activations, Peanuts, Profits, Quote, Share Growth, Stock Forecast, Stock Prediction, Stock Shares, Subsidy, Verizon, Verizon Communications, Verizon Stock, Year 11
The following stocks were included in Goldman Sachs stock picks for 2011. Goldman Sachs analyst think the 10 stock offer the greatest 2011 upside potential.
- Starbucks – Coffee Chain
- Apple – Makers of bestselling Ipad & Iphone
- Phillips-Van Heusen- clothes, parent of Calvin Klein
- Hasbro- Toy maker
- Precision Castparts – Aerospace supplier
- Blackstone- investments company
- Sapient – business & government consultancy
- Chicago Bridge & Iron – construction & engineering
- Crown Castle – owns, operates and leases wireless communications towers.
- Digital Realty Trust – a data-center real estate investment trust
For detailed analysis of this stocks: Check thestreet post on Goldman Sachs Picks.
written by Constantine Njeru
\\ tags: Aerospace Supplier, Blackstone, Chicago Bridge, Crown Castle, Digital Realty, Estate Investment Trust, Goldman Sachs, Government Consultancy, Ipad, Iphone, Iron Construction, Phillips Van Heusen, Precision Castparts, Real Estate Investment, Real Estate Investment Trust, Realty Trust, Starbucks Coffee, Stock Tips, Toy Maker, Wireless Communications Towers
Apple Inc seems to have started financial year 2011 the same way it ended financial year 2010: At a break necking speed!
Apple Quarter 1 2011 financial results
Apple Inc. says it sold more than 7 million iPads, about a million more than expected. It sold more than 16 million iPhones in the quarter ending December 2010.
Net income jumped to $6 billion, or $6.43 per share, up from $3.4 billion, or $3.67 per share. Revenue jumped 71 percent to $26.7 billion.
New Years Message from Steve Jobs
“We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”
written by Constantine Njeru
\\ tags: Apple 1, Break, Firing On All Cylinders, Ipads, Iphone, Iphone 4, Iphones, Necking, Net Income, Pipeline, Q1 Results, Share Revenue, Steve Jobs, Verizon
I was reading CNET and they had an article that analysed the amount of money Apple Inc makes on each Iphone. The analysis was by T. Michael Walkley of investment firm Canaccord Genuity.
Apple sees a gross margin of 50 percent and operating margins of around 30 percent on its iPhone. That’s within an industry where most handset makers struggle to turn a profit, or reach operating margins of even 10 percent.
As a result, he said, Apple took home 39 percent of the mobile phone industry’s overall profits by selling around 17 million iPhones during the first half of 2010.From CNET article
Apple Analyst Revenue forecast for 2011 to 2012
Walkley is forecasting sales of $63 billion for Apple in fiscal 2010, $82 billion in 2011, and $93 billion in 2012. That compares with $42 billion in 2009.
written by Constantine Njeru
\\ tags: Amount Of Money, Cnet, Gross Margin, Handset Makers, Investment Firm, Iphone, Iphones, Michael Apple, Mobile Phone Industry, Operating Margins, Profit Margins, Profits, Walkley
We know the Iphone exclusivity has kept AT&T in wireless business. With the Iphone exclusivity set to end anytime in 2011 investors have a reason to be concerned with AT&T stock.
If you believe the loss of Iphone exclusivity will have a negative impact on AT&T, with subscribers jumping over to Verizon or slowing subscriber growth then you can profit from the loss by shorting AT&T stock.Talk to your broker about the possibility of shorting AT&T stock.
What AT&T Thinks?
According to AT& T filing with SEC, “We do not expect any such terminations to have a material negative impact on our wireless segment income, consolidated operating margin or our cash from operations,” AT&T said
AT&T said more than 80% of its contract customers are on family or business plans that are less likely to see turnover.
What Business analyst are Saying,
Some surveys are telling us as many as 23% of AT&T users are likely to switch to Verizon when the Iphone goes to Verizon.
It’s hard to predict the impact of the loss of Iphone exlusivity, any position an investor takes on AT&T stock now will be speculative.
written by Constantine Njeru
\\ tags: Amp, Business Analyst, Business Plans, Contract Customers, Exclusivity, Investor, Investors, Iphone, Negative Impact, Operating Margin, Segment Income, Stock Analysis, Subscriber Growth, Subscribers, Surveys, Terminations, Turnover, Verizon, Wireless Business, Wireless Segment
We all know Apple shares are the hottest shares on wallstreet. In two years the stock as raced from $80 to the current $ 270s. The rally has been driven by the success of the Iphone and now the Ipad. So, what could go wrong? What could spoil the party of the decade?
According to an article on barron online. The writer raises some red flags on apple stock , he quotes analysis by Bernstein Research analyst Toni Sacconaghi.
If you are considering investing in apple stock, the following is a list of five concerns and potential pitfalls for Apple stock or Apple shares.
- Apple’s market cap is too large for it to outperform, and its image has migrated from underdog to Silicon Valley bully, which will increasingly pit competitors against it. He notes that both Microsoft and Cisco went on to under-perform the market when their shares hit the top of the Nasdaq market cap list. Another issue: Apple’s size means that it can no longer fly under the radar against its competitors, and there is increased risk that competitors will increasingly look to cooperate with each other and potentially undermine Apple.
- Increased regulatory scrutiny threatens to undermine Apple’s powerful iOS ecosystem. He notes that Apple has begun attract the attention of regulators, “with the most potentially damaging investigation being the FTC examining Apple’s requirement that developers only use Apple’s tools when writing apps for its iOS platform.” He writes that Apple’s relatively modest market share makes it tough to argue that Apple has dominant market power, but that “were regulators to define the market differently, they could hypothetically contest that Apple enjoys 70%-plus share of mobile device app downloads.”
- Sustained growth in iPhones will inevitably lead to margin pressure. “Given Apple’s relatively strong market share at existing partners, investors have expressed concern over the company’s ability maintain growth without lowering price to attract new customers, which would negatively affect gross margins,” he writes. Sacconaghi, notes, though, that the company increase its addressable market by 60% by adding the 13 largest global carriers that don’t already offer the phone.
- Near-term expectations for iPhone and iPad units are getting heady, risking disappointment. For iPads, he says, the question is whether the initial success is a temporary distortion due to out-sized and unsustainable enthusiasm among Apple fans. For the iPhone, he notes, a good portion of recent unit growth has been driven by expanded carrier distribution; he says a risks exists that if the company is slow to add more carriers, unit sales could fall short of estimates.
- Apple’s insistence on retaining cash points to a risk of the company squandering it on a flawed acquisition. The company has $41.7 billion in cash, about 17% of its market cap. It has the largest cash balance of any company in the S&P (ex financials). He contends that some investors think there is a risk the company one day make a value-destroying acquisition; he notes that the company’s acquisition history is limited.
To read mores see the original source on the article Barron Apple analysis
written by Constantine Njeru
\\ tags: Apple Stock, Barron, Bully, Existing Partners, Ios, Ipad, Iphone, Margin Pressure, Market Cap, Market Share, Mobile Device, Nasdaq Market, Potential Pitfalls, Red Flags, Regulatory Scrutiny, Research Analyst, S Market, Silicon Valley, Strong Market, Wallstreet
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