Comments on: Should Apple be a $200 stock? http://blogs.reuters.com/bethany-mclean/2013/02/06/should-apple-be-a-200-stock/ Fri, 30 May 2014 19:54:25 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: IloveLinux http://blogs.reuters.com/bethany-mclean/2013/02/06/should-apple-be-a-200-stock/#comment-519 Wed, 13 Feb 2013 23:29:47 +0000 http://blogs.reuters.com/bethany-mclean/?p=157#comment-519 After that nightmare with the maps app. The stock began to fall and the smart money left. Tim Cook is a good man but he’s no visionary. Steve Jobs was. Don’t get me wrong its still a great company but there are better cheaper values around. Unless they have a ground breaking new cool device coming the better question might be what will push the stock up.

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By: rush2013 http://blogs.reuters.com/bethany-mclean/2013/02/06/should-apple-be-a-200-stock/#comment-511 Mon, 11 Feb 2013 19:13:10 +0000 http://blogs.reuters.com/bethany-mclean/?p=157#comment-511 Hi, spotted some typos; “iPhone sale srose” and “carriers have not choice but to pay up”.

Anyway, I don’t let that cloud my view of the professionalismworth of your piece. I assume you think, on balance, what you say is possible enough to write about it, and you are not just trying to up your page view stats.

You are basically saying that iPhone sales could reduce to such a degree that the companies earnings will be reduced by say about 60% of what they are today (hence a comparable drop in share price). That is, since iPhone sales are (as you say – have not checked) about 66% of profits for the company, iPhone sales should be treated as being practically zero, for company valuation purposes. You do not mention the other products that make up the balance of the companies profits (e.g. iPad) so I assume you do not expect (declining or not) sales of these to contribute to the decline to the $200 per share price, rather that is all they will have left.

The iPhone achieved over 50% market share in the last quarter in the US for the first time.
This does not square with the (predictive) model of the analyst you linked to under the word vicious. Being near the end of a Mathematics and Statistics degree, I was not impressed by this analysis; rubbish in rubbish out. Not sure you understand what your are linking to.

In a nutshell you think, on balance, that there is a reasonable enough possibility to state, in public, in print, that their iPhone business will disappear (soonvery soon), and that the company should be valued, today, accordingly.

On this basis I doubt the professionalismworth of your piece.

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By: xyz2055 http://blogs.reuters.com/bethany-mclean/2013/02/06/should-apple-be-a-200-stock/#comment-509 Sun, 10 Feb 2013 17:49:08 +0000 http://blogs.reuters.com/bethany-mclean/?p=157#comment-509 Apple has $145B of cash on hand. Name as many corporations in America as you can that are WORTH $145B (very very short list) let alone have that much cash on hand. Put that in perspective, that’s enough cash to buy every football team in the NFL..TWICE! The same wall streeters that are pushing Apple’s stock lower (PE of around 10) are pushing Facebook stock (PE 75) higher. Don’t listen to Wall Street. And short FB every time just before they post earnings. Almost guaranteed to make you money.

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By: stefanag http://blogs.reuters.com/bethany-mclean/2013/02/06/should-apple-be-a-200-stock/#comment-507 Sat, 09 Feb 2013 17:01:12 +0000 http://blogs.reuters.com/bethany-mclean/?p=157#comment-507 Macaloped.

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By: brotherkenny4 http://blogs.reuters.com/bethany-mclean/2013/02/06/should-apple-be-a-200-stock/#comment-505 Thu, 07 Feb 2013 21:06:19 +0000 http://blogs.reuters.com/bethany-mclean/?p=157#comment-505 The computer companies and phone companies are the masters of planned obsolescence. If the dummy consumer ever wises up, apple will be worth less than 200. However, that is not likely to happen since most people accept their mind/thought training very well. So, don’t worry, the consumer will never come out of their stupor and so money will stil be there to be had. Don’t worry either about the bad press on the worker treatment in China, American don’t care.

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By: QuietThinker http://blogs.reuters.com/bethany-mclean/2013/02/06/should-apple-be-a-200-stock/#comment-504 Thu, 07 Feb 2013 17:59:57 +0000 http://blogs.reuters.com/bethany-mclean/?p=157#comment-504 OK, we are now seeing a lot of piling on as many, many writers are writing doom and gloom articles about Apple because they somehow did not meet Wall Street expectations for one quarter. I appreciate that this article is really better than most. Perhaps Apple as a company is approaching middle age, but it is certainly not anywhere near being over the hill. Middle age for a company can be a long period of moderate growth and raking in profits. Apple’s long history and culture of innovation bode well for the company.

As far as the competition in smart phones, I will leave you with a slogan:

“Remember the Zune!”

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By: SanPa http://blogs.reuters.com/bethany-mclean/2013/02/06/should-apple-be-a-200-stock/#comment-503 Thu, 07 Feb 2013 16:06:45 +0000 http://blogs.reuters.com/bethany-mclean/?p=157#comment-503 If I had the need to waste $400 / yr on a data plan, I think I would be a buyer of the iPhone over anything Android. In large part, I would want uniform apps between the phone and my decision to adopt the iPad as my tablet … oh, and Android apps are simply too primitive.

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By: thinkb4its2late http://blogs.reuters.com/bethany-mclean/2013/02/06/should-apple-be-a-200-stock/#comment-502 Thu, 07 Feb 2013 14:45:28 +0000 http://blogs.reuters.com/bethany-mclean/?p=157#comment-502 Apple is the altar that Steve Jobs built for his worshipers, mostly out of their frustration with Windows. Some smart business people have hitched a ride on their adoration. Now that Jobs is gone it is doubtful that anyone else can keep all the candles burning.

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By: DanKarreman http://blogs.reuters.com/bethany-mclean/2013/02/06/should-apple-be-a-200-stock/#comment-501 Thu, 07 Feb 2013 11:23:19 +0000 http://blogs.reuters.com/bethany-mclean/?p=157#comment-501 1170 words, and you managed to mention the ipad only once, implying that it is a high margin millstone. Pretty nice millstone to have, considering that it disrupts pcs, and Apple doesn’t have to please carriers to sell. Ever wondered why Apple doesn’t see serious competition in the tablet market?

The reason aapl is not so hot is because Apple focus on products, employees, customers, supply chain, regulators, and shareholders, in that order, and Wall Street nows it.

Now, write a 1200 word column on why Amazon is undervalued.

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By: zonaindie1 http://blogs.reuters.com/bethany-mclean/2013/02/06/should-apple-be-a-200-stock/#comment-500 Thu, 07 Feb 2013 06:19:49 +0000 http://blogs.reuters.com/bethany-mclean/?p=157#comment-500 I had to sign up just to comment on this article. It is difficult for me to find any article that will provide an opportunity for my jaw to drop at, not the inconceivability, but at the sheer lack of even the most basic functions of the stock market. First, regardless of what Apple has on the balance sheet today, at the end of this year they will have close to $200 Billion. By the end of 2014, and let’s face facts even if sales slow down, they are not going to just stop, they will have $250 Billion lying around, which indicates that this brilliant analysis indicates that Apple will be worth less than the cash they will have on hand. Oh and did I mention that EPS for 2013 even reduced is still on target for at least $45 per share. So that is right, cash on hand + EPS for 2013 this argument indicates that Apple could be worth less than what they have on hand plus what they will earn.

If I was Reuters I would be thoroughly embarrassed to allow this “analysis” on their pages. It is one thing to make a cogent argument about the difficulties that Apple may face in upcoming years, it is another thing to publish this embarrassing drivel. Did anyone mention to Ms. McLean that even though the “era of the Ipod” is long over, they still sold 12.7 million last quarter? You think the tens of millions of people in the Apple ecosystem are simply going to just walk away? Your argument is that people are simply and immediately going to stop buying all things Apple is worthy of a D paper in an Econ 101 class. Oh and not a single word, not a single word in the entire article about a little thing called the Ipad.

You can make the case about the uber bullish analysts marking the top for Apple, you can make the same case for the bottom when this type of article is published.

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