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UBS: Buy into Apple ahead of Macworld

post #1 of 28
Thread Starter 
Analysts for UBS Investment Research are thrilled with what they're seeing from Apple Computer in recent quarters and are urging investors to buy shares of the company ahead of January's insanity-induced Macworld trade show in San Francisco, Calif.

"We believe that Apple has many exciting new products in the pipeline with many set to hit in the first half of calendar year 2007," analyst Ben Reitzes told clients in a research note following the company's impressive fourth quarter earnings report on Wednesday.

The analyst said he continues to expect new video iPods with bigger screens as well as additional content deals for films on iTunes in the coming months, but does not see a new video iPod until early 2007 after Macworld.

"Apples iTV digital media hub previewed at its recent 'Showtime' event in mid-September is expected to hit shelves by calendar 1Q07, and we could learn about more exciting features for this product at Macworld in January (and more media hub products and services), " he wrote.

"We remain confident Apple is working hard on innovating in the digital home and seems to still be a step ahead of the competition."

Reitzes on Thursday raised his fiscal year 2007 estimate for the company to $23.2 billion in revenue and $2.75 earnings-per-share (EPS) from $23.1 billion and $2.70, to reflect higher Mac and iPod unit sales.

"While there were concerns over potential for weak iPod sales throughout the quarter, we were extremely surprised at iPod strength during fiscal [fourth quarter]," the analyst wrote. "Also, Mac unit sales of 1.61 million (up 30 percent year-over-year and up 21 percent sequentially) beat our optimistic estimates of 1.48 million units."

For fiscal 2008, Reitzes is now modeling Apple to earn $3.15 per share on revenues of $26.7 billion, up from $3.10 and $26.4 billion.

"We are reiterating our Buy 2 rating ahead of the January 8th Macworld Keynote address by Steve Jobs," he told clients.
post #2 of 28
iPOD sales will be slow with the rumors of the new Video iPOD. I also believe sales for MacBooks have slowed down because of the potential release of newer MacBook(Pro)s.

Once these products are announced, there will be a surge and the demand will be hard to meet.

Buy your stocks now. I did, but I am hoping the stock goes up splits and then I'll buy some more.
post #3 of 28
Quote:
Originally Posted by AppleInsider

Analysts for UBS Investment Research are thrilled with what they're seeing from Apple Computer in recent quarters and are urging investors to buy shares of the company ahead of January's insanity-induced Macworld trade show in San Francisco, Calif.

"We believe that Apple has many exciting new products in the pipeline with many set to hit in the first half of calendar year 2007," analyst Ben Reitzes told clients in a research note following the company's impressive fourth quarter earnings report on Wednesday.

The analyst said he continues to expect new video iPods with bigger screens as well as additional content deals for films on iTunes in the coming months, but does not see a new video iPod until early 2007 after Macworld.

"Appleā€™s iTV digital media hub previewed at its recent 'Showtime' event in mid-September is expected to hit shelves by calendar 1Q07, and we could learn about more exciting features for this product at Macworld in January (and more media hub products and services), " he wrote.

"We remain confident Apple is working hard on innovating in the digital home and seems to still be a step ahead of the competition."

Reitzes on Thursday raised his fiscal year 2007 estimate for the company to $23.2 billion in revenue and $2.75 earnings-per-share (EPS) from $23.1 billion and $2.70, to reflect higher Mac and iPod unit sales.

"While there were concerns over potential for weak iPod sales throughout the quarter, we were extremely surprised at iPod strength during fiscal [fourth quarter]," the analyst wrote. "Also, Mac unit sales of 1.61 million (up 30 percent year-over-year and up 21 percent sequentially) beat our optimistic estimates of 1.48 million units."

For fiscal 2008, Reitzes is now modeling Apple to earn $3.15 per share on revenues of $26.7 billion, up from $3.10 and $26.4 billion.

"We are reiterating our Buy 2 rating ahead of the January 8th Macworld Keynote address by Steve Jobs," he told clients.

they're seeing not their seeing
post #4 of 28
I sold today at 74.88, as my Apple stock was in an IRA and for tax purposes it does not matter how many times I buy and sell it. Apple is bound to fall down again before it goes up in January.
45 2a3 300b 211 845 833
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post #5 of 28
Quote:
Originally Posted by e1618978

I sold today at 74.88, as my Apple stock was in an IRA and for tax purposes it does not matter how many times I buy and sell it. Apple is bound to fall down again before it goes up in January.

I didn't sold, I'll hold my 200 shares till january for tax purposes here in Spain, plus I definitively think they'll fluctuate but not go down. That's what I think
post #6 of 28
Quote:
Originally Posted by e1618978

I sold today at 74.88, as my Apple stock was in an IRA and for tax purposes it does not matter how many times I buy and sell it. Apple is bound to fall down again before it goes up in January.

-
post #7 of 28
Quote:
Originally Posted by Ben Reitzes

"We are reiterating our Buy 2 rating ahead of the January 8th Macworld Keynote address by Steve Jobs."

I'm going to buy more than 2 shares!
post #8 of 28
There's bound to be some profit taking tomorrow after today's price hike to knock some stuffing out of it.
post #9 of 28
edit: Removed--redundant
Mac user since before you were born.
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Mac user since before you were born.
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post #10 of 28
Quote:
Originally Posted by psionic001

-

Well, if you really are psionic, maybe you can predict the market, but we will see how good your psionics are between now and Christmas.
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post #11 of 28
post #12 of 28
We might see a pull back, but overall I think the stock will be over 100 come April 2007
post #13 of 28
Quote:
Originally Posted by e1618978

I sold today at 74.88, as my Apple stock was in an IRA and for tax purposes it does not matter how many times I buy and sell it. Apple is bound to fall down again before it goes up in January.

I'm holding for now. Some of the shares are in both my wife's and my IRA's, but thr majority is not. It is subject to Capital Gains.

I feel as though it will go up farther, even if it does drop back some.
post #14 of 28
Quote:
Originally Posted by jasonfj

There's bound to be some profit taking tomorrow after today's price hike to knock some stuffing out of it.

It should have occurred at the end of day today, but it didn't.
post #15 of 28
Isn't it pretty obvious that Apple will release new products at MacWorld? I mean, they do every year. And everyone will expect this, so the share price will go up. I don't need an analyst to tell me that...
post #16 of 28
Quote:
Originally Posted by melgross

It should have occurred at the end of day today, but it didn't.

That's exactly what I was looking for.. I'll admit that on that one frazzled me a bit.

However having gambled big time on these results no complaints.
post #17 of 28
Quote:
Originally Posted by Shookster

Isn't it pretty obvious that Apple will release new products at MacWorld? I mean, they do every year. And everyone will expect this, so the share price will go up. I don't need an analyst to tell me that...

Last year, the price slide began with Macworld, and and got tied to a rock in water with the quarterly report.

This year, hopefully, they will have something more behind the curtain. The Intel Mac's didn't do the share price any good then.
post #18 of 28
APPLE IS DOOMED!!!!!!


....sorry, couldn't resist

post #19 of 28
Quote:
Originally Posted by melgross

It should have occurred at the end of day today, but it didn't.

Short term stock price movements are completely random.
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post #20 of 28
Quote:
Originally Posted by e1618978

Short term stock price movements are completely random.

Sorry, but I don't agree, and yes, I'm quite familiar with efficient market hypothesis.
post #21 of 28
Quote:
Originally Posted by e1618978

Short term stock price movements are completely random.

No, they aren't. They seem to be to some, but there are reasons why they move.

Normally, after a rise as Apple has had today, the profit takers come in the last 20 minutes or so. Sometimes a bit earlier, sometimes a bit later.

If they think the opening will be at the same or higher level, they usually stay away.

The only real variable is from the day traders. They are all over the place. But their influence depends on where the trading has been taking place during the day. If institutional investors have been heavy in the market, they won't affect it much, otherwise they will.

They are usually the last in, and the first out, when a stock situation is as this one is now.
post #22 of 28
Quote:
Originally Posted by willgonz

iPOD sales will be slow with the rumors of the new Video iPOD. I also believe sales for MacBooks have slowed down because of the potential release of newer MacBook(Pro)s.

Once these products are announced, there will be a surge and the demand will be hard to meet.

Buy your stocks now. I did, but I am hoping the stock goes up splits and then I'll buy some more.

Just hope the supply/demand wont be like the xbox 360 shortage or the upcoming ps3 shortage.
post #23 of 28
And if you can't bear to sell your shares, always remember you can sell covered calls.

Pick a nice high price for the stock and the call, and if it kicks in, great! Making money in both places.

Apple was great for that strategy last summer, always managed to pick a trigger price for the call that was just below what it would be on expiration of the option. The trend has just started again with Apple hovering around $80 this Friday.

Can't wait to see what happens in the next few weeks to determine what price to go for November.
post #24 of 28
Quote:
Originally Posted by TednDi

APPLE IS DOOMED!!!!!!


....sorry, couldn't resist


Huh? I thought we were still BELEAGURED.

Best part of all this ('cept for selling your stock at a handsome profit, of course): The Apple-haters can't really say sheeite anymore... not without having it knocked back down their throats by the mountains of evidence to the contrary.

Its nice to be an Apple fan these days... as in us to the Winzealots: "Hey man, we toldja so." 8)

.
Cut-copy-paste, MMS, landscape keyboard, video-recording, voice-calling, and more... FINALLY
To the 'We Didn't Need It' Crowd/Apple Apologista Squad : Wrong again, lol
Thanks for listening to your...
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Cut-copy-paste, MMS, landscape keyboard, video-recording, voice-calling, and more... FINALLY
To the 'We Didn't Need It' Crowd/Apple Apologista Squad : Wrong again, lol
Thanks for listening to your...
Reply
post #25 of 28
Sell at 80.
post #26 of 28
Sell at 100.
post #27 of 28
Quote:
Originally Posted by anantksundaram

Sell at 80.

Well it looks like many people agree with you on 80, considering the bouncing around at $79.9x on Friday.

Might see a break through early next week - or not.
post #28 of 28
Quote:
Originally Posted by OfficerDigby

Well it looks like many people agree with you on 80, considering the bouncing around at $79.9x on Friday.

Might see a break through early next week - or not.

I'm sticking to what I said earlier. I'm holding.
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