Lehman initiates coverage of Apple, sees Mac share doubling by 2013

Posted:
in General Discussion edited January 2014
Global financial services firm Lehman Brothers initiated coverage on Apple this week with an Overweight rating and $195 price target given the company's ongoing share gains in the PC market, potential for open-ended growth with new iPhones, and prospects for groundbreaking new products later this year and next.



"Despite the economic environment, we do not believe that Apple?s momentum has waned in Macs," analyst Ben Reitzes, who recently made his way from UBS, wrote in his first research note at Lehman. "In fact, Macs may have reached a tipping point with share on its way toward doubling over the next 3-5 years."



In addition, Reitzes believes Apple is the best positioned out of all major technology players to capitalize on a new industry theme that is driving the desire for content and information to be multi-purposed and displayed on many types of devices.



The analyst said the first step of this content expansion was the proliferation of the Internet to computers, while the second phase was arguably sparked by the iPod. He believes the third phase will come from sales of "smart" devices, which will include everything from smart phones to ultra-portable PC?s to sleeker notebooks.



"We believe that Apple is the company best positioned in our coverage universe to take advantage of the content expansion theme?by far," Reitzes told clients. "We believe the content expansion trend drives obvious upgrade paths within the Apple eco-system with regard to iPhones, iPods, Macs and eventually Apple TV.



Another major advantage on Apple's part is the one-two punch of its scalable Mac OS X software architecture and international retail chain, both of which combine to allow the company to more rapidly introduce products into new open-ended growth markets faster than its competitors.



"Not only does the content expansion help create a platform for revenue growth, but for margin expansion as well. Apple?s vertically integrated model has 'trapped' in the wallets of consumers better than any business model we have seen in years," Reitzes wrote. "For example, we estimate that Apple?s Mac units will grow about 33 percent this year and about 20 percent next vs. only about 10-12 percent growth for the global PC market."



Apple is also better positioned than most of its peers to avoid over-exposure in slowing international markets, the analyst told clients. While Dell leads the category with only 39 percent international exposure, Apple is a close second at approximately 40 percent but "is gaining so much share in the US PC market and has so much potential with the iPhone" that "it is still possible perhaps 'to look the other way.'"



Reitzes added that potential exists for Apple to further boost its share gains in the PC market should the company manage to put forth a viable and affordable competitor in the ultra-mobile/ultra-portable PC market that is currently dominated by over-priced machines that cost several thousand dollars and run only Microsoft software.



"We believe there is a market for a very small PC in the sub-$1,000 range optimized for media playing, internet surfing and even navigation," he wrote. "We had expected that Apple could get a product like this out this year but it seems that it could be next year."



Specifically, the analyst said his checks indicate that Intel?s Silverthorne chip for mobile Internet devices may note have been quite ready for the kind of battery life that the Mac maker wanted. However, the chip's successor, Moorestown, is due out in late 2009, which could finally usher Apple into the ultra-mobile space.



"We believe that this kind of device with high speed wireless connectivity could eventually account for over 10s of millions of units, adding further support to the notebook market," Reitzes wrote. "We believe Apple would be the big winner if this market were to develop."



In the meantime, the analyst sees Apple benefiting from the best portfolio of portable products on the market, including the new ultra-portable MacBook Air, which he believes the company may expand to "a whole family of MacBook Air laptops with different sizes" at or around its annual Worldwide Developers Conference (WWDC) in June.



He also expects the highly anticipated 3G iPhone to be announced in June -- though not necessarily at WWDC -- possibly in multiple configurations and more attractive prices with new features such as contact search, better enterprise support and video chat.



"We believe new iPhones could ship in July and would not be surprised to see Apple ink several new international partners in that time frame, including in China ," he added. "Down the road in [the second half of] calendar 2009, we believe Apple is likely to introduce a new category of ultra-portable devices maximized for media-playback and internet surfing."



For Apple's second fiscal quarter of 2008, results of which will be announced Wednesday (tomorrow), Reitzes is modeling for earnings of $1.05 per share on revenues of $6.95 billion, which he said may prove conservative given the potential for higher than expected gross margin.



Looking ahead, the Lehman analyst explained the biggest risks to Apple not achieving his $195 price target are the economic environment and consumer spending trends. "Key areas to watch are iPod inventory levels and execution risk in Apple?s ability to launch new iPhones successfully in the US and international markets," he said.
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Comments

  • Reply 1 of 22
    tundraboytundraboy Posts: 1,598member
    AAPL price doubling in 2013? Ah, music to my ears.
  • Reply 2 of 22
    johnqhjohnqh Posts: 242member
    Doubling in 5+ years is not that a big deal, only about 13% to 14%/year compounded.
  • Reply 3 of 22
    boogabooga Posts: 1,077member
    Quote:
    Originally Posted by johnqh View Post


    Doubling in 5+ years is not that a big deal, only about 13% to 14%/year compounded.



    "Only"? What kind of returns do you expect over the next 5 years of recession?
  • Reply 4 of 22
    stevetimstevetim Posts: 482member
    at 1:29 central here is apples website ... what is going on:



    Http/1.1 Service Unavailable
  • Reply 5 of 22
    walshbjwalshbj Posts: 864member
    What Booga said. Where is your money Johngh?
  • Reply 6 of 22
    zinfellazinfella Posts: 875member
    Well I wonder if Wu will sue?
  • Reply 7 of 22
    blah64blah64 Posts: 900member
    Quote:
    Originally Posted by tundraboy View Post


    AAPL price doubling in 2013? Ah, music to my ears.



    Quote:
    Originally Posted by johnqh View Post


    Doubling in 5+ years is not that a big deal, only about 13% to 14%/year compounded.



    Guys, not so fast! Go back and re-read his statements. I believe he's saying that market share will double by 2013, not that the stock price will double!



    And yes, that would be a big deal.
  • Reply 8 of 22
    nceencee Posts: 836member
    Quote:
    Originally Posted by stevetim View Post


    at 1:29 central here is apples website ... what is going on:



    Http/1.1 Service Unavailable



    www.apple.com



    or did you type in



    www.apples.com ? I ask, because it works fine for me?



    Skip
  • Reply 9 of 22
    jeffdmjeffdm Posts: 12,946member
    Quote:
    Originally Posted by Booga View Post


    "Only"? What kind of returns do you expect over the next 5 years of recession?



    Five years of recession? Wow, are you expecting Great Depression II?
  • Reply 10 of 22
    Apple Set to Significantly Beat Analysts Q2 2008 Earnings Estimates

    Monday, April 7, 2008

    http://bullcross.blogspot.com/2008/0...ntly-beat.html





    Many of the financial analysts covering Apple, Inc. (Nasdaq: AAPL) have become so increasingly bearish on both the technology sector and the economy as a whole that they have lost complete touch with any degree of financial reality. Analysts such as Kathryn Huberty of Morgan Stanley actually believe that Apple will only sell 1 million iPhones and 8.5 million iPods this quarter - way below consensus estimates and the current iPhone run rates.





    Other bearish analysts include BMO Capital analysts Keith Bachman who recently cut his price target on shares of Apple from $160 to $140 citing relative weakness in revenue upside for the year, Bernstein Research analyst Toni Sacconaghi who has been quite vocal of his belief that Apple will miss its 10 million calendar 2008 iPhone target by as much as 2.1 million units despite reassurance by Apple's own Steve Jobs (CEO), Tim Cook (COO) and Peter Oppenhiemer (CFO), and finally, Friedman Billings Ramsey chip analyst Craig Berger who believes Apple has significantly reduced its build orders for its Macintosh computers by 50% for the quarter despite evidence suggesting that Mac sales are up 60% in the month of February alone.





    Each of these deluded analysts have led to significant pullbacks in shares of Apple over the past few months, and in this article, I set to demonstrate just how wrong these overpaid analysts can be. While I do not work at Morgan Stanley, BMO Capital or Bank of America as a high flying analysts, I am going to publicly parade just how much better I am at this job than they are.





    According to analysts polled by Thomson Financial, the street is forecasting an earnings per share gain of $1.06 on $6.95 billion in revenue for the quarter (Fiscal Q2 2008). The highest estimate on the street is calling for $1.18 in EPS on $7.20 billion in revenue while the lowest estimate is for $0.94 in EPS on $6.65 billion in revenue. Furthermore, the street is generally looking for Mac sales to fall from 2.3 million units in Q1 to 1.9 million units in Q2 as a reflection of both a slowdown in consumer spending and normal seasonality. Finally, the street is generally looking for sales of 1.5 million iPhones and 9.7-10.5 million iPods for the quarter.





    Apple, Inc. Q2 2008 Earnings Estimates

    Despite the general bearish outlook exhibited on Wall Street, I am looking for Apple to significantly beat both its quarterly guidance and analyst expectations. I am forecasting earnings of $1.33 in EPS on $7.587 billion in revenue. I am looking for Apple to sell 2.350 million macs, 11.3 million iPods and 1.7 million iPhones. I am expecting gross margins to rise to 36%, operating expenses to be $1.160 billion, OI&E to be $200 million, COGS to be $4.856 billion and I am looking for $1.204 billion in net income after provisions for income taxes of $567 million (32%).





    In terms of Apple's operating segment information, I expect Apple to produce $3.643 billion in revenue from Mac sales (2.350 million macs at $1,550 ASP), $1.9436 billion in iPod sales (11.3 million iPods at $172 ASP), and a total of $2 billion derived from its other operating segments (this includes revenue Apple recognizes through its other music related products and services, iPhone and related products & services, peripherals & other hardware, and software, service and other sales).





    Pro Forma Financial Statement (in Millions except per share data)

    Revenue........................................... .................................................$ 7,587

    Cost of Goods Sold.............................................. .................................$4,856

    Gross Margin............................................ ..........................................$2,731 (36%)

    OpEx.............................................. .................................................. .$1,160

    Operating Income............................................ ....................................$1,571

    OI&E.............................................. .................................................. ...$200

    Net, Before Taxes............................................. ...................................$1,771

    Taxes............................................. .................................................. ..$567 (32%)

    Net Income............................................ .............................................$1,20 4

    EPS............................................... .................................................. ....$1.33





    Segment Information & Product Summary

    Macintosh Sales: $3.643 billion

    iPods: $1.9436 billion

    Other Music Related Products & Services: $600 million

    iPhone: $400 million

    Peripherals: $420 million

    Software: $580 million

    Total Revenue: $7.587 billion





    Supporting Arguments

    The basis of my forecast is rooted both in comparison trends between how Apple has guided in the past as compared to what it has actually earned over the past several quarters as well as the currently available data regarding each of Apple's operating segments. The analysis on the historical guidance trend, set out below, should be viewed as merely supportive of the operating segment conclusions and not as leading to the conclusions, laid out in this article, in and of itself. In other words, the guidance data trends merely provides further evidence in support of the conclusion that Apple will report sales of 2.35 million macs and 11.3 million iPods rather than being conclusory of those results.



    The historical data suggests that Apple is ultra-conservative in its guidance on some of the line items of its income statement and actually a little overly aggressive on others. I will first walk us through the various trends in Apple's guidance compared to its earnings on each line item, and will then discuss how the available data tends to support my earnings forecast.





    Revenue

    On average, over the past five quarters, Apple tends to beat its own revenue estimates by 8.50%. Considering the fact that Apple is known to be a very conservative company when it comes to offering guidance, it is likely the case that it will guide even more conservatively this quarter due to the fact that it has probably built into its guidance, the possibility of a slowdown in consumer spending. As economists continue to forecast recession for the first half of 2008, Apple's management has likely conservatively calculated this possibility into its guidance even though it might believe that a slowdown in consumer spending will have a marginal impact on its earnings. Based on the trends below, and the supporting arguments for the segment data, Apple should probably see close to $7.5-$7.6 billion in revenue for the quarter. The figures below compare Apple's revenue guidance with its actual results for the past five quarters (in millions):





    Q1 2008: $9,200 v. $9,608 ($408 or 4.4% beat)

    Q4 2007: $5,700 v. $6,217 ($517 or 9.0% beat)

    Q3 2007: $5,100 v. $5,410 ($310 0r 6.0% beat)

    Q2 2007: $4,850 v. $5,264 ($414 or 8.5% beat)

    Q1 2007: $6,200 v. $7,115 ($915 or 15% beat)





    Gross Margin

    Sandbagging. This is exactly where Apple's reputation of giving conservative guidance has been created. By giving ultra conservative gross margin guidance, Apple is able to continuously beat its EPS expectations by the staggering 47% margin we have seen over the past five quarters. The trends in Apple's conservative gross margin guidance coupled with reports that Apple is seeing better than expected component pricing for the quarter supports my forecasted 36% gross margin percentage stated above. Moreover, Apple offered $100 in store credits to nearly 1 million iPhone customers at the end its fiscal third quarter which undoubtedly put some pressure on overall gross margins during Q4 of 2007 and Q1 of 2008. According to Apple, the vast majority or nearly all of those store credits have been redeemed which suggests that gross margins should see a lift in the quarter. Also, as noted below, Apple tends to have its best quarter in terms of gross margin percentage in the middle of the year. Finally, and most importantly, Apple has guided for 32% gross margins for the quarter. The only other time Apple has guided for 32% in gross margins was in Q3 2007 where it reported a mind-numbing 36.88% in gross margins. As noted in the trends below, Apple tends to beat its own gross margin estimates by an average of 4% thus allowing them to regularly beat EPS expectations:





    Q1 2008: 31.0% v. 34.68% (368 basis point beat)

    Q4 2007: 29.5% v. 33.61% (411 basis point beat)

    Q3 2007: 32.0% v. 36.88% (488 basis point beat)

    Q2 2007: 29.5% v. 35.13% (563 basis point beat)

    Q1 2007: 28.3% v. 31.20% (290 basis point beat)





    First, notice how Apple tends to produce better margins in Q2 and Q3 over Q1 and Q4. This is due mainly to two factors. One, Apple tends to get better component pricing in the spring and summer quarters due to pricing pressures caused by seasonality in demand. Two, Apple gets a better product mix in the spring and summer i.e. a larger portion of its sales are high margin products such as Macs while the winter and fall quarters are met by large quantities of low margin iPods - Christmas gifts in the winter and new generation iPods in the fall. Secondly, notice Apple's guidance. This quarter Apple is guiding for 32% in gross margins - this matches the highest estimates it has given over the past 5 quarters. Finally, to reiterate, favorable component pricing, high sales of the MacBook Air, elimination of the iPhone store credit, and Apple's trend in guidance support a 36% gross margin percentage - probably conservatively so.





    Operating Expenses (OpEx)

    In terms of operating expenses, Apple is pretty consistent in guiding $40 million less than what it actually reports. In other words, Apple tends to be on the aggressive side when it provides guidance on OpEx. My forecast is consistent with this trend of under-performing when it comes to OpEx. Apple is guiding for $1.120 billion in operating expenses for its fiscal second quarter. Yet, based on the current trend, Apple should see closer to $1.140 billion in OpEx for the quarter. It remains to be seen whether Apple will break out of its trend of over-promising and under-delivering on OpEx. Until they do, I think it's prudent to be conservative on the estimates. Below is the trend of Apple missing on its operating expense guidance by $40 million (in millions).





    Q1 2008: $1,165 v. $1,206 ($41 million miss)

    Q4 2007: $990 v. $1,030 ($40 million miss)

    Q3 2007: $915 v. $954 ($39 million miss)

    Q2 2007: $800 v. $863 ($63 million miss)

    Q1 2007: $920 v. $898 ($22 million beat)





    OI&E and Taxes

    OI&E is relatively easy to predict as Apple consistently beats its OI&E guidance by $5-10 million each quarter. As Apple continues to pile up its cash ($18 billion), it will continue to collect larger amounts of interest on its war-chest. For the quarter, Apple is guiding for $190 million in OI&E which basically means it will report between $195-$200 million. I am looking for $200 million due to the recent pile up of cash in Q1. In terms of taxes, Apple consistently records a 32% tax rate with the occasional favorable quarter helping earnings to the upside. The data below marks the trend in Apple's consistent conservative guidance in OI&E to the tune of $5-10 million (in millions):





    Q1 2008: $190 v. $200 ($10 million beat)

    Q4 2007: $165 v. $170 ($5 million beat)

    Q3 2007: $150 v. $155 ($5 million beat)

    Q2 2007: $143 v. $148 ($5 million beat)

    Q1 2007: $120 v. $126 ($6 million beat)





    Earning Per Share (EPS)

    The historical trend in Apple's guidance versus actual earnings tends to suggest that Apple will earn over $1.30 in EPS this quarter. The trends in the data also tends to support my forecast of $1.33 in EPS. First, Apple tends to beat its own EPS guidance by an average of 47% over the past five quarters. Secondly, the trend in quarter over quarter seasonality between Q1 and Q2 of 2007 suggests that Apple should see a 23.7% decline in EPS between Q1 and Q2 of this year.





    As a matter of fact, Apple should see better seasonality this year considering the fact that Apple released the new MacBook Air, a 16 GB iPhone, and a 32 GB iPod Touch during Q2 of this year while Apple released no new products for sale in Q2 last year. Yet, assuming that Apple sees the same degree of seasonality, earnings should decline from $1.76 in Q1 to $1.34 in Q2 (a 23.8% decline). Alternatively, if Apple beats by the same margin it did in Q2 of last year (58%), it would earn $1.49. Yet, that number is too steep because it is not supported by the current predictions in the segment sales data. Still, the general trend of Apple smashing its conservative guidance tends to support the forecast of $1.33 for the quarter. The data below exhibits the trend of Apple's tendency to offer and significantly beat its conservative guidance:





    Q1 2008: $1.42 v. $1.76 (23.9% beat)

    Q4 2007: $0.65 v. $1.01 (55.4% beat)

    Q3 2007: $0.66 v. $0.92 (39.4% beat)

    Q2 2007: $0.55 v. $0.87 (58% beat)

    Q1 2007: $0.73 v. $1.14 (56% beat)





    iPod Estimates

    As noted above, I am looking for Apple to sell 11.3 million iPods at an average selling price of $172. The basis of my forecast is routed in tracking the accuracy of Piper Jaffray senior analyst Gene Munster's iPod predictions based on his analysis of NPD data. Gene Munster has been unusually accurate and has the uncanny ability of being able to predict the number of iPods Apple will sell in any given quarter. He is able to analyze NPD data better than most which results in his ability to predict iPod sales within the few thousands of sales.





    For example, in Q1 2008, when other analysts were expecting 25-26 million iPods, Munster forecasted 23.5 million iPods - just 5% above what Apple actually reported. In Q4 2007, Munster accurately forecasted that Apple would sell exactly 10.2 million iPods. Apple reported exactly 10.2 million iPods on the dot. For Q3 2007, Munster forecasted that Apple would see 9.5-10 million iPods on the quarter. Apple reported exactly 9.8 million iPods. Thus, Munster has obviously proven his ability to accurately predict iPod sales far better than Wall Street. The current consensus estimates for iPods falls between 10-10.5 million with several analysts predicting between 8.5-9.5 million. Munster's estimates are based on NPD data while many of these other estimates are based on pure conjecture and nonsense. Kathy Huberty just predicts sales of 8.5 million iPods without any underlying data, logic or reason in support of her conclusion. Munster basis his data on channel checks and NPD data. Who are you going to believe? Based on estimates from Gene Munster on iPod data, Apple would see sales of 11.3 million iPods at an ASP of $172 and record segment revenue of $1.9436 billion.





    Mac Estimates

    My earnings forecast is based on estimated sales of 2.350 million macs. The basis of this forecast is based on evidence suggests that Mac sales were up 60% year over year for the month February. Moreover, the Mac experiences significantly less seasonality than does the iPod. For example, in 2007, Apple experienced a mere 100,000 unit decline sequentially between Q1 and Q2 from 1.6 million units to 1.5 million units. Yet, as noted above, Apple released no new desktop or notebook computers in Q2 of 2007. In Q2 of 2008, Apple released not only the new MacBook Air, but it also released highly anticipated updates to the MacBook and MacBook Pro lines. This suggests that Apple should see much better seasonality this year than it did last year. This much is clear. Yet, even more importantly is the clear success of the MacBook Air. Since its release, the MacBook Air has held the number one spot, overtaking the MacBook, on Apple's on-line website in terms of best sellers. Last quarter, Apple sold 2.319 million Macs in a relatively slower than expected holiday shopping season. Given that Apple should see better seasonality this year than it did last year, and given the fact that the MacBook Air is selling phenomenally according to several analysts, I am forecasting sales of 2.350 million macs. This number might prove conservative if MacBook Airs end up selling way better than expected.





    Disclosure: I own long term 2009 and 2010 call options in Apple. The information contained in this blog is not to be taken as either an investment or trading recommendation, and serious traders or investors should consult with their own professional financial advisors before acting on any thoughts expressed in this publication.
  • Reply 11 of 22
    jeffdmjeffdm Posts: 12,946member
    Andy, it's usually not polite to quote an entire article when re-posting even if it's your writing. Please post a link and a short quote of the article and leave it to the reader to follow the link.
  • Reply 12 of 22
    johnqhjohnqh Posts: 242member
    Quote:
    Originally Posted by walshbj View Post


    What Booga said. Where is your money Johngh?



    Some in AAPL of course. Nice profit over the last year.



    My point is, this "double in five years" is pretty meaningless. Considering historically, S&P returns 11% per year, this prediction actually is saying AAPL is only marginally better than the whole market.



    And if AAPL only performed with the market, they will only be 20% off.



    Personally, I think AAPL will average about 20% annualized gain over the next five years, (meaning about triple by 2013), and during this period, it will go up and down and up and down like a Yoyo. Good oppotunities for people who can take some risk.
  • Reply 13 of 22
    Quote:
    Originally Posted by JeffDM View Post


    Andy, it's usually not polite to quote an entire article when re-posting even if it's your writing. Please post a link and a short quote of the article and leave it to the reader to follow the link.



    Thanks for the advice. I will heed it in the future.



    -Andy
  • Reply 14 of 22
    quinneyquinney Posts: 2,521member
    Quote:
    Originally Posted by andyzaky View Post


    Apple Set to Significantly Beat Analysts Q2 2008 Earnings Estimates

    Monday, April 7, 2008

    http://bullcross.blogspot.com/2008/0...ntly-beat.html



    If I understand correctly, you derived your predictions by combining Apple's historical

    record versus its guidance with the estimates of analysts with the best historical record

    of predicting details of Apple's performance. It seems to be a reasonable approach

    and I look forward to seeing how your predictions compare to the actual.
  • Reply 15 of 22
    Quote:
    Originally Posted by quinney View Post


    If I understand correctly, you derived your predictions by combining Apple's historical

    record versus its guidance with the estimates of analysts with the best historical record

    of predicting details of Apple's performance. It seems to be a reasonable approach

    and I look forward to seeing how your predictions compare to the actual.



    Yes. This is partly what I am doing. For iPod sales, I use Munster's estimates because he has been very very accurate in his predictions in the past. He knows how to read NPD data and knows how to make his predictions based on the readings.



    Yet, with Mac sales, I use a large host of data points to make my prediction. Some have to do with analysts estimates, some have to do with readings of Gartner & NPD data and some have to do with the historical trend. Here's an article where I provide all of the merits for why Apple will report 2,350,000 Macs when it reports tomorrow:



    Apple Could Post Sales of 2,350,000 Macs when it Reports on Wednesday

    Saturday, April 19, 2008



    A few weeks ago, I wrote an article summarizing my earnings expectations for Apple?s soon to arrive fiscal second quarter earning?s results due out after the bell on Wednesday, April 23. Since that time, I have received a numbers questions regarding my assumption that Apple will sell 2.35 million Macs for the quarter. A number that is well above analyst consensus estimates of 2 million units. First, I should say that my estimates are based on an extrapolation of data derived from various historical trends as well as the currently available publicly published data on the issue, and that actual results could vary significantly from my estimates...



    http://bullcross.blogspot.com/2008/0...0000-macs.html
  • Reply 16 of 22
    zinfellazinfella Posts: 875member
    IOW, it's a WAG.
  • Reply 17 of 22
    galleygalley Posts: 971member
    Quote:

    "We believe there is a market for a very small PC in the sub-$1,000 range optimized for media playing, internet surfing and even navigation," he wrote. "We had expected that Apple could get a product like this out this year but it seems that it could be next year."



    That device came out nearly a year ago; it's called the "iPhone".
  • Reply 18 of 22
    Quote:
    Originally Posted by zinfella View Post


    IOW, it's a WAG.



    Not really. The estimates are based on hard data. It's not just a wild guess.
  • Reply 19 of 22
    crebcreb Posts: 276member
    Some members here will do anything to try to manipulate the market in their favor. I can't blame them as that is how the game is played, but in many ways it is myopic at best. I surely wish Apple continues to do well, but there are so many unforeseen factors that no one can account for in this game.
  • Reply 20 of 22
    mdriftmeyermdriftmeyer Posts: 7,200member
    Quote:
    Originally Posted by Blah64 View Post


    Guys, not so fast! Go back and re-read his statements. I believe he's saying that market share will double by 2013, not that the stock price will double!



    And yes, that would be a big deal.



    Of course they said Market Share. I'm trying to imagine someone reading that, interpreting it as the Stock Price and even passing the GRE English comprehension portion of that exam.
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