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Why following Apple stock is not for the faint of heart
The unveiling of the iPhone 5s and 5c precipitated a nearly 51-point drop in shares of Apple, falling from US$505 to $454 in less than a week's time. The recent decline in Apple's share price serves as a prime example of why keeping a close eye on Apple's stock performance is often an exercise in confusion. The impetus behind the large sell-off of Apple shares was the higher than expected price tag associated with the iPhone 5c. Investors have been clamoring for a cheaper iPhone for years, viewing it as the only means for Apple to attain meaningful market share. Never mind, of course, the fact that Apple continues to command the majority of all profits in the smartphone market. Perfectly summing up what is often the nonsensical nature behind the ebb and flow of Apple's stock price, John Martellaro of The Mac Observer writes: We know the drill. Investment analysts, VCs and some media sites get a simple-minded idea. Apple should sell cheap iPhones to stop the infestation of cheap Android phones in emerging markets. That will surely allow Apple to squeeze out the bad guys and dominate the market... This is exactly what happens every year. A collective consensus regarding the best course of action for Apple emerges amongst analysts and tech pundits. When Apple chooses to go in a different direction, shares of Apple begin to plummet. The fundamental problem is that the same people who are so quick to opine on what Apple should do are the same people who are so self-assured in their wise counsel that they rarely, if ever, take a second to consider all of the ramifications that would manifest if Apple actually heeded their advice. Martellaro drives this point home: Apple, on the other hand, has its own set of problems. It must maintain the quality of its brand, and it must allow any iPhone to be a gateway to its own services, iTunes, iCloud, iBooks and so on. So just exactly how would Apple build a cheaper phone that nevertheless supports all the services Apple offers and also maintains that special customer craving for something really cool? Cheaper speakers and audio subsystem would denigrate iTunes. Crappier display? That would only disappoint. Omit certain communication bands? Then it wouldn't work worldwide seamlessly. Cheapen the construction so that when a customer drops it from a meter height, it explodes into 20 pieces? Not good. Smaller battery? Not with LTE you don't. It's not far-fetched to assume that shares of Apple would have fallen even if Apple priced the iPhone 5c much more cheaply. Inevitably, the new narrative would have been concern over Apple's margins. As it stands now, Apple's P/E ratio is below that of Dell's, which in essence sums up why making sense of Apple's share price is not for the faint of heart.
How iPhone launches affect the price of Apple stock
With Apple's iPhone event about a day away, we can expect new iPhones to hit store shelves in just a few weeks. While a few rumors have pointed to a September 20 launch date, we'll have to wait until tomorrow to know for certain. Either way, an iPhone launch is steadily approaching. That being the case, Chris Whitmore of Deutsche Bank recently issued a research note to clients tracking the performance of Apple shares in the wake of each iPhone launch. Whitmore found that shares of Apple increased following each iPhone launch, save for two. The two exceptions were the iPhone 3G -- which hit the market as the US was on the brink of an economic crisis -- and the iPhone 5. Keep in mind that Apple's stock price is influenced by a large number of factors. Consequently, investors shouldn't take the above chart to mean that shares of Apple will undoubtedly increase over the next few months. Indeed, anyone who has tracked shares of Apple knows that the company's stock price is subject to wild fluctuations that often defy logical explanation.
Icahn reportedly invested over $1.5 billion in Apple, stake in company still less than 1%
While initial reports indicated that billionaire investor Carl Icahn invested US$1 billion in Apple stock, the Wall Street Journal is now reporting that Icahn may have put more than $1.5 billion into Apple. Recall that shares of Apple skyrocketed by over 20 points yesterday following word of Icahn's huge investment. In two separate tweets sent out yesterday, Icahn exclaimed that shares of Apple were extremely undervalued while also mentioning that he had a conversation with Apple CEO Tim Cook about the potential for a larger stock buyback. "This is a no-brainer to go buy stock in a company that can go borrow" at a low rate, Mr. Icahn said in an interview. "Buy the company here and even without earnings growth, we think it ought to be worth $625. In case you're unfamiliar with Icahn, he has a well-deserved reputation as a corporate agitator, or activist investor if you're inclined to be politically correct. Specifically, Icahn has a track record of investing heavily in companies and leveraging his large ownership position to demand the change that he wants. While some folks have expressed concern about Icahn investing heavily in Apple and getting all chummy with Cook, there's really nothing to worry about. The Wall Street Journal notes: Wielding influence at Apple won't be easy, or inexpensive, given a stock market value that currently stands at close to $450 billion. At that capitalization, Mr. Icahn's stake would be less than 1 percent. Meanwhile, shares of Apple are still thriving in the wake of Icahn's investment. In early trading today, shares of Apple are up nearly 10 points as the stock inches closer to $500. Just three weeks ago, Apple shares were trading at $418. Per usual, it's a wild ride for Apple investors.
ITC's ban of certain Samsung devices boosts Apple market cap
Propelled by a favorable ITC ruling last Friday, shares of Apple shot up by US$12.91 on Monday, finishing the trading day at $467.36. Indeed, shares of Apple on Monday closed at their second highest level since February of 2013. Though the success of the iPhone is routinely measured against Android as a whole, the reality is that Samsung's fleet of Android phones remain Apple's biggest competition. To that end, investors reacted favorably to an ITC ruling this past Friday which handed down an import ban against certain Samsung smartphones found to infringe upon Apple patents. AppleInsider reports: Last Monday, news of the veto announced over the previous weekend sent Apple's stock up $6.91 or 1.49 percent, enough to raise Apple's market capitalization by just over $6.9 billion, a figure as large as Apple's most recently reported quarterly net income. Yesterday, Apple's market cap shot up by $11.7 billion. As for the Samsung import ban, it will go into effect in 60 days, barring a rare presidential veto. Apple, you may recall, was recently the recipient of a presidential veto with respect to an import ban that would have affected older-generation iPhones and iPads. The odds that Samsung will be as lucky appear to be extremely slim given the types of patents involved in the case. Remember that Samsung has routinely wielded standard essential patents against Apple whereas Apple has asserted patents that they are under no obligation to license to Samsung.
Numerous Apple executives sell millions of dollars' worth of shares
Last Friday we reported on a new SEC filing from Apple which relayed that Apple's Board of Directors tweaked Tim Cook's compensation package by adding a performance metric to his stock options. In addition, there were a number of other SEC filings from Apple which disclosed that a number of top executives sold millions of dollars' worth of Apple shares that had recently vested. Here's the breakdown: Apple CEO Tim Cook sold 41,391 shares for $17,115,178.50 Jeffrey Williams sold 38,181 shares for $15,787,843.50 Bob Mansfield sold 14,465 shares for $5,981,277.50 CFO Peter Oppenheimer sold 37,828 shares for $15,641,878 Phil Schiller sold 37,878 shares for $16,287,540 Bruce Sewell sold 37,828 shares for $15,641,878 Apple investors, however, shouldn't be worried that Apple's executive team is losing faith in the company. Keep in mind that the shares above were originally part of an allotment granted back in November 2011 with two vesting dates. The first one was on June 21, 2013 and the second is set for March 21, 2016. In other words, it's business as usual.
Apple's $17 billion bond deal allows it to avoid $9.2 billion tax hit
Yesterday I reported on the clever economics behind Apple's US$17 billion bond deal, specifically pointing out that the interest Apple will owe on each share it repurchases will be less than the dividend it would have otherwise been responsible for. Going a bit further, Businessweek did some calculations surrounding Apple's $17 billion bond deal and deduced that the company is avoiding a $9.2 billion tax hit by borrowing the money as opposed to using its own cash pile. Specifically, if Apple wanted to raise $17 billion by using its foreign stash of cash, it would have had to repatriate upwards of $26.15 billion. With a 35 percent corporate tax rate, Apple would have owed about $9.15 billion in taxes to Uncle Sam. Instead, Businessweek notes that Apple's annual interest payments on its issued bonds will only come out to about $308 million. And again, those payments are tax deductible. All in all, Apple's structured bond deal appears to be the result of some extremely shrewd financial planning.
The clever economics behind Apple's $17 billion bond offering
Apple on Tuesday raised $17 billion via a bond offering as part of its recently announced capital program which aims to return $100 billion to shareholders by the end of 2015. Apple's capital return program is comprised of two components: an increased quarterly dividend of $3.05 a share and a $55 billion stock repurchasing program. To help finance its new plan, Apple decided to issue debt, prompting many to wonder why the company didn't dip into its $145 million cash hoard. The answer is that $100 billion of Apple's cash lies overseas. Consequently, Apple would be subject to unfavorable income tax rates if it brought that cash back to the U.S. So instead, Apple chose to borrow money at extremely low rates to help fund its capital return program. The appeal is that the interest Apple will owe on its issued debt will be markedly lower than the income tax it'd be charged if it repatriated its foreign stockpile of cash. That certainly makes economic sense, but there's even more cleverness behind Apple's stock repurchasing plan and dividend increase than most people realize. Apple this week issued bonds with maturities of 3, 7, 10, and 30 years. While the rates on each type of note vary depending on the duration, the weighted average of Apple's interest rates comes out to about 1.85%, which if you do the math, amounts to approximately $314 million in interest payments. As Evan Niu of The Motley Fool points out, there are some interesting cost savings going on behind the scenes that may not be readily apparent at first glance. Here's a quick breakdown: Apple currently is trading in the $447 range. Using the 1.85% interest rate from above, we see Apple will be paying back about $8.26 in interest for each $447 share that it repurchases. At the same time, each share that Apple repurchases will no longer be a share it has to pay a third-party dividend on. Given Apple's new quarterly dividend of $3.05, each repurchased share of Apple will free up $12.20 (4 x $3.05) that Apple would otherwise be paying as an annual dividend. "It's like Apple is paying $8 to save $12," Niu writes. What's more, the $8/share Apple will repay as interest is completely tax deductible. In contrast, the $12.20 in annual dividend payments per share is not tax deductible. The Financial Times adds: Gerald Granovsky, an analyst at Moody's, said: "If you assume the statutory 35 per cent corporate tax rate, based on the data available and on a back of the envelope calculation, to generate in the US the equivalent of $17bn the company would need to repatriate $26bn. 'That is less attractive than paying the $300m in interest attached to this bond sale,' In essence, Apple is exchanging non-deductible and more expensive dividend payments for tax deductible interest payments while purchasing back shares at relatively low price-points. All the while, its billions of dollars in overseas cash remains untouched and untaxed.
Russia's richest man takes a $100 million interest in Apple
Over the past few weeks, shares of Apple have been trading at 52-week lows. Earlier this month, shares of Apple dipped below US$400 a share for the first time since 2011. Shockingly, Apple had a P/E ratio lower than Dell's for a few days last week. Over the past week, however, shares of Apple have rebounded nicely and are now trading in the $436 range. As for what's fueling the latest Apple rally, it's likely that the company's recently announced capital return program is being viewed rather favorably by investors. One man who's particularly bullish on Apple future prospects is Alisher Usmanov, Russia's wealthiest man. Usmanov has an estimated net worth of $19 billion and recently invested $100 million in Apple, believing strongly that the stock will rebound. "I believe in the future of this company even after Steve Jobs," Usmanov explained in an interview with Bloomberg. When the company lost $100 billion of its market value, it was a good time to buy its shares, as the capitalization should rebound." Usmanov highlighted that Apple's intention to purchase back $60 billion of its own shares and increase its quarterly dividend make Apple a "very promising investment." Previously, Usmanov enjoyed a 10-fold return on his 2009 investment in Facebook. Lastly, and for any soccer fans out there, Usmanov happens to hold a large stake in London's Arsenal Football Club.
Apple already taking steps to prepare for its upcoming debt sale
Apple last week announced that it would embark on a massive stock repurchasing plan whereby it will purchase US$60 billion worth of its own shares by the end of 2015. In a press release on the matter, Apple called it the "largest single share repurchase authorization in history." What's more, the company also announced a 15 percent increase to its quarterly dividend, upping the payout from $2.65 to $3.05 per share. Taken together, Apple's capital return program is designed to return a total of $100 billion to shareholders. That's a lot of dough, but with upwards of $145 billion in the bank, there's no denying that Apple has the cash to make that happen. There's just one slight problem -- the bulk of Apple's cash is overseas and would be subject to a corporate income tax rate of 35 percent should Apple try and bring it back to the US. That being the case, Apple has opted to keep its cash overseas and fund the bulk of its capital return program via the issuance of debt. Now, just one week after making its initial announcement, Reuters is reporting that Apple has already begun taking steps to secure funding for its capital return program, including contacting both Goldman Sachs and Deutsche Bank and filing the requisite SEC paperwork. The only major tech company without a penny of debt on its books, Apple stunned the markets last week by announcing it could sell debt for the first time to help fund a $100 billion capital return program for shareholders. Any bond offer from the makers of the iconic iPhone and iPad would be highly sought after by investors, and it is believed the company could raise funds at a cheaper rate than even Triple A-rated Microsoft. That Apple would turn to the debt market to help fund its $100 billion expenditure isn't all that surprising. Apple has long lobbied for a tax holiday wherein it would be able to repatriate its cash hoard to the United States at a much lower tax rate. Besides, if Apple can issue debt on favorable terms, why not take advantage of it? Fortune adds: Apple's decision to tap the debt market comes at a time when borrowing is cheap. The Federal Reserve is holding interest rates near record lows and the average yield on investment grade US corporate debt is around 2.6 percent, according to RBS credit strategist Edward Marrinan, who said companies with a AA-rating like Apple's can borrow at a rate of less than 2 percent. As for Apple's increased dividend, the company will next issue a dividend payout on May 16.
Apple increases dividend by 15%, poised to embark on large stock-repurchasing plan
In conjunction with its earnings report for Q2 2013, Apple issued a press release announcing some major plans for its ever-growing stockpile of cash. In March 2012, Apple announced that the company would be instituting a $2.65/share dividend on a quarterly basis with Apple's first dividend payment to investors going out in August of last year. Now, about one year later, Apple announced its plan to increase its quarterly dividend to $3.05 per share. The next dividend payout to investors is scheduled for May 16, 2013. What's more, Apple also announced a massive increase to its stock-repurchasing plan. As part of this program, the Board has increased its share repurchase authorization to $60 billion from the $10 billion level announced last year. This is the largest single share repurchase authorization in history and is expected to be executed by the end of calendar 2015. Apple also expects to utilize about $1 billion annually to net-share-settle vesting restricted stock units. When Apple first announced its dividend and stock repurchasing plan last year, it revealed that both initiatives would eat up about $45 billion from Apple's cash reserves. Under Apple's more aggressive dividend and stock repurchasing plan, Apple notes that the company will now be using $100 billion of its cash reserves to return money to shareholders and repurchase outstanding shares. The company expects to utilize a total of $100 billion of cash under the expanded program by the end of calendar 2015. This represents a $55 billion increase to the program announced last year and translates to an average rate of $30 billion per year from the time of the first dividend payment in August 2012 through December 2015. For a company that was long content to sit on its growing cash hoard under the helm of Steve Jobs, today's announcement represents a monumental shift in Apple's use of cash. Regarding Apple's new use of cash, Apple CEO Tim Cook explained in a press release, "We are very fortunate to be in a position to more than double the size of the capital return program we announced last year. We believe so strongly that repurchasing our shares represents an attractive use of our capital that we have dedicated the vast majority of the increase in our capital return program to share repurchases." Thus far, Wall Street seems to be pleased both with Apple's earnings report and news of its expanded cash program. In after hours trading, shares of Apple are up nearly 5 percent, trading up nearly 20 points.
AAPL drops below $400 briefly; Cirrus Logic inventory numbers blamed
Apple Inc. (AAPL) stock fell to its lowest price since December 2011 today following a report from Cirrus Logic, a producer of chips used in the iPhone and iPad, that it was dealing with an inventory surplus. Cirrus Logic said one of its customers is moving to a newer component causing the slowdown, The Associated Press reports. It did not specify which customer made the switch, but Apple is reportedly its biggest customer. Investors took this as a sign that iPhone and iPad sales might have fallen short of expectations. Apple's prices fell about 6 percent, and the market closed with Apple stock at $402.80, down $23.44. At one point, the stock had slipped below $400. Apple stocks have fluctuated in the past few months, hitting an all-time record of above $700 in September due to pent-up demand for the iPhone 5. It is worth noting T-Mobile just began selling the iPhone 5 on April 12, to reportedly strong sales. Apple is scheduled to announce Q2 2013 earnings on Tuesday.
Trader pleads guilty to making unauthorized purchase of nearly $1 billion in Apple shares
The FBI reports that a trader who last year made an unauthorized purchase of nearly US$1 billion worth of Apple stock has pled guilty to wire fraud, securities fraud and conspiracy. On October 25, 2012 -- the same day Apple posted its Q3 2012 earnings -- David Miller of Rochdale Securities made a number of unauthorized purchases of Apple shares which ultimately led to the demise of the financial services firm he worked for. The aim of Miller's action was to make a lot of money very quickly by purchasing large quantities of Apple shares and selling them in a post-earnings surge. So starting at around 9:30 AM on October 25, a co-conspirator of Miller's put in an order for 125,000 shares of Apple stock. Throughout the course of the day, Miller continued to snatch up shares of Apple in quantities of 125,000. By the end of the trading day, Miller had acquired approximately 1,623,375 shares of Apple. Apple at the time was trading in the low $600 range and Miller's unauthorized shares were worth close to $1 billion. Later that day, Apple posted solid earnings, but as is typically the case after an earnings report, shares of Apple went down over the next few days. When the higher ups at Rochdale Securities confronted Miller about his large stock purchase, he claimed he had accidentally entered in a legitimate customer order for 125,000 shares of Apple multiple times. Rochdale Securities was subsequently forced to sell its position in Apple and endured a loss of nearly $5.3 million. Unfortunately, the firm, based in Hartford, Conn., was unable to recover from the loss. Just one month later, Rochdale Securities let go of its staff and ceased to function as an operating entity. It's worth noting that Miller's unauthorized purchase of Apple shares wasn't the only crime he engaged in. The FBI adds: While he was executing the scheme at Rochdale, Miller also defrauded another broker-dealer into taking on a significant short position in Apple stock. Through a series of misrepresentations made over the course of several weeks, Miller convinced the broker-dealer to sell 500,000 shares of Apple stock, falsely claiming that he was trading for the account of a company, which he had no relationship with and for which he was not authorized to trade. Miller engaged in this part of the scheme to hedge against the large purchase of Apple stock he was executing at Rochdale. Miller will be sentenced on July 8, 2013. The renegade stock trader faces up to 25 years in prison but may only serve five to eight years under terms of a plea agreement. In the meantime, he is free on $300,000 bond.
AAPL takes a hit despite iPhone 4S news (Updated)
Apple's share price has dropped dramatically after today's announcement of the iPhone 4S. At 3:07 PM EDT, AAPL was down over $16 per share to $358.51, although it could recover before today's market close. While this doesn't look good for Wall Street's enthusiasm for the new device, the stock drop is actually quite normal for the day of an Apple announcement. We've seen similar results after announcements of most new Apple devices, with the stock usually recovering or rising the next day. The stock price for new US iPhone carrier Sprint doesn't seem to be reacting much in one way or another to the announcement. At press time, the company's stock was selling at $2.68 a share, down $0.06 for the day. Shares in Verizon and AT&T were relatively steady as well. Of course, most of the responsibility for the lackluster stock price for Apple could be tied to the world economic news today. Fed Chairman Ben Bernanke's comment that "The economic recovery is close to faltering" has resulted in an overall decline on the markets, with the Dow-Jones Industrial Average down 162, S&P 500 down 12, and NASDAQ down 17 at press time. Update: AAPL closed today at $372.50, only down $2.10 (-0.56 percent). The DJIA, NASDAQ, and S&P 500 all finished the day up. It's amazing what can happen with the market in only an hour... Turns out that the "hit" was more of a "hiccup."
AAPL could hit $410 according to R.W. Baird analyst
If only this blogger had held onto that Apple stock that was bought for about $8 while dabbling in the market in the late-1990s. Instead the profits from selling it at $27 a share were put into such wise investments as Webvan. The only good thing about my dot com bubble investing period is that only a small chunk of money was set aside to play with and no more was added. On the other hand if I had just had more patience and stayed in Apple, I'd have a very nice chunk of change with it now trading at over $317 per share and likely to go much higher. According to a recent Associated Press article, William V. Power, an analyst with R.W. Baird is projecting that AAPL shares will be trading at as much as $410 before long and he is not alone. Numerous analysts have projected $400+ for Apple and the average of 38 different projections is $370.50. The key to that continued growth according to Power is the iPhone which currently only commands about three percent of global mobile phone sales. As smartphones grab an ever larger stake of the handset market, Apple and its prime competitors, Android and Windows Phone 7 are all likely to see big gains in the next few years and that will certainly help Apple's bottom line and stock price.
It's a Merry Christmas for AAPL shareholders, stock at all-time high
On December 14th, I posted an opinion piece sharing my thoughts that AAPL stock would hit $300 a share in a year (for which I received quite a lot of critical feedback). Two days later, on December 16th, Morgan Stanley's Katy Huberty issued a report stating she believes there is a 25% chance that AAPL will be between $325 and $435 in the next twelve months (she also believes it could fall to $150 if Google's Android takes off and Apple drops the ball). Huberty based her bullish outlook on the scenario that iPhone sales are on pace to capture 10-15% of the handset market by 2012 – and this doesn't even include soaring Mac sales or the impending iSlate. Well, the stock isn't at $325 yet, but on December 24th, AAPL did close at an all-time high of $209.04. Not bad considering on December 8th, the stock was down almost 8% on its previous high of $208 on November 16th. Christmas Eve's 3.4% one-day gain was driven primarily by the news that Apple has booked the Yerba Buena Center for the Arts for an event on January 26th. So, where does the stock go from here? Traditionally, there is an early-January slide for AAPL that coincides with the "buy on rumor, sell on news" MacWorld Expo event, but since MacWorld is going to be Apple-free from now on, who knows if that will happen this year. And even if the early January slide hits AAPL, the company has so much going for it besides the rumored iSlate, I'm beginning to think my $300 target is rather conservative. But that's the future. For now the $209 share price is a nice Christmas gift. Disclaimer: This author owns shares in AAPL. Opinions in this post are those of the author only and should not be considered as investment advice.
Apple shares slide following keynote
Here's a shocker -- Apple shares slid 0.7 percent (as of this writing) after Phil Schiller concluded the company's last official keyonte address at Macworld Expo. Robert Francello, head of equity trading for Apex Capital hedge fund in San Francisco, blamed "...no true blockbusters" for the market's reaction.With that, we have a large part of why Apple has abandoned the show. Ten or twelve years ago, Apple needed such a high-profile event to get its products noticed by as many people as possible. Additionally, they'd pack as much into those precious 90 minutes as they could, while they had everyone's attention.Today, that's not the case. Phil Schiller noted that 3.4 million customers visit their retail stores per week, worldwide. The "lesser" press events, like the annual September iPod announcement, attract all the attention Apple needs. These are much less expensive to produce and allow Apple to release products when they're ready, not when the calendar reads "January." Therefore, there's no cache of goodies waiting for the Moscone Center, which always disappoints Wall Street and adversely affects Apple's stock price.Sure, it's sad to see Apple go, but the "why" is clear.[Via MacDailyNews]
Apple announces date for Q4 conference call
Earlier this week, Apple announced that their fourth quarter financial conference call will take place on October 21st. The live audio stream will begin at 2PM Pacific time.We'll be liveblogging the call, so check back on the 21st for up-to-the-second information and analysis. Apple's stock took a significant dive last month, as did the rest of the market. Still, Apple's overall market share continues to be strong, and retail stores continue to open across the globe. It will be an interesting report.[Via MacNN]
Silly Sunday Survey: Who would replace Steve Jobs?
Douglas McIntyre over at Blogging Stocks posed an interesting question the other day, in light of the current issues surrounding Apple's option back-dating. If it were discovered that Steve Jobs played a key role in the option mishap and he was forced to resign as CEO, who would/should be his replacement?Here are the candidates McIntyre suggests as possibilities: Phil Schiller -- He is the long-time head of global product marketing. He has been with the company since 1997 and has been critical in most product launches. (Update: Bob points out in the comments below that Phil started at Apple in 1987, then left for a few years during Spindler and Amelio's tenure, then returned in 1997) Tim Cook -- The company's COO. He had a long career at IBM. He also heads the Mac division. Tony Fadell -- One of the fathers of the iPod; he has an engineering background. He is a former executive at Philips Electronics. William Campbell -- One of Apple's leading directors. He has run a large public software company, Intuit. Jerome York -- Although he is over 70, York has experience operating troubled companies. He was CFO of IBM and a member of that company's board. He is also on the GM board. (Update: Alex alerts us in the comments that as of last week York is no longer on the GM Board) Jim Allchin -- Head of platforms and services at Microsoft. He intends to retire with the the launch of Vista. Allchin has an engineering background. Sue Decker -- The highly regarded CFO of Yahoo! She has a Wall St. background and now runs several key divisions at Yahoo! John Thompson -- The highly-regarded CEO of Symantec, has a background in running a large software company and is well liked on Wall Street. Perhaps some of you would like to weigh in?
Apple beats Q2 estimates
Yesterday was Apple's Q2 financial conference call, and it's safe to say things went well. Apple generated $410 million (47 cents per share) in the 2nd quarter of 2006, up from $290 million (34 cents a share) as this time last year. Wall Street's projection was 43 cents per share. iPod sales continued to do well, and Mac sales rose 4%. I'm really interested to see the same numbers a year from now, once the full line of Macs are Intel-based and Leopard has been released.
WWE champ JBL: Apple stock a buy
Here's an article we didn't expect to find this morning. WWE superstar JBL writes about the stock market for The Street. No, seriously. In last Saturday's article, he had some nice things to say about Apple (and AAPL). Having just read iCon, the unauthorized bio of Steve Jobs, JBL stated his admiration for Apple's leader, and said this about Apple stock:"Apple is a dream company. No debt, and over $10 per share in cash. Add to that the fact it is still a growth story and you have a stock that is cheap."If JBL tells you to buy a stock, buy it. You don't want a steel chair to the back of the head, do you?
