Apple Now 32% Below Price Target.
The gaping hole between Apple's price and its average price target is now the biggest of any stock in the S&P 100, and it's not even close.
** J.P. Morgan**
** I Know First system**
Time to BUY AAPL on dips is very near.
Samsung has passed Apple to become the world's top chip buyer, per Gartner: the firm estimates Samsung accounted for 8% of global chip purchases last year thanks to a 28.9% increase in consumption to $23.9B. Apple bought $21.4B worth of chips (7.2% share), and H-P $14B (4.7%). Samsung is trying to source more of those chips internally, as evidenced by last year's acquisitions (I, II). Some major Samsung mobile chip suppliers: SWKS, RFMD, MXIM, BRCM, QCOM.
China Mobile (CHL) says it sold over 60M TD-SCDMA 3G phones in 2012, and hopes to double that figure in 2013. Moreover, the world's biggest mobile carrier hopes 80% of those sales will involve smartphones, which are more likely to use ARPU-lifting data subscriptions. TD-SCDMA baseband chip vendors Spreadtrum (SPRD), Marvell (MRVL), and MediaTek must be pleased to hear those remarks. So might Qualcomm (QCOM), which recently announced baseband chips for CHL's network.
" Apple Now 32% Below Price Target. "
It's no mystery either. they're being threatened on every front by new-gen competition. The market's forward-looking, not backward. That why, even if tomorrow's qtrly #'s are good, the forward guidance will be lean, and the share price will suffer.
It's all about FORWARD GUIDANCE.
If numbers are a little soft, but guidance is strong, AAPL will go UP.
The street doesn't care about past numbers in December. It's SENTIMENT and FORWARD GUIDANCE, that's all.
Sentiment: Strong Buy
Apple is expected to set a new quarterly record for revenue this quarter based on tremendous iPhone sales and the success of the iPad mini. The company is also looking to potentially break its earnings per share record.
Using conservative estimates and Buffett's owner earnings methodology, Apple's stock appears to be currently undervalued by about 10%. Hardly a huge bargain, but a technical oversold panic bottom in the coming weeks should provide an attractive entry point for a long-term investment in Apple stock.