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Apple Inc. Message Board

  • investora2z investora2z Oct 18, 2013 6:46 AM Flag

    Improved sentiments

    The sentiments are surely better now, and the last couple of months have seen the stock break out of the trading range. A few months ago people were talking about sub $300 levels for the stock, and now there are voices which are saying that it may test the all time high of $705. The Carl Icahn tweet did the stock a lot of good. Now analysts seem to be finding reasons to buy the stock. The situation on ground has surely not changed that dramatically to start expecting $700 instead of $300. In any case, it is often better to follow the smart money (Carl) rather than the analysts, and a few important things may have changed. The company may be able to deliver better numbers in forthcoming quarters. An article on seekingalpha has given ten reasons for buying the stock. The author mentions new deals, surprise sales, analyst revisions, heightened brand awareness (most valuable brand), competitor stagnation, and a new shareholder friendly attitude from management as reasons for expecting a $700 price soon. There is specific mention of the NTT DoCoMo Deal which will bolster sales in Japan, and the increased market share in US. The analysts are expecting better numbers, and the management guidance is also more optimistic. Apple is making inroads into educational and other organizations for institutional sales. Another analyst had mentioned that the high resale value of Apple products is a competitive advantage which cannot be replicated easily. Sites like Usell (USEL) always benefit from new launches by Apple due to demand for used handsets of prior versions. Usell reported great growth in revenues in the last quarter. The fundamentals of Apple were never bad. For a few months the perception had become excessively negative. If the quarterly numbers are better than estimates, then it may gain more strength.

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