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Sat, Jul 04, 2009 - 11:17 AM EDT  —  AAPL: 140.02 (-2.81, -1.97%)  |  NASDAQ: 1796.52 (-49.20, -2.67%)

Analysts behold the power of Apple’s iPhone
Thursday, November 08, 2007 - 08:58 AM EDT

"Before Apple Inc. shares cracked $100 six months ago, fund manager Stephen Coleman predicted they would surpass $200 by year-end. His post on the Web site Seeking Alpha drew ridicule from other investors," Connie Guglielmo reports for Bloomberg. "'I was called a fool and worse,' said Coleman, founder of Daedalus Capital LLC in St. Louis, an Apple holder since 2004. After a 67 percent rise in fourth-quarter profit, the shares reached a record $191.79. Analysts say they will keep rising."

MacDailyNews Note: At the end of last month, the same Stephen Capital said that Apple Inc. shares will rise further, "going to $600," although no specific time frame was given at the time. Now, Guglielmo reports, "Coleman, using more aggressive cash-flow predictions for the iPhone, says the shares will reach $600 in 18 months." [Thanks to MacDailyNews Reader "Macaday."]

Guglielmo continues, "Chief Executive Officer Steve Jobs jumpstarted optimism about the power of the iPhone, the $399 Web-surfing mobile device he introduced in June, to generate a steady flow of cash. Analysts are revaluing the stock because each sale brings Apple a cut of monthly wireless service fees from AT&T Inc., and sales of the phone are recognized over 24 months."

"This has led analysts including Credit Suisse's Robert Semple and Deutsche Bank's Chris Whitmore to use multiples of cash flow rather than earnings to estimate Apple's stock price, reflecting an anticipated pileup of deferred revenue. Twelve analysts raised their estimates above $200 last month, even as earnings per share multiples reached their highest in two years," Guglielmo reports.

"Jobs, 52, hasn't made it easy for analysts to create their models. Apple doesn't disclose its wireless cut or whether it gets an up-front payment for each two-year contract from San Antonio-based AT&T Inc., the largest U.S. wireless carrier. AT&T charges $60 to $220 a month," Guglielmo reports. "Estimates of Apple's monthly take vary from $10 to $20 per subscriber. Cash and short-term investments at Apple rose by $2.9 billion, or 12 percent, to $15.4 billion in the fourth quarter from the third in the first full period of iPhone sales."

Guglielmo reports., "Piper Jaffray & Co. analyst Gene Munster bases his $250 estimate, the highest on the Street, on 25 times 'booked' profit of $9.50 a share in calendar 2009, higher than his $7.06 estimate for reported earnings. 'The shipments in any given quarter are laying the foundation of what's going to happen in the future,' said Munster, who recommends buying Apple shares. 'People are having trouble getting their arms around it because they think it's too good to be true.'"

Much more in the full article here.

[Thanks to MacDailyNews Reader "Mike in Helsinki" for the heads up.]

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Nov 08, 07 - 10:22 am Comment from: Mauritius Kestrel

I've always liked that Coleman guy.

Louis: My God! The Dukes are going to corner the entire frozen orange juice market!
Ophelia: Unless somebody stops them...

Coleman: ...or beats them to it. Eggnog?

Nov 08, 07 - 10:29 am Comment from: Predrag

An obscure reference to an 80's movie (Trading Places, with Eddie Murphy, Dan Aykroyd and Jamie Lee Curtis) - what a way to open discussion!

Nov 08, 07 - 10:34 am Comment from: Sorry Charlie

I simply don't like the iPhone and I'm a big Apple fan from the very begining.

I don't like the iPodTouch either. Niether do I like iPods, outside of putting them on a huge playlist occassionally and forgetting about them.

What is has to do I think is with my vision. For years I've used CRT's (glossy of course) and it has ruined my nearsightness (so says the docs) and my fingers are the man type. Big and fat.

Sure I could wear bi-focals and use a pen. But then again I got a huge 30" and a MacBook Pro matte.

Edge network is slow and can cost money, so really free Wi-Fi is the way to go. and I got a laptop with a larger screen and more capability.

So I didn't get excited about the iPhone and I'm not excited about a lot of Apple hardware lately. My friends are older and I usually buy new Mac's for them for the holidays, but they detest the glossy iMac's and the MacPro's are too much for them.

I wish Apple would get with the program.

Nov 08, 07 - 10:41 am Comment from: Mauritius Kestrel

" . . . what a way to open discussion!"

Behold the power of MDN's iThreads?

wink

P.S. And not to excessively seek the eggs of lice with prehensile precision but you left out Denholm Elliott!

Nov 08, 07 - 10:42 am Comment from: informed

Way to go "Sorry Charlie."

Now that you've shared your unique situation in that post, Apple's market share is sure to plummet.

Nov 08, 07 - 10:54 am Comment from: Not Bill

@Sorry Charlie

You an impressive human being.

Nov 08, 07 - 11:00 am Comment from: Denny C.

Sorry Charlie,

Sorry to break this to you. It's not about what you do. It's about our kids do.

D.C.

Nov 08, 07 - 11:03 am Comment from: Gore

Well I agree with Charlie that glossy glass is a deal killer. I just passed on buying 30 new imacs due to the glossy screen issue, In a business setting flourescent lighting and windows really tire out the users. So I got mini's and paired them with samsung monitors. Net result: investment in apple kit reduced 50%. And if they eliminate the mini and dont have a nonglossy imac alternative I'll drop the cpu as well.

Nov 08, 07 - 11:05 am Comment from: Darth Mac

Apple going to $600 ??? It would make them as big as Exxon Mobil. Simply not realistic. It's time to wake up Apple Fanboys...

Nov 08, 07 - 11:07 am Comment from: ian

lol gore that's ridiculous

Nov 08, 07 - 11:21 am Comment from: Steve516

I imagine ExxonMobil will grow a bit, and with crude edging $100/barrel now... profits are sure to be up...

But I agree, $600 seems really high.

Then again, what is the next move for Apple? The long awaited AppleTV explosion? A Newton revival? New Mac Pro? What about that pesky 700mhz spectrum?

Nov 08, 07 - 11:24 am Comment from: @ Gore

Don't let the door hit you on the way to Dell Store..

Nov 08, 07 - 11:28 am Comment from: Henry

Where I'm at I got a Sony Store right next to a Apple Store.

Sony carries matte and glossy screen notebooks and computers in all types.

Apple only carries glossy.

Both look hot and I can make Windows secure and cool looking because I'm in IT.

What computer system did you think I went with?

Sony.

Nov 08, 07 - 11:28 am Comment from: Predrag

To Mauritius Kestrel:

I had to stop somewhere, although Denholm Elliot should have made the list, having been quoted (from his Coleman part) in your post. Oh, and what an excellent way to phrase "to nitpick"!

Nov 08, 07 - 11:32 am Comment from: Gigio

Sorry to break this to you. It's not about what you do. It's about our kids do.

Yea but I control the money.

I'm not ruining my kids eyesight for a shiny screen. They got matte screen laptops running Windows, what the rest of the world uses.

Apple screwed up bad.

Nov 08, 07 - 11:33 am Comment from: @gore

WAAAAAAAAAAAAAaaaaaaaaaaa
Me don't wan't glossy. My IT budget to small to by screen cover to reduce glare. Me take me ball and go home.


WWWWWWWWAAAAAAAAAAAAAA

MDN WOrd: Effort
Gore's lack of effort in his research resulted in his looking like a fool on MDN

Nov 08, 07 - 11:39 am Comment from: Predrag

to Henry:

Well, your choice of Sony tells us that you are willing to sacrifice your own man-hours to properly secure your windows machine, and maintain it secure over its lifetime. Depending on your hourly wages, this may end up being a very expensive investment, compared to Apple's solutions.

I have a glossy MacBook and have no issues with the gloss of its screen (so far). However, if I had found it unacceptable for my work, I would have thought long and hard about what it would take for me to own Windows computer. I am also in IT and would be able to properly secure a Win machine. However, after first six months of its life, a Windows machine (even the cheapest Acer laptop with matte screen) would end up being more expensive than the cheapest matte MacBook Pro, when I tally up all my own hours spent on maintaining my Windows computer. I simply cannot afford to spend my precious free hours away from the things I care about (family, friends, fun stuff) in order to keep my home computer safe.

This all is without taking into consideration any of the numerous advantages OS X has over Vista, or the ones Macs, with their bundled software, have over any PC laptop and its bundled software (even Sony).

The moment I discover I have vision problems from working with my MacBook, I will look into protective anti-glare films (they're out there, albeit not the ideal solution), or I'll trade up to a MacBook Pro.

It seems, though, that I may be a member of the silent majority of the population that actually prefers the glossy screens of new Macs.

Nov 08, 07 - 11:39 am Comment from: Big Al

I play ripped DVD's on my Apple TV to my 48" widescreen LCD TV and it is just as good as a DVD. That new codec that Handbrake uses is really something.

If that's the codec Apple will use when all the Studios finally all let them sell Movies over broadband, Apple TV will really take off. I hope they stream movies as well as sell them outright. That will give Apple a fourth revenue generator.

Nov 08, 07 - 11:39 am Comment from: Oigio

Gigio,

If you can tolerate windows you can tolerate anything.

Nov 08, 07 - 11:41 am Comment from: Dijonaise

@Henry:

Good for you man, it takes an IT pro to make that Sony POS work. As Nelson would say "ha-ha!"

Nov 08, 07 - 11:46 am Comment from: Mauritius Kestrel

"If you can tolerate windows you can tolerate anything."

To test that theory, Vista should come pre-installed with desktop pictures and screensavers of Steve Ballmer with his tongue extended while posing in a thong.

Nov 08, 07 - 11:47 am Comment from: ChrissyOne

So only 18 months until retirement. Sweet!

Nov 08, 07 - 11:48 am Comment from: Big Al

My local Best Buy carries a lot of laptops from a lot of makers including Apple. The only ones out on display with a matte screen are the Macbook pros.

Every other choice, cheap or expensive, has a glossy screen.

Every PC cloner is in big trouble if they don't carry matte screens.

Ya, right.

Take your Microsoft talking points and shove them where the sun don't shine.

Nov 08, 07 - 11:50 am Comment from: ChrissyOne

@ Mauritius Kestrel

I'm really starting to like you.

Nov 08, 07 - 12:02 pm Comment from: Maritius Kestrel

Thanks, C1.

And to test that theory, I'll keep changing my identity. Mostly through molting.

- this message was brought to you by the Twisted No Squirting Ape Harm Alert Foundation for the Preservation of Rare Birds of Prey (TNSAHAFPRBP for short).

wink

Nov 08, 07 - 12:09 pm Comment from: TowerTone

Yeah, speaking of "Trading Places", I would like to trade places with Jamie Lee's bra....

Nov 08, 07 - 12:11 pm Comment from: TowerTone

Maritius
You're just amping up the fun, aren't you?

Nov 08, 07 - 12:18 pm Comment from: ../.

"'I was called a fool and worse,' said Coleman, founder of Daedalus Capital LLC in St. Louis, an Apple holder since 2004.

But at least this fool is smarter than Laura Goldman.

Nov 08, 07 - 12:20 pm Comment from: Mauritius Kestrel

TT: I guess so. At least with enough dextroamphetamine to alter your acetylcholinesterase levels? I've wondered if anyone ever figured out the Ape Harm Alert part.

Ohmmmmmmm . . . . . . . behold the power.

wink

Nov 08, 07 - 12:31 pm Comment from: BeanCounter

Depending on your hourly wages, this may end up being a very expensive investment, compared to Apple's solutions.

Actually securing Windows isn't so hard. Once you get it there you can keep it there with auto-Ghosting.

No anti-malware needed.

Nov 08, 07 - 12:40 pm Comment from: Woody

Mauritius, you're fuxing my persepshuns! I'm so confused.

Nov 08, 07 - 12:42 pm Comment from: KenC

Not to be a naysayer, since I own 1215 shares of Apple, and I'd love the stock to go to $600, BUT, that would mean Apple would be worth about $500BILLION, which would put it around the same value as Exxon Mobil, the most valuable US company. Exxon has annual sales of $377M, in comparison to Apple's $24M, and Net Income of $39.5M, in comparison to Apple's $2+M. Apple has a LONG way to go in 18 months if it wants to be priced at $600 a share.

Nov 08, 07 - 12:57 pm Comment from: Mauritius Kestrel

Sorry, Wood man.

It's time for a multi-touch Zen garden. The shiny rock icons will represent a mother tiger with her cubs, swimming to a dragon.

Nov 08, 07 - 01:45 pm Comment from: ChrissyOne

Just a little note -

If you haven't looked at the market today, DON'T. It's terrifying. You should go outside and play. Trust me.

Nov 08, 07 - 03:31 pm Comment from: newton

@Ken...change M's to B's

@C1...good advice...though now is a good time to look under the seat cushions to fund adding to your AAPL shares wink

Nov 08, 07 - 04:09 pm Comment from: ChrissyOne

Just remember Fangorn's First Rule of Investing:

1. Don't Be Hasty.

Nov 09, 07 - 12:29 pm Comment from: Just me

To all you people giving those glossy screen haters grief, let me just say that *I* will never buy another glossy screen Apple product. I hate it. I am selling it and have already replaced it with a MBP. If Apple stops offering a matte screen, I will stop buying Macs.

And I work for Apple. (Corp headquarters, not retail).

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