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Apple Stands Firm On CEO Steve Jobs’ Return In June

Aviv — Wed, 25 Feb 2009 23:56:32 +0000

Apple’s annual shareholder meeting was relatively quiet. Aside from the by-the-book motives of some parties who grilled Apple execs about Steve Jobs, no journalists or reporters were allowed to directly relay information to the press, and as usual Apple did not release a transcript.

Macworld notes that one of the first questions asked at Wednesday’s annual shareholder meeting was directly centered around Apple CEO Steve Jobs, his health and his return to Apple. Jobs is currently on a medical leave from Apple until June, and the last we heard was that the SEC was launching an official investigation into the situation.

Even though some sites are sensationalizing Wednesday’s shareholder meeting by saying that it was “dominated by politics”, it was not. This is standard affair and every year Apple’s board advises its shareholders to steer clear of these potentially fruitless affairs. Why these other websites would attempt to create a seemingly turbulent environment remains unknown. However, because of the unfortunate visibility shed, their reports may get echoed.

As we made available in Apple’s proxy report before the meeting, and outlined here, shareholders were voting on certain proposals that could potentially change or alter the way Apple handles some of its fiscal reports, and even shed light onto trade-secret partnerships. However, on rather known guidance from Apple’s board, shareholders voted against every single one of these proposals. As far as the business side of things during the meeting, they were standard affair.

“A shareholder asked whether Apple’s board of directors had kept investors in the dark about the status of Jobs’ health and inquired about a succession plan. Board member Arthur Levinson, who is also chairman and CEO of biotech firm Genentech, replied that the board disclaims information that it deems important and proper, and that it talks regularly about a succession plan.

Otherwise, the meeting served largely to have executives assure shareholders that the company was on the right track. Filling in for Jobs—and donning a Jobs-like pair of blue jeans and black (though collared, not turtleneck) shirt—chief operating officer Tim Cook cited strong Mac, iPod, and iPhone sales in the last year and hailed the App Store as “absolutely the envy of the industry.” He also reassured shareholders that he was “very confident of our product pipeline,” Jonathan Seff explains for Macworld.

Another question asking for clarification about Apple’s decision to pull out of Macworld was answered by Apple COO Tim Cook and chief financial officer Peter Oppenheimer. When asked whether Apple would ever reconsider the move, Cook explained that they have “very fond memories” of the Macworld Expo, however reiterated the company’s stance on utilizing their retail chain of 250 stores to create “many, many Macworlds each week.”

Notably, the audience sang Steve Jobs “Happy Birthday” in lieu of his 54th birthday on Tuesday, and tim Cook promised that Jobs would get the message.

Thanx to 9to5mac for the image

Apple Shareholders Re-elect Board, Vote Proposals Down [U]

Aviv — Wed, 25 Feb 2009 19:43:24 +0000

Even though many shareholders and investors felt downright lied to throughout the ongoing Steve Jobs health issues, the company’s shareholders have re-elected the same board of directors and voted down proposals they felt unnecessary.

Acting on relatively firm confidence and guidance from the board itself, Apple’s board of directors was re-elected including CEO Steve Jobs, Former Vice President Al Gore, and Google CEO Eric Shmidt.

As we outlined earlier today, shareholders were voting on the following proposals:

• the election to the Board of the eight nominees named in this Proxy Statement (Proposal No. 1);
• a shareholder proposal regarding a political contributions and expenditures report, if properly presented
at the Annual Meeting (Proposal No. 2);
• a shareholder proposal regarding the adoption of principles for health care reform, if properly presented
at the Annual Meeting (Proposal No. 3);
• a shareholder proposal regarding a sustainability report, if properly presented at the Annual Meeting
(Proposal No. 4); and
• a shareholder proposal regarding an advisory vote on compensation, if properly presented at the Annual
Meeting (Proposal No. 5).

True to Apple form, there will be no transcript of this event, and Apple is not allowing live reporting. However, we have made the official proxy statement available for download. Any and all information pertaining to the proposals and board guidance, as well as shareholder and investor relations can be found in the proxy documents.

Update: Fortune is providing as much of a sneak peak into the shareholders meeting as possible. While we know people in attendance, they did not attempt to make it inside the meeting with wireless machines.

Apple Stays Resilient In a Turbulent Financial Environment

Aviv — Fri, 06 Feb 2009 00:39:42 +0000

In an extremely turbulent financial market, Apple’s fundamental business remains resilient. The company has positioned itself to withstand the current economic recession better than many of its competitors, and has continued to deliver promising numbers.

In a tough economy where headlines have been dominated by layoffs, cuts and downsizing, Apple has remained focused on securing its bottom line and treading lightly with product announcements. In terms of marketing Apple has maintained a mystique around the company and its products. Even though swarms of people are demanding cheaper devices, smaller notebooks and tiny iPhones, Apple has steered clear of entering new product categories. Which in terms of volatility from a shareholder’s perspective is a good thing. There’s no reason to gamble on a new product, or revolutionizing a new product category, when consumers just are not spending money.

As we’ve explained before, and as seems to be the case moving forward so far in 2009, Apple is focused on fundamentally securing its bottom line. Diversifying the iPhone product lineup by adding higher-end models, more storage and new features, while at the same time increasing global positioning and availability, remains high on Apple’s priority list. Most recently, they have announced that they will be bringing the iPhone to the United Arab Emirates around February 15th.

In regards to the other prongs surrounding Apple’s business initiatives, pent up aggression, if only from devoted users is surmounting. The Apple TV and Mac mini have both been left dangling for some time now leaving many wondering when an update or refresh is coming, if at all anytime soon. Inevitably, due to their lower price points, most of Apple’s less expensive products seem more in tune with the current economy. Even still, this won’t sway Apple’s product roadmap as they are not developing products or scheduling releases based on current conditions. “Innovating out of a recession” is something Apple continues to believe in, not innovating for it. Their guidance doesn’t seem out of place, as Apple recently announced a record quarter posting $1.6 billion profit based on sales of roughly 23 million iPods.

While dealing with massive speculation regarding CEO Steve Jobs’ health conditions, the stock has recently taken a beating. Over the past week however, Apple shares have remained strong after falling to new 52 week lows hovering in the high seventies. Uncertainty surrounding how the company will be run once Jobs officially retires, coupled with Apple’s relative, yet understandable confidentiality while broaching the subject, keeps the stock’s volatility rate higher than it should be. The way they’ve handled the situation leaves the media entangled in endless speculation, with some analysts demanding a public appearance from the CEO himself.

Undeterred by the media and demanding tech industry, Apple has kept its secrecy at high levels. As we move forward, Apple is positioned perfectly to trek through the next 14-16 months while methodically releasing products at its own pace. They have pulled out of weighing trade shows, and are now able to retain control over another facet of their business, when and how products are released.

Perhaps Apple’s fundamental business practices will never be reflected properly through Wall Street. But if the way Apple’s stock has been behaving over the past week is any indication as to what may come when CEO Steve Jobs finally retires, it may not be as bad as most people anticipate.

Disclosure: Long AAPL

Analysts Maintain Strong Buy Ratings for Apple (AAPL) Stock

Dave — Mon, 24 Nov 2008 18:04:17 +0000

Apple stock (AAPL) has seen its most significant growth this month following JPMorgan Chase & Co.’s lifted profit estimates for 2009 and 2010 attributed to accelerating notebook sales.

Bloomberg reports that San Francisco-based JPMorgan analyst, Mark Moskowitz, has noted that Apple’s opportunity to increase their notebook market share is something that “warrants increased attention.” He then went on to add, “Our conversations with industry contacts suggest that Mac notebook momentum has been increasing, whereas desktop could be bumpy.” Similar sentiments were felt by Oppenheimer & Co. analyst Yair Reiner, who revealed to investors that “Even with the consumer battling hypothermia of the wallet and soul, we believe the fundamental attraction of the Mac — its aesthetic appeal, usability, and integrated multimedia applications — will continue to peel users away from the Windows mold.”

Moskowitz is now projecting that the Cupertino-based company will earn $4.86 a share and $5.34 a share in the fiscal years ending in September of 2009 and 2010 respectively. This is up from his previous estimates of $4.53 and $4.83.

In Apple’s current condition, numerous analysts are urging clients to buy. Standard & Poor’s, Thomas Smith, has made a buy recommendation noting that “We also believe present valuation levels are attractive for the pace of earnings-per-share growth we anticipate.” Smith describes Apple’s wares as “simple, superior, and differentiated products,” a fitting description that not many can disagree with. Smith does, however, go on to add that because of the economy’s downturn, the demand for consumer electronics will soften.

Barclays Capital (BCS) analyst, Ben Reitzes, has also advised clients to buy, revealing that “Apple’s valuation is compelling, given its cash of $27 a share and prospects for $10 a share in free cash flow in fiscal 2010.”

While all of these analyst’s estimates appear on the positive side, non of them come close to investment bank Needham analyst, Charles Wolf’s strong buy rating who has placed a herculean 12 month price target of $240! While that may be shooting for the stars, he is basing his estimates on Apple’s Q4 results, namely the success of the iPhone.

While Apple stock has fallen nearly 55 percent in 2008, shares of the company are currently trading at $89.53, up nearly $7.00 (8.40%).

Will Apple (AAPL) Hit $60? Brace Yourself If It Does

Aviv — Fri, 21 Nov 2008 22:36:58 +0000

Yesterday, Apple (AAPL) coasted through a late day crash before closing at $80.85. The lowest numbers the company has seen since 2006, pre-iPhone.

The major concern for most people here is that the stock so easily sailed down to $80 per share. After hovering around the mid-eighties for a while, and a few nice rallies thrown in with some general market confidence, it seemed that $80 per share wasn’t going to happen. The problem is that every time Apple’s stock levels off, it crashes based on market instability and drops further than before. Apple is not the only big tech company this is happening to, so it’s not an isolated situation.

“Apple’s fundamentals are strong, right? Yes they are. But that has absolutely no bearing here. Apple is simply falling with the rest of the market, and so long as there’s no confidence in the market, it will continue to fall. I suppose you could argue that Apple has taken more than it’s fair share, but trying to argue that point with the market is an argument you can’t win. You can only accept it for what it is,” Zach Bass writes for Seeking Alpha.

Brass is right for the most part. Apple is not falling because the company is doing anything wrong, or making the wrong moves. The bottom line is that Apple is not immune to outside market conditions. He continues, “…if you recall, not more than a couple months back, we had respected Apple analyst Gene Munster reiterate his price target for Apple of $250! So what’s crazier now, a 300% gain to hit Munster’s target, or a 25% decline to reach 60?” — For the sake of the market and Apple shareholders, let’s hope the stock rebounds back from $80, and confidence in Apple’s long-term revenue starts reflecting Apple’s market position on Wall Street.

Apple hitting $60 per share is unlikely based on the market’s current trends, however if it does, brace yourself. Apple has been setting trends on Wall Street and it’s performance has been a relative indicator of the market’s general fluctuation. If Apple (AAPL) hits $60, there will be much bigger factors weighing in.

Shares of Apple Inc are currently trading at $82.58, up 2.09 (2.60%) on the day.

Disclosure: Long AAPL

Apple (AAPL) Shares Get Slammed As Market Plunges

Aviv — Thu, 20 Nov 2008 22:39:45 +0000

Shares of Apple Inc (AAPL) closed at their lowest price since December 2006. While some may see this as a buying opportunity, the company has shed well over 50% off of their market cap since hitting all time highs above $200 per share.

Apple shares are down nearly 60% for the year. These are staggering numbers when compared to the company’s market position and enormous debt-free cash pile. Not only is Apple positioned perfectly to navigate efficiently through the next 16-18 months, they have clear, level-headed management making good decisions.

We’ve seen the explosion of iPhone revenue and the incredible long-term wealth the device will bring to Apple, but still the company is not immune. As the global credit crunch tightens and more and more company’s are forced to layoff employees, struggling to survive, does Apple seem like a good buy? Some will say yes, while others believe it will hit $60 per share. The stock is extremely volatile at the moment, however can be looked at as an incredibly unique wealth building opportunity for many people.

Apple shares crashed today closing at $80.85, up 0.36 (0.45%) in after hours trading. The last time the stock hit this price was December 28, 2006 when the stock closed at $80.87.

Disclosure: Long AAPL

Apple’s Annual SEC Filing: Advertising, R&D Budget Increase, Patents

Aviv — Wed, 05 Nov 2008 22:24:08 +0000

Every year Apple files an annual report with the SEC. Today, Apple filed its annual report for 2008, and after digging through 93-page release, Tricia Duryee from paidContent.org points us to a few noteworthy items.

Although the entire document is actually a very interesting read, if you simply don’t have the patience or nerve to skim through the entire 93 page document, major notes of interest are listed below.

Whether you are a modest shareholder in the company, investor, loyal fan or have been getting interested in the company policies and practices, the annual SEC report is a good chance to get “in-the-know” on actual numbers and performance results directly from Cupertino.

• Employees: At the end the year, the company had about 32,000 full-time equivalent employees and an additional 3,100 temporary equivalent employees and contractors. That increased tremendously from the year ago period when the company employed 21,600 full-time employees, and 2,100 temps. This may have been driven in part by new store openings. The Company opened 50 new retail stores in 2008, bringing the total number of open stores to 247 as of September 27, 2008.

• On Tony Fadell’s departure: On Monday, we learned that Fadell, Apple’s SVP of the iPod division, was leaving for personal reasons. In his new role, he will serve as special advisor to Steve Jobs. Fadell will receive a salary of $300,000 annually, and will be entitled to bonus and other health and welfare benefits generally available to other senior managers until March 24, 2010.

• Advertising and R&D budgets increase: The Company’s R&D budget continues to increase year-over-year. In 2008, it totaled $1.1 billion, increasing 41 percent from $782 million in 2007, which compared to $712 million in 2006. “To remain competitive, the company believes that increased investment in research and development and marketing and advertising is necessary to maintain or expand its position in the markets where it competes…”

• International mix: In 2008, Apple became less dominant on the Americas segment. Although no market besides the U.S. comprised of more than 10 percent of the company’s sales, the Americas segment consisted of 45 percent of revenues, dropping from 48 percent a year ago. Apple breaks-down revenues for Europe, Japan and Asia Pacific. In 2008, net sales in Europe increased 40 percent over 2007, but remains 23 percent of total net sales. Japan net sales increased $427 million or 39 percent compared to 2007. Sales in the company’s “other segments,” which includes Asia Pacific, also experienced an increase. Of particular note is iTunes sales in Asia Pacific, which grew by 109 percent.

Other interesting tidbits not mentioned above surround and relate to Apple’s relentless stance on patenting their technology, software and products. The reports explains that Apple is “vigorously defending more than 21 patent infringement cases, 13 of which were filed during fiscal 2008.” The report goes onto explain the outcome possibilities to various legal situations as well as the iPhone’s position in the cut-throat mobile market.

With the June 2007 introduction of iPhone, the Company has begun to compete with mobile communication device companies that hold significant patent portfolios. Regardless of the scope or validity of such patents or the merits of any potential patent claims by competitors, the Company may have to engage in protracted litigation, enter into expensive agreements or settlements and/or modify its products. Any of these events could have a material adverse impact on the Company’s financial condition and operating results.

In early September, we reported about Apple’s ultimate decision to settle and pay $14 million to resolve the 20 outstanding investor derivative law suites over backdated stock options. While a publicly traded company (in the spotlight) such as Apple surely keeps its financials as transparent as possible, Apple will be watched more closely than most.

You can find the entire SEC filing in Apple’s Investor Relations section here.

[MacDailyNews via paidContent.org]

Apple Is The Best Run Company In America

Aviv — Wed, 05 Nov 2008 13:15:45 +0000

In a time of vast economic downturn and financial instability, not many companies are able to shake-up management, launch high-end technology products, and position themselves as a leader both on, and off Wall Street. With CEO Steve Jobs at the helm, Apple has officially set itself apart from the rest of the floundering tech industry, again.

Not surprisingly, Apple has had the ability to steer clear of disastrous mistakes for the most part. Relying on its brand reputation, customer loyalty, and immensely experienced top-line management, Apple remains focused and headed in the perfectly right direction to make it through the next 16-18 months with relatively little negative effect on the company’s bottom line. With nearly $25 billion in the bank debt free, Apple has the potential to make some very savvy business acquisitions, or investments, while their competitors scramble to stay afloat. It’s a cash market, and even though Apple isn’t divulging any information to its shareholders in terms of plans for the money, most can rest assured that when the right opportunity aligns itself, Apple will make the move. “We’re very comfortable with our cash position… it’s not burning a hole in our pocket,” CEO Steve Jobs recently explained.

Reports of Apple slashing Q4 iPhone production rates have actually boosted confidence in the company’s ability to foresee downturn, ultimately alleviating any doubt in management’s ability to effectively run the company through the next 16 months or so. A recent statement from Apple spokesman Bill Evans to Macworld magazine explained that Apple will not be releasing any new products before the holiday season. While fans who lust over the company’s new products may initially be shocked by the news, shareholders and investors will find relief in the lack of speculation and rumors that may be preventing consumers from making purchasing decisions based on “waiting for the next revision,” of any particular product.

At this point, many companies are deep in transitional lay-off periods, trying to figure out how to break the news to their employees. Dell, as recently as today announced new layoffs. And yet Apple remains incredibly firm, utilizing its most persuasive abilities to lure a chip design genius from IBM. Even though the entire scenario has resulted in an aggravated lawsuit from IBM, the court’s ruling takes place in California, where non-compete contracts tend to mean less-than-average.

Apple continues to do an extremely good job at differentiating itself from the rest of the industry. In stock terms, the company is trading at an incredibly low multiple of 15 times earnings. And that doesn’t only lend way for a complete buy-back in the stock, but its full value is clearly not being recognized by the market, understandably. The iPhone sector of Apple’s business is a prime example of this.

As some have already realized, “The iPhone Revenue Bomb” is a much bigger deal than many had expected. Attempting to analyze and understand the true long-term potential that the iPhone has, can truly be mind-boggling. As the company and product line grows and diversifies, global reach and positioning will increase as well. Apple will continue to add iPhone distribution points, lower the price, introduce new (lower/more expensive) models, and overall cut costs where it can, while making sure that anybody in the world who wants an iPhone, can get one… Cheap, MacBlogz previously explained.

A statement such as “Apple is the best run company in America” may seem too forward, or moreover blunt. But the foundation Apple has set in place lends itself to that of a near perfectly run company, no matter the economic conditions. Arguing that the company doesn’t reveal enough information to its shareholders, regarding any subject, will always remain debatable. Many believe Apple should divulge information about its top-line execs, most importantly CEO Steve Jobs, in which case Apple meets the matter with extremely tight lips. In dancing around such a sensitive subject, many have found that Apple has inevitably set itself up for Steve’s departure from the company. The fact of the matter is that it is inevitable. Steve will retire. But we should all find deep reassurance in knowing that Apple can perform, and will continue to perform with a methodical, level head. And that is what makes Apple the best run company in America.

Cramer: Apple (AAPL) Shares Have Already Bottomed

Aviv — Thu, 30 Oct 2008 14:40:43 +0000

Shares of Apple Inc (AAPL) have continued to rise on strong confidence in the company’s global position. Analyst Jim Cramer, one of the company’s biggest believers, continue to hammer home his belief in the company’s overall market dominance.

Cramer’s analysis that Apple has already bottomed should “ring a bell” for many listeners. If you have been waiting for Apple to hit $80/share, Cramer’s telling you not to hold your breath, and chances are he’s right.

The past few days have treated Apple shares well as the market realizes how genuinely premium the company’s position is in the marketplace. Currently, the stock is trading around $109.17 up $4.62 (4.42%), as it rides out an early morning rally.

[MDN via The Street]

Apple (AAPL) Shares Bounce Back on Market/iPhone Confidence

Aviv — Wed, 29 Oct 2008 16:01:11 +0000

Shares of Apple Inc (AAPL), surged both late yesterday afternoon and early this morning as the market and Wall Street begin realizing the company’s premium positioning. As the stock market fights its way through these difficult times, Apple is believed to be the company to watch, as its swings dictate the market’s performance.

Although Apple shares have been slammed overall, falling nearly 50% from their all time high of $202, which they hit late last year (2007). The company is positioned extremely well for the next 14-16 months, while their competitors might be hit much harder during this economic downturn.

Not only can their enormous pile of cash (which sits around $25 billion) be likened to an enormous cushion, but recent information released by Apple during the Q4 Earnings Call, explains their long-term revenue plans/numbers, with both the iPhone, and general subscription based revenue over time. It is staggering. Andy Saky from Bullish Cross has been cited all over the web for taking Apple’s released numbers, and reconstructing them to reflect Apple’s true iPhone sales. Those are staggering as well.

As some have already realized, “The iPhone Revenue Bomb” is a much bigger deal than many had expected. Attempting to analyze and understand the true long-term potential that the iPhone has, can truly be mind-boggling. As the company and product line grows and diversifies, global reach and positioning will increase as well. Apple will continue to add iPhone distribution points, lower the price, introduce new (lower/more expensive) models, and overall cut costs where it can, while making sure that anybody in the world who wants an iPhone, can get one… Cheap.

“Apple is the best run company in America,” Jim Cramer recently claimed. “Watch Apple… How they move determines how the market will react,” Cramer continued. “We always have a stock that the rest of the market piggybacks from, right now it’s Apple.”

Pile on a brand new notebook line just in time for the holiday season, a revamped iPod line, ever-growing market share, and tenacious marketing, and you’ve got what many see as the stock to own.

Back on October 21st, Apple shares hit a major surge in after hours trading, bringing the stock up to $104.25, up 13.95% from $91.49. Currently, Apple shares are hovering above $105, up 5.20% from their previous close at $99.91.

Disclosure: Long AAPL