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AAPL Coming Off Yesterday’s High
Shares of AAPL closed at another all-time record high yesterday however the shares were off this morning as the market flatlined despite a better-than-anticipated jobs report. The stock and the market are climbing up midday. Upcoming catalysts for Apple include monthly NPD data (Mac / iPod business); holiday iPhone and iPad sales updates and carrier expansion; new content revenue streams such as video, books and social (Ping); moving iTunes into the cloud; and the uptake of refreshed Apple TV. AAPL trades at 15x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
Analyst Says Shares Of Apple Going To $410 (BusinessWeek)
William Power at R.W. Baird initiated coverage on Apple with an Outperform rating and $410 price-target. Five Wall Street analysts think the shares could reach at least $400 apiece, with the most optimistic estimate at $450. On average, 38 analysts polled expect the shares to reach $370.50. It’s only a matter of time guys.
Morgan Stanley Believes China Is Key To Apple’s Growth (Fortune)
Morgan Stanley’s Katy Huberty is becoming another bull on shares of Apple. In her “bull case” scenario, Apple ships 80 million iPhones and 40 million iPads in calendar 2011, driving its stock to $500 a share by next August. The key to Apple’s future growth: China. The Chinese have a taste for “aspirational brands” like iPhones, iPods and iPads. Here “bear case” assumes 55 million iPhones and 25 million iPads.
Two Wall Street Behemoths Testing iPhone As Alternative To Crackberry (Bloomberg)
Bank of America and Citigroup are considering letting employees use the iPhone as an alternative to the BlackBerry for corporate use. The banks are testing software that’s designed to make it secure enough for company messages. The tests are the latest sign that RIM may be losing its tight grip on the corporate smartphone market, and namely Wall Street who have been attached to their devices since the first ones launched in 1999.
iAd Rolling Out Globally As Well As Setting Up Shop In NYC (MacRumors)
Apple’s iAd network is being deployed worldwide, expanding beyond North America and the UK, with developers reporting ad impressions coming from around the world, according to a new report. Developers report seeing ad impressions from new global locations, the report notes. Until recently, the service was only available in the United States and United Kingdom. This coincides with Business Insider’s report that Apple plans to open a new Manhattan office for the growing iAd team.
Cramer Touts Apple…Still (Seeking Alpha)
Jim Cramer praised legendary money manager Julian Robertson last night on Stop Trading! Robertson believes that, yes, Apple and gold can go up. Cramer urged investors not to be put off by the high price tag and to look at how much gold people are holding.
Daily Trader: Options Trade On AAPL To Minimize Risk (Minyanville)
Here are ways to play the nominally high dollar stock, AAPL, with a stock replacement strategy and how it affects overall risk.
- Bullish: Purchase the January 2011 $240 call for roughly $72. The option has a delta of 0.99. If Apple were to suddenly fall to zero, you would only lose $7,160 instead of $30,974. Overall you decreased your capital risk by 76.8%.
- Bearish: Buy the January 2011 $390 put for a net debit of roughly $81. The delta on this option is currently (0.98). If the stock were to be bought out at, let’s say, $1,000 per share, you could only lose the $8,100 paid for the option instead of the $69,042 you outright owned the name. That’s a capital risk reduction of 88.26%.
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