THE APPLE INVESTOR: Apple Ready To Blow Through $300

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AAPL Up Amidst Waning Enthusiasm
Shares of AAPL are up a dollar and change as the market trades sideways with investor enthusiasm dropping after a good run in the markets. Future catalysts for AAPL include monthly NPD data (Mac / iPod business); iPhone unit updates and AT&T exclusivity expiration; iPad sales updates; new content revenue streams such as video and books; and the refresh of Apple TV. AAPL trades at 15x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).

Traders See The Stock Soaring Through $300 (Various)
The September bump is about to come to fruition:

  • Andy Zaky at Seeking Alpha believes that the technical picture suggests AAPL is in for one last pullback over the next 1-5 days. Don’t be fooled. He is eying the 2012 $300 call options. While the stock might be in for a short-lived pullback, after that “we’re off to see the Wizard at $300 a share.”
  • Scott Redler, contributor at Forbes, says that AAPL has been one of the most reliable pattern trading stocks in the market. This current pattern is setting up for a major core buy. When AAPL trades above $279-280 holds, investors and traders should pay attention; it will see $300 and then $320.

Get More Carriers Already! (Barron’s)
Steve Jobs should be less worried about Android and more worried about getting more carriers (put the cart before the horse). Bernstein Research analysts Toni Sacconagh believes Apple needs to add versions of the iPhone for the largest carriers including: Verizon (U.S.), Vodafone (Germany), NTT DoCoMo (Japan) and China Mobile. Apple is working on a CDMA iPhone which Toni believes could hit the market by early-to-mid 2011.

Apple Versus Amazon: Game On! (Various)
Who will win out and are they even competing?

  • Amazon launched a new sortie in its bid to avoid having the Kindle demolished by the iPad. The message? Beautiful women own Kindles. Dumb guys own iPads. Watch here.
  • As anticipated, Best Buy will sell the Apple iPad in all of its 1,093 U.S. stores beginning September 26. This must mean that inventory constraints are letting up. It also puts the iPad directly against Amazon’s Kindle, as Best Buy plans to sell it along with other e-readers.
  • The rise of iPad hasn’t undermined the popularity of the e-reader, it has bolstered it. According to In-Stat, global shipments of e-book devices will nearly triple over the next few years, growing from 12 million units this year to 35 million in 2014. Driving that growth, is the single-purpose device taking precedence over the multimedia experience and falling e-reader prices.

Cramer Continues To Pound The Table On Apple (Bloomberg)
Jim Cramer on CNBC’s Mad Money last night recommended Apple on growing product demand and expanding sales in emerging markets (China). Cramer yammered that Apple shares may climb to $325, higher than his previous price-target of $300. He touts that Apple is “the greatest retailer on earth,” averaging sales of about $4,500 per square foot at the company’s stores. He’s been pounding the table all summer.

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