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It actually boosted Apple's stock

---This is why Apple's stock declined after they made this
announcement.---

At least as of Friday. From http://www.appleturns.com

High Finance Lesson Time! Know how to get analysts to start
upgrading your multibillion-dollar company's stock to "Buy"
status? Well, evidently all you have to do is publicly admit that
you massively misforecast your inventory needs and you're going
to miss two solid months of revenue from one of your major
product lines as you shut sales down completely until you can
get a replacement product out the door. Boy, we tell ya, some of
this corporate finance stuff strikes us as just a little
counterintuitive sometimes...


No kidding, though: following yesterday's revelation that iMacs
are now effectively nonexistent until third-generation models
ship in September, MacNN reports that Smith Barney has
upgraded its rating on AAPL to "Buy" and figures that the stock
might hit $37 sometime in the next year. Reportedly Smith
Barney sees lots to like in the imminent "launch of iPod mini in
Europe," the initial sales numbers for Euro iTMS, the advent of
the HP-branded iPod, volume shipments of the all-dual Power
Macs, the opening of Europe's first Apple retail store in London,
and yes, even the new iMac coming in September. Following
yesterday's AAPL drop, the firm states that it "would be
aggressive buyers" given the new lower price.


And Smith Barney's not the only firm with that sentiment,
because Macworld UK quotes analysts at Needham & Co. as
saying that "near-term weakness presents an excellent buying
opportunity, because the issue is one of supply, not demand."
Needham had already rated AAPL a "Buy," but it's gone so far as
to reiterate that rating in light of what we had figured sounded
like pretty bad news. Apparently those analyst folks disagree,
and if "Buy" ratings help Apple's stock regain some of the value
it lost when news of the iMac snafu went public, then hey, we
don't need to understand it. We just want the free money.


This all leads us to wonder what other seemingly bad news
Apple could leak that might prompt even more analysts to climb
onboard the "Buy" train. We're thinking that something along the
lines of yet another miniPod delay would make a few analysts'
eyes light up, while news of a catastrophic 90-nanometer G5
recall could bring virtually all of the firms into "Buy" territory.
And a revelation that Steve Jobs has come down with terminal
boneitis could lead to "Strong Buy" across the board. Who knew
that bad news could be so lucrative in the long haul?

Posted by: tic swayback   Posted on: 07/06/04 You are currently: a Guest | Members login | Terms of Use

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