Last Weeks News…

  • Posted: 03 March 2009 11:46 AM

    From Market Watch - Last Week…

    Can Apple keep up its Mac sales in market slump?
    Analyst downgrades stock to sell rating on worries about falling PC demand

    I especially love this quote:

    Shaw Wu of Kaufman Bros. holds a buy rating on Apple’s stock. However, on Tuesday, he trimmed his second-quarter revenue estimate on Apple to $7.7 billion from $7.8 billion, and left his $1.06 a share earnings target unchanged. Wu said Apple’s Mac business looks weak in the current quarter, and he isn’t expecting the line of iMacs to be refreshed until June, at the earliest.

    And Wu is a tech analyst?

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    Posted: 03 March 2009 02:48 PM #1

    rattyuk - 03 March 2009 03:46 PM

    From Market Watch - Last Week…

    Can Apple keep up its Mac sales in market slump?
    Analyst downgrades stock to sell rating on worries about falling PC demand

    I especially love this quote:

    Shaw Wu of Kaufman Bros. holds a buy rating on Apple’s stock. However, on Tuesday, he trimmed his second-quarter revenue estimate on Apple to $7.7 billion from $7.8 billion, and left his $1.06 a share earnings target unchanged. Wu said Apple’s Mac business looks weak in the current quarter, and he isn’t expecting the line of iMacs to be refreshed until June, at the earliest.

    And Wu is a tech analyst?

    Today he changed his tune

    Shaw Wu, Kayufman Bros.: ?We view this refresh as a moderate positive,? he writes. ?The reason we are not more upbeat is because we would have preferred more aggressive price points.? He does think that the announcements could add 100,000-200,000 incremental Mac units in the March quarter, providing potential upside to the Street consensus of 2.2 million to 2.3 million Macs. Wu maintains his Buy rating and $120 target.

    I guess we just made up his .1 Billion shortfall in revenue according to his new analysis.  I wonder why he didn’t point out that yesterday he was full of shit but today he is much smarter and his old estimate was okay but he needed to get paid so he came out with a better estimate which is wrong and so he will make a new estimate.  I hope people don’t follow these analyst too close and actually base their buy/sell decisions on these day to day analysis.  I could restate Wu position.  He has not a clue on how Apple is doing, but to get paid he needs to guess so he will put out numbers close to the consensus view and then update them weekly so he gets his paycheck.

         
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    Posted: 03 March 2009 05:20 PM #2

    I agree that it was pathetic what wrong way Wu said about not expecting updates until June.  This is in the face of warnings from Apple to suppliers that inventory on 20” imacs was not being replaced.  To make such a statement you would have to have some real evidence to the contrary (i.e. that there would not be a refresh) evidence which which he didn’t have.  Really hard to understand and gives perspective to all of his “opinions”.