Respected Analyst Makes Bearish Comments On Apple

Appleis stock lost ground today as respected analyst Daniel Kunstler made negative comments about the company. Apple had ample example to follow as the rest of the markets also sank on credit fears, a possible default on some loans by Russia, and continued signs of a corporate slowdown.

If Russia should actually default on some of its loans, the shock waves would be felt far and wide. Japanis markets are also reflecting a slowing in that countryis economy. In the US, the euphoria surrounding a lowering in interest rates from the Fed seems to have completely run its course. The Nasdaq has given back some 60% of the gains made on Wednesdayis record setting run, while the Dow has handed over 90% of its own gains that day. Many investors simply sat on the sideline today.

In the Apple Orchard, branches continue to rustle with pre-MACWORLD San Francisco hype and ongoing pessimism from the galleries concerning Appleis ability to turn itself around easily. Daniel Kuntsler, an analyst we have often quoted in the Apple Stock Watch and The Mac Observer in general, says that faster machines in and of themselves simply wonit cut it. According to a Reuters report:

"Maybe. Well, the short answer is no," said Daniel Kunstler, an analyst at J.P. Morgan H&Q. He hastened to add that Apple did not need to buy or be bought so much as to find an alternative to focusing on making commodity-like personal computers.

"Just riding the PC market cycle is not anybodyis idea of a good time," he said, pointing to competitors who have branched out into Internet appliances and high-end enterprise computers.

Kunstler said Apple had done a mediocre job of touting its media capabilities, although in new television advertisements actor Jeff Goldblum pushes Apple home movie software.

Those are strong words from someone who is not blind to Apple and the Mac market. More negative comments from the same report:

Apple failed to impress with the last product round, said Stephen Baker, an analyst at PC Data, noting Appleis unit sales in the first three weeks of December were 40 percent below a year ago, versus a 25-30 percent decline for PC rivals.

"They didnit do a lot with the iMac other than change the colors," he said of the low-end line, "and the Cube has been disappointing in terms of price value," he added of the stylish desktop that has not sold as well as expected.

"Even the people intensely loyal to Apple want to get value for what they spend," especially as PC makers slash prices.

"We are pessimistic," said an analyst who requested to remain anonymous at a fund with a significant Apple holding. Of course, "they have plenty of company when it turns to figuring out what the next move should be."

Steve Jobs will be delivering a keynote address on Tuesday, January 9th, at 9:00 AM PST. HE is largely expected to announce several new products at the event/

Apple held up fairly well considering the negativity surrounding the company at the moment. The stock closed at 16 3/8, down 11/16 (-4.03%) on volume of 7,355,300 shares trading hands.

The Nasdaq saw losses across most sectors closing at 2407.65, down 159.18 (-6.20%).

The Dow shared the Nasdaqis woes. The Dow closed at 10662.01, lower by 250.40 (-2.29%).

The S&P 500 fared no better, closing at 1298.35, a loss of 34.99 (-2.62%).

Akamai received attention from Upside Today in a report on Internet based storage, but still closed lower at 19 7/16, down 1 7/16 (-6.89%) on volume of 3,041,600 shares trading hands.

Adobe closed at 16 3/8, a loss of 11/16 (-4.03%) on volume of 7,358,600 shares trading hands.

IBM was among the few gainer in todayis session closing at 94, a small gain of 13/16 (+0.87%) on light volume of 7,991,300 shares trading hands.

Motorola continued to lose ground closing at 21 3/16, a loss of -1 7/8 (-8.13%) on lighter than normal volume of 17,458,400 shares trading hands.

Earthlink dropped much of the gains recorded on Wednesday, shaving off 10%. Appleis ISP partner closed at 6 1/4, down 3/4 (-10.71%) on volume of 1,268,000 shares trading hands.

Gateway closed at 19.46, lower by 2.29 (-10.53%) on volume of 3,077,500 shares trading hands.

Dell saw a drop today even as Michael Dell, the companyis CEO bought almost 12 million shares of stock. This is usually a sign that a CEO has faith, or wants to show faith, in their company. The stock closed at 19, down 3/16 (-0.98%) on light volume of 28,543,300 shares trading hands.

Hewlett Packard closed at 30 5/8, a loss of 4 (-11.55%) on volume of 9,529,800 shares trading hands.

Intel continued to take a hit for being in the chip business, closing at 32 1/16, off by 1 47/64 (-5.13%) on light volume of 44,913,300 shares trading hands.

Microsoft is expected to show that it is willing to do anything to continue growth and that extreme measures are necessary to do so. Bill Gates will be showing an MS branded PC at the Consumer Electronics Show in Las Vegas tomorrow according to This is likely to upset the companyis OEM customers. The fallout should be intense if this happens. The company closed at 16.67, down 0.38 (-2.23%) on volume of 10,963,200shares trading hands.

For full quotes on all the companies mentioned in this article, we have assembled this set of quotes at Yahoo! for your reference. For other stories regarding Appleis stock activity, visit our updated Apple Stock Watch Special Report.