The Unsinkable brian cork™

Brian Patrick Cork is living the Authentic Life

analysts and bloggers are such Rascals!

June27

so… personally, I just find this flat-out goofy. but, I acknowledge this is just how it all works.

Morgan Stanley Issues ‘Tactical Buy’ On Apple Valuation

today, Morgan Stanley analyst Katy Huberty issued a “tactical” buy recommendation on Apple (AAPL) shares.

“We believe the share price will rise in absolute terms over the next 60 days,” she writes in a research note. “This is because the stock has traded off recently, making short term valuation much more compelling.”

to be clear… Apple’s stock took a short-term hit recently because analysts like Huberty made a fuss over production issues coming out of Japan just after the earthquakes.

but, now, she notes that post-Japan production constraints have eased, and adds with improved component supply, “Apple is negotiating price cuts with some suppliers,” potentially boosting margins for the June and September quarters.” Huberty adds that “after meetings in Taiwan last week, we expect Apple order cuts to ease and iPhone/iPad production to begin ramping aggressively from August through year-end.”

Huberty adds that “Apple’s next iPhone will begin production in mid to late August and ramp aggressively” into calendar Q4.

isn’t this obvious?

as a direct result, AAPL this morning is up $2.34, or 0.7%, to $328.69.

why am I blogging about this?

…mostly because I do believe most people don’t understand how this is part of a game.

I called Huberty, but I know she won’t return the courtesy. but, she’ll read about it all, here.

consider prior posts of mine if only for perspective: brian cork on those Wallstreet Rascals!, Outside of the insiders, and After Hours Trading.

years ago, David Sugarman, himself, taught me that you should buy a stock never expecting to sell it. Apple has always fit that frame of reference for me. and, I always know that when analysts (and, more-and-more so today, bloggers) attack a stock, even indirectly, we know it’s an effort to create room and a buying opportunity for their “bank”. an example, here, is that we all knew the production issues in Japan would be short-term. they would impede retail initiatives. but, there was never any reason for someone with anyone “long” on Apple to be concerned. and, as many of you know, I’m convinced that Apple is a thousand dollar (or the equivalent after splits) stock inside the next five years.

what will always insult my sense of fairness and justice is that authorities understand this is part of the game and allow it by not enforcing “tactical” information designed to mislead citizens.

thank God, most of the day traders proved Darwin correct several years ago.

peace be to my Brothers and Sisters.

brian patrick cork

 

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What’s All This About?

"What am I looking at?", you might wonder.

Lots of stuff.

Meanwhile, here, I discuss events, people and things in our world - and, my (hardly simplistic, albeit inarticulate) views around them.

You'll also learn things about, well, things, like people you need to know about, and information about companies you can't find anywhere else.

So, while I harangue the public in my not so gentle way, you will discover that I am fascinated by all things arcane, curious about those whom appear religious, love music, dabble in politics, loathe the media, value education, still think I am an athlete, and might offer a recipe.

All the while, striving mightily, and daily, to remain a prudent and optimistic gentleman - and, authentic.

brian cork by John Campbell





photos by John Campbell

 

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