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Financial Alchemist
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Financial Alchemist covers financial markets and investing. Current market conditions are analyzed as well as investment opinion on select stocks. Additionally, the site includes fundamental analysis strategies and insight regarding market theory. Ar
Recent Posts Tagged With 'aapl'
Apple Inc (AAPL): Weaker Dollar Will Benefit Revenue Growth and Margins
Apple Inc. (nasd:AAPL) Rising gross margins stemming from increased recognition of deferred iPhone revenue has been a key factor in propelling Apple’s share price and EPS. I believe the next major tailwind will be increased revenue growth and high...
Apple Inc (AAPL): Q4 2009 Estimates
Apple (nasd:AAPL) reports its Q4 2009 results on Monday, October 19th. I am expecting revenue to increase 19% (Y/Y) to $9.374B and EPS to increase 25% to $1.57. I expect gross margin to rise sequentially to 36.7% from 36.3% reported in Q3. ...
Apple Inc (AAPL): Current Valuation Still Reasonable
Apple Inc. (nasd:AAPL) $162.83- Despite Apple shares rising more than 100% from its 2009 low of $78, the stock still appears to be attractively valued especially as a long-term holding. Using cash-flow and non-GAAP earnings, AAPL trades at less than ...
Apple Inc (AAPL): iPhone's Substantial Impact on Gross Margin
Margins held steady Q/Q at 36.3% (down 10 bps) versus expectation of ~200 bps of margin contraction due to mounting headwinds.Management issued Q4 GM guidance of 34%, 100 bps higher than Q3 33% GM guidance (which AAPL exceeded by 330 bps).Considering...
Apple Inc (AAPL): Examining the Prospects of a Low-Cost iPhone
Apple Inc (nasd:AAPL) For some time, many have speculated about an arrival of a $99 iPhone. Some analysts expect a low-cost model with scaled back features, such as 2.5G instead of 3G, no GPS, and possibly a smaller form factor. While I believe a low...
Apple Inc (AAPL): Snapshot- Apple's Cash Growth
Apple Inc (nasd:AAPL) $91.21- Here's a quick snapshot of Apple's cash holdings over the past 9 quarters. In the case of Apple, it's extremely important to focus on cash flow opposed to accounting (GAAP) income due to the massive build of deferred rev...
Apple's FY09 EPS Estimate Too Low
Apple Inc (nasd: AAPL)- Apple’s FY09 EPS estimate continues to be revised downward and now stands at a $5.08, a level Apple should easily exceed. The consensus FY09 estimate represents a 5.2% decline from FY08 $5.36 EPS, although revenues are forec...
Apple Inc (AAPL): Taking a Look at Mac Pricing
MAC DEMAND CONCERNS:For past couple months, Wall Street’s concern du-jour for Apple has been Mac demand. No PC/consumer electronics firm is immune to this economic downturn, but many analysts believe there is substantial downside risk for Mac sales...
Calculating Gross Margin for Apple's iPhone (4Q08)
APPLE INC (nasd:AAPL) According to my calculations, deferred revenue booked from Q4 iPhone sales carries a 55.5% gross margin. Gross margin on the deferred revenue (DR) booked from the first generation model averages about 29%. The average gross marg...
Analyzing Apple's iPod Business
Apple Inc. (nasd:AAPL)- Slowing iPod sales growth has been one of the chief concerns among AAPL investors because the iPod has historically been a major contributor to Apple’s overall revenue growth. The concern stems from the belief that the PMP m...
Taking an Alternative Perspective on Apple's iPod Growth
Apple Inc. (nasd:AAPL)- Analysts and the media have regularly cited slowing iPod sales as a major headwind for Apple shares. The iPod has been a major force in Apple’s total sales growth since it has been such a large percentage of Apple’s overal...
Apple's FY09 Gross Margin Expectations Too Low
Apple Inc (nasd: AAPL) - Apple’s FY09 gross margin should well-exceed management’s guidance of 30%. There are multiple factors that will support FY09 gross margins. 1) As iPhone’s revenue contribution to total company sales increases, overall g...
Apple to Surpass its iPhone Sales Goal of 10M in CY08
This article was a collaborative effort with: Andy Zaky from Bullish Cross Based on the tremendous efforts by members at Mac Observer’s AFB to track IMEI iPhone numbers, Apple has drastically surpassed analyst’ Q4 iPhone sales estimates, and...
Q4 Sales Estimates for Apple's 3G iPhone
Apple Inc. (nasd:AAPL) $152.65- Apple introduced the new 3G iPhone model on July 11, and sales thus far look to be impressive. Using the OS market share data from Net Applications and the IMEI tracking data from the Mac Observer’s Apple Finance Boa...
Understanding Valuation Multiples with Respect to Cash
A common mistake I see people make refers to how a firm’s cash stockpile is treated in the valuation process. Specifically, Investors err when they subtract cash from market value before calculating an earnings multiple that includes interest incom...
Apple vs Google: Detailed Comparison
I have been coming across many comparisons between Apple (nasd: AAPL) and Google (nasd: GOOG) lately, especially given that Apple’s market cap surpassed Google’s last week. A recent example is Felix Salmon, who doesn’t think Apple should be...
Apple Inc (AAPL): Are Investors Overlooking Cash Earnings?
Apple Inc (nasd:AAPL) $157.08: I believe investors have become overly fixated on Apple’s expected accounting income, while ignoring Apple’s impressive free cash flow generating ability. Free cash flow, not earnings reported in the accounting stat...
A Look at the 3G iPhone's Profitability
Apple’s 3G iPhone appears to be quite profitable. The fully subsidized price from AT&T is $199/$299 for the 8GB/16GB models, respectively- requiring a 2-year contract. If a current AT&T customer has recently purchased a discounted phone, then the p...
What Can Push Apple's Shares Higher?
Apple Inc (nasd:AAPL)- Apple has surged to $180 from $120 where it was trading back in February. Of course, Apple was trading near $200 at the end of December 2007, but sentiment turned and Apple’s shares plummeted January through March before reve...
Advantages to Controlling Hardware Selection and OS Development
PC Magazine contributor Sascha Segan shares his insight on Microsoft’s recent missteps with Vista and Mobile OS in this month’s edition (June ’08). His primary thesis is that there is a disconnect between Microsoft’s OS and the capabilities...
A Look at Apple's iPod Business
Apple Inc, (nasd:AAPL)- This article focuses on Apple’s iPod business. The iPod has contributed significantly to Apple’s growth the past several years. However, iPod unit growth has been slowing, as nothing can grow forever. Apple has made some m...
Apple's Q2 EPS Estimate Trend
Apple Inc. (nasd:AAPL) is scheduled to release earnings for Q2 2008 Wednesday, April 23rd. Below is some brief information on the historical trend of consensus estimates and reported earnings. This is a primer for a follow-up analysis I am currently ...
Valuation Analysis: Apple vs Amazon
In performing a valuation study on Amazon.com and Apple Inc. it is evident that both stocks are priced with high expectations for growth and profitability. Both trade at high P/E multiples; that doesn’t automatically signify that the two are overva...
Investors Overlook the Mac as a Windows PC
Much, if not all attention regarding Apple has been focused on the iPhone. Apple’s recent $200 price reduction on the iPhone resulted in analysts, journalists, and investors debating the true demand for new device. Additionally, the effects of the...
Positive Aspects to Apple's iPhone Price Cut
Here are several of Apple's advantages for pricing the iPhone high initially, and the benefits to later cutting price:1) Attract more non-AT&T customers to switch carriers. Apple receives bonus revenue for new subscribers. Eventually, Apple will have...
Barron’s Erroneous Take on Apple’s iPhone: Setting the Record Straight.
In Barron’s July 2, 2007 weekly print edition, Mark Veverka gave his analytical opinion regarding Apple’s prospect in the article titled “Fight Apple’s Temptations – Briefly.” Veverka seeks to make the point that the iPhone is not largely...
