October 26, 2012

WEEKLY MARKET DIGEST: QE ADDICTS FIGHT ANOTHER POSITIVE DATA POINT

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)

QE ADDICTS FIGHT ANOTHER POSITIVE DATA POINT

October 26, 2012

Another positive economic data point was reported on the U.S. economy this morning. GDP grew by 2% vs. 1.9% consensus.

Better economic data means less chance of QE expansion. QE addicts do not like better economic data.

Where will the markets go next? It depends on who wins the battle between QE addicts and those who like a better economy. There is no way to tell who will win in the short-term. … Please click here or the title below to read more.

October 26, 2012

APPLE’S QUARTER WAS LOUSY, BUT STOCK STILL HEADED TO $1000 $AAPL

Despite disappointing quarterly earnings from Apple, my long-term Apple (AAPL) stock target of $1,000 remains intact.

Apple ‘s earnings report was bad on almost all metrics, but future guidance was downright shocking. For Q1 Apple now sees EPS of $11.75 vs. consensus of $15.53. For Q1 Apple now sees revenues of $52 billion vs. consensus of $55 billion.

In my analysis, not much has changed from a fundamental perspective since the release of bad earnings. Some may find it disconcerting that gross margins dropped to 40% vs. consensus estimate of 40.6%. In my models, I had anticipated a drop because of new products and new technologies in those products. … Please click here or the title below to read more.

October 26, 2012

BAD APPLE EARNINGS: WHAT TO DO NOW $AAPL

Apple reported bad earnings. The company missed estimates on almost all metrics as shown below.

Earnings came in at $8.67 vs. published consensus of $8.75 and whisper numbers around $9.10.
iPad sales came at 14 million vs. published consensus of 17 million and whisper numbers around 18 million.
Mac sales came at 4.9 million vs. estimates of 5 million.
Gross margins came in at 40% vs. estimates of 40.6%.
Apple guides for first-quarter EPS of $11.75 vs. consensus of $15.53.
Apple guides revenues for Q1 of $52 billion vs. consensus of $55 billion.

On the positive side, the company sold 26.9 million iPhones vs.

… Please click here or the title below to read more.

October 26, 2012