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Goldman Now Aggressively Selling Apple To Clients, Hikes Price Target To $600

Tyler Durden's picture





 

In case one was wondering how the Goldman trading team was axed in Apple, we now know that they are pushing their inventory of stock in the name out of the door and to clients harder than ever, having just released a forecast with a $600 price target. However, with nearly 200 hedge fund holders in the name, and pregnant to the teeth in the stock, we fail to find who the incremental buyer of GS' AAPL stock will be.

From the report:

We are raising our estimates after this quarter’s upside results. For FY2012, we forecast revenues of $148.26 billion and EPS of $40.36, up from $138.34 billion and $35.13. Our forecast now calls for revenues and EPS of $166.09 billion and $44.55 in FY2013 and $186.24  billion and $49.10 in FY2014, up from $160.55 billion and $40.03, and $180.83 billion and $43.50, respectively. Even after this quarter’s  upside, we believe the year is chock full of catalysts to drive further share price momentum. We continue to expect a late March quarter  iPad refresh and a lower price point for the iPad 2, as well as a mid-year iPhone refresh. We believe the MacBook Air will continue to gain share in the PC sector, and we believe Apple will finally launch an iOS-based television in late 2012 or early 2013. Finally, our expectation for a dividend announcement this year could represent a critical catalyst that brings a new class of investors into the stock.

Yes: dividend investors. And also a catalyst for the outflow of growth investors.

Full report:

 

 


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Wed, 01/25/2012 - 08:28 | Link to Comment lolmao500
lolmao500's picture

Apple love slavery. Their business is based on slavery in China. It'll be a happy day when they go bankrupt.

Wed, 01/25/2012 - 08:31 | Link to Comment roy10
roy10's picture

Which company does not produce in China? If you boycott everybody that prodices in China, you'd be living on the street.

Wed, 01/25/2012 - 08:44 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Apple is just to remind everyone how a company selling a product that is actually BAD FOR YOU (yes muppets, those little white things you slip into your ears, to lose yourself in what-ever you do, are deafening you, every day, regardless of volume, it was Job's parting gift to the world, deafness).... is now the 58th largest nation in the world, cash-wise...

And this is apple, pure consumer play. Do the math for GE et. al. And what is apple not declaring?

Regardless, I call the apple top. 

After Top, Topple! 

ori

/watershed-day-

Wed, 01/25/2012 - 08:50 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

The world is imploding....eat apples....buy gold.

 

 

 

Wed, 01/25/2012 - 08:56 | Link to Comment French Frog
French Frog's picture

"we fail to find who the incremental buyer of GS' AAPL stock will be."

---> there's always a new sucker round the corner.

And when you run out of the old type of suckers, there's always a new breed happy to take its place...

---> "a critical catalyst that brings a new class of investors into the stock."

Wed, 01/25/2012 - 09:03 | Link to Comment LuKOsro
LuKOsro's picture

Looks like it is time to fade the euphoria. Offload them shares!!!

Wed, 01/25/2012 - 09:13 | Link to Comment Oh regional Indian
Oh regional Indian's picture

I second that. Heartily. 

If for nothing else, then on principle. Ahhhaaaahhaa! Sorry, couldn't resist that.  ;-)

ori

Wed, 01/25/2012 - 09:19 | Link to Comment French Frog
French Frog's picture

There's nothing wrong with 'principles'; a rare commodity these days...

Wed, 01/25/2012 - 10:02 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Indeed FF, priceless.

ori

Wed, 01/25/2012 - 13:46 | Link to Comment Don Birnam
Don Birnam's picture

"Finally, our expectation for a dividend announcement this year could represent a critical catalyst that brings a new class of investors into the stock."

The grift begins. Was not the same exuberant expectation visited upon Cisco Systems for years: "Cisco will pay a dividend soon, which will introduce a fresh group of income-oriented investors...to buoy the shares !" And what do we have with CSCO ? A bountiful yield of 1.2% per annum. Indeed, worth the wait. One would have been better off purchasing a pallet of nickels, and storing it with Kyle Bass' hoard.

-- This, whilst Goldman breezily downgraded Philip Morris International last week -- with PM yielding 4.2%. There is grifting method in this madness.

Who comprise Goldman's current clientele ? Whose portfolio can afford such sage investment "counsel ?"

Wed, 01/25/2012 - 08:42 | Link to Comment junkyardjack
junkyardjack's picture

Well the externalize the costs of society from their business.  As long as countries allow them to use slave labor to create their products they will be a highly profitable company.  Luckily there are many countries that will have no problem doing this for the right kick backs so if China ever decides it cares about its people, Apple will move to the next region.

Wed, 01/25/2012 - 10:20 | Link to Comment e-recep
e-recep's picture

You typed this message on a device that is made in .... where? Not China?

Wed, 01/25/2012 - 10:57 | Link to Comment sessinpo
sessinpo's picture

It might still be possible, but you never know what to believe

http://www.computersmadeinusa.com/

Wed, 01/25/2012 - 12:25 | Link to Comment lolmao500
lolmao500's picture

It was made in Taiwan. So suck it.

Wed, 01/25/2012 - 10:51 | Link to Comment ffart
ffart's picture

Well, if you compare the actual products and not whatever people around here are on about, Android's market is a hellhole, their OS is about 30% slower even with the better hardware they tout, and my mom can only figure out how to work the iPad. The electronics aren't manufactured in America? Well no shit, you can't even source a lawnmower engine in America anymore. Welcome to the 21st century.

Wed, 01/25/2012 - 11:16 | Link to Comment Widowmaker
Widowmaker's picture

You're a fucking tard.

Quit pretending to cross conscience and business.

Thu, 01/26/2012 - 02:52 | Link to Comment darkhorse222
darkhorse222's picture

idiot-HP, Dell etc, use the same companies for manufacture-the Windoze crybabies are coming out of the sewers...to whine

Wed, 01/25/2012 - 08:30 | Link to Comment roy10
roy10's picture

$600B is actually a conservative valuation for a company generating $20B in cash per quarter.

Stop bashing Apple - it's useless and a little pathetic to be honest.

Wed, 01/25/2012 - 08:48 | Link to Comment Vic Vinegar
Vic Vinegar's picture

and your comments are useless and more than a bit pathetic to be honest

Wed, 01/25/2012 - 09:00 | Link to Comment BorisTheBlade
BorisTheBlade's picture

It might be a conservative valuation, but only with some rosy assumptions, like this cashflow of US$20B per quarter is sustained indefinitely. Hoho, and I don't think Tyler is bashing Apple per se, just how exactly many times GS dumped 'assets' on their 'clients' that turned out to be worth 'slightly' less than GS estimated them be? I can probably recall a few.

Wed, 01/25/2012 - 08:31 | Link to Comment El Gordo
El Gordo's picture

Well hell, let's just dump everything and go all in on Apple based on this

Rosy Scenario (not related to my friend Rosy Palm).

Wed, 01/25/2012 - 08:45 | Link to Comment palmereldritch
palmereldritch's picture

$600 or $99 on a 3 year contract

Wed, 01/25/2012 - 08:42 | Link to Comment misterc
misterc's picture

Apple goood. Apple aaaalwaaays groooowing.

My opinion:
-Apple store / in-store concepts pursued in order to make up for margin compression
-heavy competition from Android
-erratic anti-customer behavior as all firms grown to big to manage show time after time ("The customers are wrong. We know better what to produce.")
-new Final Cut X: terrible product, unusable in pro production environment, no compatibility to earlier versions, premature, buggy release

But clearly, this direct grab at retailers' margins with their own stores is a sign to me that something is not quite right.. 

Wed, 01/25/2012 - 11:07 | Link to Comment dakine
dakine's picture

Yup, reminds me alot about what Sony did too. Look at where that got them?

Wed, 01/25/2012 - 08:42 | Link to Comment Catullus
Catullus's picture

I would say "Not sure I would buy one share of company for the same price as one of their best selling items." but they're selling so many of them that yeah that makes sense. I wonder if apple will ever a buy a producing rare earth metal mine to control their input costs.

Wed, 01/25/2012 - 08:42 | Link to Comment eBuddha
eBuddha's picture

anyone else notice that Monday's call by GS and MS that U.S. fixed income had seen their "low yields for the year" and that bonds were a screaming SALE --- coincided with the end of the pullback and bonds have traded higher ever since?

they are either the stupidest form of scum or the scumiest form of stupid.

Wed, 01/25/2012 - 08:49 | Link to Comment Little Red Rooter
Little Red Rooter's picture

Jim Smith grew a big mob of pears

Which he stashed in his reinforced lair

Cousin Jo bought up Apple

Which left Jim quite baffled

Coz you can't make a pie out of shares    

 

Wed, 01/25/2012 - 08:48 | Link to Comment Cdad
Cdad's picture

As I said last night, this trade looked to be over at 16:49 hrs last night, @ $468 and change...just minutes after the stock resumed trading.  Tough call to make, considering that it is WS's darling...but there it is.

Wed, 01/25/2012 - 08:50 | Link to Comment battle axe
battle axe's picture

So, with out Jobs, Apple is a buy? I don't know about that one. I think you give this one some time before jumping in, see how it plays out.

Wed, 01/25/2012 - 09:05 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Jobs is gone?

 

That's a solid sell signal there.

Wed, 01/25/2012 - 10:44 | Link to Comment Real Money Wins
Real Money Wins's picture

Just remember that if it looks to good to be True it probably is!

The Phrase for the Day is "Do Your Due Diligence"

Wed, 01/25/2012 - 08:50 | Link to Comment francis_sawyer
francis_sawyer's picture

SOLD to you bitchez!

Wed, 01/25/2012 - 08:50 | Link to Comment Watson
Watson's picture

I agree with roy10.

ZH is a welcome change from the legion of perma-bulls and stock promoters, and has come up with some spectacular trading ideas in the past.

However, critising a successful company that produces real physical product that loads of people, all over the world actually want to buy, seems a bit silly. Particularly since Apple does not receive ex or implicit government support (and indeed, with a cash balance sheet position that makes a government rescue particularly unlikely).

Sorry Tyler, but I do not think it sensible to blindly try to find things wrong with everything.

Wed, 01/25/2012 - 09:01 | Link to Comment Coke and Hookers
Coke and Hookers's picture

"However, critising a successful company that produces real physical product that loads of people, all over the world actually want to buy, seems a bit silly."

 

Apple dosen't produce anything and doesn't even know how. They are a design and marketing bureau for Foxconn.

Wed, 01/25/2012 - 09:09 | Link to Comment tarsubil
tarsubil's picture

Smoke and mirrors is the future of business. Apple is just way ahead of the curve.

Wed, 01/25/2012 - 11:09 | Link to Comment Spastica Rex
Spastica Rex's picture

I got zinged yesterday for calling Apple a marketing firm, maybe becasue I left out design. 

I think you are right on.

Wed, 01/25/2012 - 09:03 | Link to Comment Vic Vinegar
Vic Vinegar's picture

Watson come here!

You called yourself out after noting I agree with roy10

The rest of your comment didn't save you, BTW.

For that you get

http://www.youtube.com/watch?v=jRixmFAdwv4

Maybe you can be roy10's online sweetheart?  Or maybe you already are?  Or maybe you already are him?  

I don't care either way.  As one used to say on Zero Hedge, Good Luck Trading.

Wed, 01/25/2012 - 09:52 | Link to Comment Jim in MN
Jim in MN's picture

So when the broad market takes a 20-30% dive, Apple just goes up because 'the gadgets is shiny'.

Moron.  You need to stay here until you see the big picture.

Zero real returns across all asset classes in the mid-term.  Think.  It's not even algebra (well maybe a little).

Japanification and the 'no bond haircuts' policy from the KremlinFed means we keep bleeding out to serve the FIRE sector bondholders and assorted other beggars. 

Anyone who's been here a while can list the dropping shoes, black swans, anvils, pianos, Foo birds etc. that await. 

So: positioned for downdrafts?  Or just floating around looking at shinies?

Corruption beats shiny. 

Wed, 01/25/2012 - 08:58 | Link to Comment Everybodys All ...
Everybodys All American's picture

Not far from over a half a trillion market cap. Can you say i-bubble.

Wed, 01/25/2012 - 09:03 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Can you say sold at the top of the hill.

 

 

Wed, 01/25/2012 - 10:06 | Link to Comment The Grip
The Grip's picture

Here in Toyland, this bubble may have a ways to go. Remember that in 2011 something like 90% of the world's PCs still ran Windows. There's still lots of market share to chase with iDistractions as long as Ben's handlers keep the Ponzi running.

Wed, 01/25/2012 - 09:01 | Link to Comment Little Red Rooter
Little Red Rooter's picture

Agreed. I love ZH but the quest to find doom looks overly keen sometimes, which undermines site credibility - after all, the situation IS so bad it does not need much hype.

Apple have been a great innovator and make a profit, good on 'em. But in these times, I'd rather have a spade than an iPad.

 

Wed, 01/25/2012 - 09:11 | Link to Comment chrispycrunch
chrispycrunch's picture

ZH's doomsday scenario isn't on Apple directly, but on GS's action to pump Apple to get buyers for stocks. What good is a "buy" call on Apple when a "buy" call would have been more valuable 10 or 15 years ago when the stock was 100x cheaper? 

It's like Zynga. The early investors are up 100x. The ones buying stock right now are the suckers because the easy money has already been made.

Wed, 01/25/2012 - 09:13 | Link to Comment Everybodys All ...
Everybodys All American's picture

Incredible times we live in when 45 million Americans are on food stamps with over 8% unemployed and an American company takes in $45 billion in a qtr. Something is a miss. How does that happen? $5 trillion in new debt for one. Slave labor in China for two. 107% debt to gdp in the US currently and rising way faster then most want to admit. Once the US loses their credit rating again look out. The bond vigilantes will be all over this trade.

Wed, 01/25/2012 - 10:02 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Yep, we are Japan 2.0.  Same as it ever was.  But hey, volitility is good for those who can stay ahead of the fluctuations.  There is no price discovery there is no price, there is only ebb and flow until there is nothing.

Wed, 01/25/2012 - 09:05 | Link to Comment Cone of Uncertainty
Cone of Uncertainty's picture

So Google reports and the stock shits the bed, Apple reports and its up 8%.

Reggie really fuckede up with this one.

Not that he is wrong, its just that his timing really sucks donkey nuts.

Wed, 01/25/2012 - 11:21 | Link to Comment Widowmaker
Widowmaker's picture

Middleton is shilling exactly like he get's paid to do.  Nothing but a mouthpiece.

Don't forget GOOG is still in downward decline.  The loss that keeps on losing (winning if you are not an idiot with a Middleton position).

Wed, 01/25/2012 - 09:17 | Link to Comment niktamere
niktamere's picture

sell me some puts

Wed, 01/25/2012 - 09:26 | Link to Comment youngman
youngman's picture

Its a religion...its like tithing the Morman church.....you own it because you love it...its cool baby..

Wed, 01/25/2012 - 09:31 | Link to Comment Catullus
Catullus's picture

One share = price of an iphone?  eh....

Wed, 01/25/2012 - 09:37 | Link to Comment 5-4-3-2-1-1-2-3...
5-4-3-2-1-1-2-3-3-2-1---0's picture

Are these analysts predicting the death of founder and guru Steve Jobs every quarter from now on, which had definitely boosted sales last time? 

Wed, 01/25/2012 - 09:46 | Link to Comment Jim in MN
Jim in MN's picture

Lay down with Chinese government, get up fleeced.  Just a question of when.

Pennies in front of steamrollers = Crapitalism

Wed, 01/25/2012 - 09:47 | Link to Comment ACjourneyman
ACjourneyman's picture

Google at 700, Apple at 600, should be a shorter's wet dream.

Wed, 01/25/2012 - 09:56 | Link to Comment niktamere
niktamere's picture

dont wake me

Wed, 01/25/2012 - 09:47 | Link to Comment hotkarlandthecl...
hotkarlandtheclevelandsteamers's picture

The incremental buyer may just be Reggie and all his boom bust blog subscribers he got short when he was on CNBC saying margins were going to collapse when the stock was trading $270.

Wed, 01/25/2012 - 09:57 | Link to Comment BLOTTO
BLOTTO's picture

The very first Apple Computer cost $666.

I dont trust that scum bag - no offence... he never developed anything to benefit society...only gadgets and crap

Wed, 01/25/2012 - 10:05 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Not to forget the 1984 ad that got them flying. That was creepy too.

ori

Wed, 01/25/2012 - 09:58 | Link to Comment monopoly
monopoly's picture

I just do know know why so many keep bashing AAPL. Yes, they have their production outside of the US but they do employ over 40,000 here. Most are retail and not high paying jobs but they are jobs. (And full time employees do get excellent benefits.) There are so many crap companies out there I find it self defeating when we talk down one of the few companies that consistently does well.

We have destroyed our own economy with the demands of unions and the "me too" generation which is slowly slipping away. This govt. has created so many brick walls for companies, are you surprised we continue to ship our business overseas. Do you want to deal with unions when you are growing a company. Right to work states seem to have part of the answer. No you are not going to make 60.00 an hour with benefits on an assembly line, but you have a job. That is reality.

Waiting for "Apple to go bankrupt" is an absurd statement. 

Wed, 01/25/2012 - 09:59 | Link to Comment LawsofPhysics
LawsofPhysics's picture

So goldman is short apple then, good to know.

Wed, 01/25/2012 - 10:08 | Link to Comment HD
HD's picture

I would be shocked if Apple hasn't peaked - at least for now. It's a well run, aggressive company with a near monopoly - but not forever...

Wed, 01/25/2012 - 10:31 | Link to Comment ProtectiveFather
ProtectiveFather's picture

Other than the new-ish tablet market, what could Apple have a near monopoly in? Maybe in Macs. Yeah, that must be it. They have a complete monopoly in the Mac market. The also rule the iPhone market. Ok, now I see where you're going with this.

Wed, 01/25/2012 - 10:22 | Link to Comment Frastric
Frastric's picture

Time to short Apple.

Wed, 01/25/2012 - 11:03 | Link to Comment saycheeeese
saycheeeese's picture

GS buys IPAD and Iphone.... and sell AAPL as a "hedge"

Wed, 01/25/2012 - 11:25 | Link to Comment NuYawkFrankie
NuYawkFrankie's picture

A headline I pray for:

Goldman Now Aggressively Selling Apples To Clients -  from wooden crates ouside of 55 Broad St.

http://www.britannica.com/EBchecked/media/97369/Man-selling-apples-during-the-Great-Depression

(Wow - that guy in the flat cap looks like he just stuffed an apple in his pocket without paying - looks suspiciously like he could be related to Blankfein, maybe his grandfather... go figure!)

Wed, 01/25/2012 - 12:10 | Link to Comment Georgesblog
Georgesblog's picture

We must be toddlers, in Goldman's estimation. Creating a market where there isn't one, inflating a bubble on their word, and pushing paper has all of the integrity of a crack dealer. I hope they don't find any takers, at anything near that price.

http://georgesblogforum.wordpress.com/

Wed, 01/25/2012 - 13:12 | Link to Comment ebworthen
ebworthen's picture

"Cheap valuation, time to buy!"

Please, Jobs is dead.

They must sell product hand over fist to keep this inflated stock price.

One misstep, one bad acquisition, and this stock could be back to $350 in the blink of an eye.

Why buy here?

$600 a share? Possible, but probable?  Worth betting on?

Wed, 01/25/2012 - 14:41 | Link to Comment Bertie Wooster
Bertie Wooster's picture

Apple is a good citizen, ZH should stick to picking on the elite shitstains of the world like Larry Fink, Jaime Dimon, and this guy...

Personalize your iPod with free engraving. http://store.storeimages.cdn-apple.com/2309/store.apple.com/rs/css/i/ale...); background-attachment: initial; background-origin: initial; background-clip: initial; background-color: initial; position: absolute; z-index: 11; top: -93px; color: #333333; background-position: 0% 0%; background-repeat: no-repeat no-repeat; padding: 0px; margin: 0px;">

Inappropriate message text.

  http://store.storeimages.cdn-apple.com/2309/store.apple.com/rs/css/i/aos...); background-attachment: initial; background-origin: initial; background-clip: initial; background-color: initial; width: 275px; position: relative; clear: both; border-image: initial; background-position: 0% 0%; background-repeat: no-repeat no-repeat; margin: 0px; border: initial none initial;">

Engraving is easy and it's free - just start typing your message.

Line 1

Please make sure that everything is spelled correctly as laser engraving is permanent.

 

Wed, 01/25/2012 - 14:51 | Link to Comment Bertie Wooster
Bertie Wooster's picture

I think the only loser in this piece of turdy reporting is Zero Hedge.  

ZH ruins it's credibility with this kind of nonsense.  Apple, minus it's POSITIVE cash hoard, trades for somewhere between 5-8 times 2012 earnings.  Goldman is a bunch of legalized crooks, but they aren't shorting Apple today, not unless they are nuts.  Your editorial staff realizes that Goldman put a $600 price target on a stock that's $420 as of last night, right?  This would be totally insane to even sell at $445-455 today, much less go short.

Apple is a good corporate citizen who's only "crime" is outsourcing it's manufacturing overseas, which is exactly what any business here in Ameriker is doing because the imbeciles that make up the rules in this country have made it this way (labor is too expensive here).

Beating up on Goldman makes sense, but not when you use flimsy arguments which have no support.

Zero Hedge is only hurting itself by burning credibility.  Stick with the plethora of rigging scams out there.

If you REALLY wanna write something relevant about Apple, you can write about how banks like GS rig the stock prices post earnings to make gains on expiring options.  Spend some time there, and you'll actually be a decent reporter.

ZH, what a joke.

Thu, 01/26/2012 - 18:35 | Link to Comment ebworthen
ebworthen's picture

Gee, I don't know, if I'd bought 100 shares at $200 or $300 - selling at $420 would be prudent - considering that Steve Jobs is not at the helm anymore (other than his remnant spirit in the hallways).

The suckers bet would be to hold or buy it now at all time highs based on a $600 GS call.

 

Tue, 02/28/2012 - 22:20 | Link to Comment Bertie Wooster
Bertie Wooster's picture

That's what the guy said who bought at $79 and sold his shares to you at $200, or was it $300?   $700?

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