[Eug]

Nice. Well over $130 now. It was below $120 just 2 days ago.

And here's one reason: Apple on track to sell 10 million iPhones in 2008-COO | Technology | Reuters

Apple Inc Chief Operating Officer Tim Cook reiterated to investors on Wednesday that the company was on track to hit its sales goal of 10 million iPhones this year.

[Powerbook]

Anyone can help me with the latest "P/B ratio" with Apple? The Q-10 numbers are a little bit complicated.

[Powerbook]

That's a cool idea to make more use of this thing of ours... ( )


Nike, Apple send iPod to gym

THE ASSOCIATED PRESS

BEAVERTON, Ore. -- Nike and Apple are making the iPod compatible with gym equipment.

The companies announced Tuesday that they are working with gym equipment manufacturers and health clubs to allow members to plug their iPod Nano into cardio equipment to track workouts, set goals and upload the information to a Nike Web site.

The new technology is expected to hit gyms this summer.

It's another major partnership for Nike Inc. and Apple Inc., which created Nike+ technology more than a year ago. The wireless system allows some Nike shoes embedded with a sensor to communicate with Apple's iPod Nano.

[Powerbook]

Apple iPhone targets RIM with corporate e-mail
March 7, 2008 9:31 AM ET
ReutersAll Reuters news

CUPERTINO, California (Reuters) - Apple Inc said on Thursday its iPhone soon will support corporate e-mail, targeting a new market and challenging the dominance of Research In Motion Ltd's popular Blackberry devices.

Apple also said it will roll out tools for developers to create software for the iPhone, news that was accompanied by a pledge from legendary venture capital firm Kleiner Perkins Caufield Byers to set up a $100 million "iFund" to back iPhone software start-ups.
"This takes the iPhone from being not really in the running in the enterprise to being very much in the running and gives RIM a serious challenge," Van Baker, an analyst with market research firm Gartner.

The move would help Apple hit its goal of selling 10 million iPhones by the end of this year, a target some analysts have questioned if the weakening U.S. economy takes a toll on consumer spending.
"Apple answered the majority of objections that most IT professionals had to the iPhone as an enterprise device," Baker said.

The shares of RIM , whose Blackberry products are widely used in corporations, fell 3.8 percent to $98.72 on the news on Nasdaq. The shares of Apple, which also makes iPod media players and Macintosh computers, fell 2.9 percent to $120.93.

Apple said the iPhone would work with Microsoft Corp's Exchange software for managing business e-mails, contacts and calendars and "pushing" that information to handheld devices.

"We are doing all of these things with the next release of iPhone software," Phil Schiller, vice president of global marketing for Apple, said at the company's headquarters. "I think enterprise customers are going to be pretty excited."

The new programming tools are also seen as a way to build more interest in the iPhone, which has so far only been able to run outside programs through the Web browser. The tool kit will let software makers write applications that can tap more of the iPhone's capabilities, such as its touch-sensitive screen and motion sensors.

"Starting today, we are opening up the same native (interfaces) and tools that we use internally to build all our iPhone applications," said Scott Forstall, vice president of iPhone software.
Programs will only be available through a new "apps store" on the iPhone and in Apple's iTunes software that currently sells music and videos. Apple will keep 30 percent of revenue, with the rest going to developers.
Apple Chief Executive Steve Jobs dismissed concerns the company was keeping too tight of a grip on iPhone software distribution.

"As a developer, your dream is to get your app in front of every iPhone user and hopefully they love it and buy it. That's not possible today. Even big developers would have trouble getting in front of every iPhone user," Jobs said.
"Are there going to be limitations? Of course. There are some apps we're not going to distribute. Porn, malicious apps."

John Doerr, a partner at Kleiner Perkins and one of Silicon Valley's most famous venture capitalists, said his firm started the $100 million iFund out of belief that the iPhone would prove to be a long-lived platform.
"We believe the mobile Internet is a platform and that the iPhone is the best instance of that," added Kleiner Perkins partner Matt Murphy, who will manage the fund.

(Additional reporting by Duncan Martell in San Francisco; editing by Jeffrey Benkoe/Andre Grenon)

Copyright 2008 Reuters

[Powerbook]

That's a freaking cool and also logical business idea: :-)

--
Kleiner Perkins Caufield & Byers Launches $100 Million iFund for iPhone Application Developers

MENLO PARK, California, March 6, 2008 – Kleiner Perkins Caufield & Byers (KPCB) today announced the launch of the iFund with $100 million in venture capital to invest in companies developing applications and services for Apple's innovative iPhone and iPod touch. The iFund, managed by KPCB, will be invested in companies with market-changing ideas and products that extend the revolutionary new iPhone and iPod touch platform. Apple will provide KPCB with market insight and support.

"A revolutionary new platform is a rare and prized opportunity for entrepreneurs, and that's exactly what Apple has created with iPhone and iPod touch," said John Doerr, Partner at Kleiner Perkins Caufield & Byers. "We think several significant new companies will emerge as this new platform evolves, and the iFund will empower them to realize their full potential."

"Developers are already bursting with ideas for the iPhone and iPod touch, and now they have the chance to turn those ideas into great companies with the help of world-class venture capitalists," said Steve Jobs, Apple's CEO. "We can't wait to start working with Kleiner Perkins and the companies they fund through this new initiative."

The iFund will be led by KPCB partner Matt Murphy in collaboration with partners John Doerr, Bill Joy, Randy Komisar, Ted Schlein, Chi-Hua Chien and Ellen Pao. The initiative will be agnostic to stage and size of investment with a focus on areas including location based services, social networking, mCommerce, communication, and entertainment. The iFund will seek to fund entrepreneurs pursuing transformative ideas with the potential to become standalone, public companies. In addition to providing capital, KPCB will assist with company-building expertise, business development relationships and access to its vast network of talented entrepreneurs.

Since its founding in 1972, Kleiner Perkins Caufield & Byers has backed entrepreneurs in over 500 ventures, including AOL, Amazon.com, Citrix, Compaq Computer, Electronic Arts, Genentech, Genomic Health, Google, Intuit, Juniper Networks, Netscape, Lotus, Sun Microsystems, Symantec, Verisign and Xilinx. KPCB portfolio companies employ more than 250,000 people. More than 150 of the firm's portfolio companies have gone public. Many other ventures have achieved success through mergers and acquisitions. KPCB has been an active investor in mobile ventures with over 20 portfolio companies in the sector. Current portfolio companies including Pelago, Dash, GOGII, and Pinger will collaborate closely with the iFund initiative.

[Eug]

Yes, good idea. $100 million is a great kickstart to the platform for 3rd party developers, but doesn't hurt Apple's cash reserves too much.

BTW, AAPL is up 5% so far today. Why? The markets are good, but not that good, and this $100 million kickstart was announced several sessions ago.

[Eriamjh]

I think this would be a nice perpetual thread regarding owners of AAPL stock.

I have noticed the trend of AAPL's price running up then dropping right after a quarterly results announcement. The next one is tomorrow, April 23, 2008, at 5PM EST. I mistakenly thought it was today, so I sold half of my stock.

What a break! It just dropped 4.5% or $7.96 a share. I plan on rebuying it back in about 2-3 days AFTER the quarterly earnings report in case it drops more to make a quick few hundred. I don't day trade, but I can see a quick sell and re-buy as beneficial.

If it jumps up above my buy price, I still made a good amount on it so I'm not losing anything.

Anyone else playing with a little AAPL?

[olePigeon]

I'm too poor to buy any more stock. I hope they split, soon. I wanna get in on the action.

[Eug]

I sold a bunch last week at $159+. Then I sold a bunch more yesterday at $167+. After the run up, I chickened out waiting for the earnings report, and I'm glad I did.

I was considering keeping the stock until either just before the report, or else after, but then a whole bunch of analysts decided to up their estimates, which sent the stock way higher. I figured that it'd be that much tougher to beat those new estimates, so AAPL was primed for a drop at the earnings report.

Well, I figured $167 on Monday was Good Enough so I sold, thinking it might see resistance at $169.99 anyway. Lucky guess. It topped out at $168.50, and closed at $168.16... and then dropped from there today.

However, even if it drops to $150ish, I'm not that interested in buying again. Maybe I will buy if it goes way below that. I bought last time at $156+... only to see it drop to below $120 before it finally bounced back. That was quite the rollercoaster ride.

[Nodnarb]

Yeah... I got in this time around at $130 and was considering getting out yesterday for a bit... I didn't, and I'm glad.

yea, it took a hit today, but it pretty much only negated what happened yesterday.

I think the earnings report will be a positive.
And if not, I think within 6 months it'll be back up to $200 regardless of earnings report tomorrow, so I'm not too worried. (OK, I'm a little worried!)

[Eug]

Earnings WILL be positive. There is absolutely no doubt about that. The "problem" is that Apple sandbags its guidance every time. Last time it bit AAPL investors, because they were a little too conservative which was what brought AAPL way, way down after the call, despite the fact their earnings were the highest EVER.

This time around, the analysts (like they always do) gave more optimistic estimates than Apple... but then significantly upgraded those estimates very recently. Part of the current pricing factors that in. The problem is that expectations are now so high, there is also a strong risk that ANY less than stellar aspect to the earnings or guidance could cause a large drop. I wasn't willing to risk that, especially since I wasn't planning on keeping my stock for the long term.

But then again, it could go way up tomorrow too. And if you're going long, much of the above may be irrelevant to you.

[Nodnarb]

Originally Posted by Eug 

Earnings WILL be positive. There is absolutely no doubt about that.

Oh, I know. I meant I think it'll be positive for the stock. (even though as you say it depends a lot on their guidance for next quarter).

Originally Posted by Eug 

The "problem" is that Apple sandbags its guidance every time. Last time it bit AAPL investors, because they were a little too conservative which was what brought AAPL way, way down after the call, despite the fact their earnings were the highest EVER.

This time around, the analysts (like they always do) gave more optimistic estimates than Apple... but then significantly upgraded those estimates very recently. Part of the current pricing factors that in. The problem is that expectations are now so high, there is also a strong risk that ANY less than stellar aspect to the earnings or guidance could cause a large drop. I wasn't willing to risk that, especially since I wasn't planning on keeping my stock for the long term.

But then again, it could go way up tomorrow too. And if you're going long, much of the above may be irrelevant to you.

I agree with what you're saying, and I was considering playing it like you. However, 3 years ago I got in the stock at $15 and sold at $25, thinking I had made a huge profit (in like 3 months). I promised myself this time that I think AAPL has long term growth, in the 5+ year range. I'm not going to let myself touch it till then.

It'll certainly be interesting to hear the conference call tonight (the first one I'll listen to in 2+ years since I'm now a stockholder again!).

[Eug]

So, AAPL closed today at $162.89, and is up a little bit after hours in advance of the earnings call.

I'm leaning towards a drop to say $155ish after the call, but it could go the opposite direction to $170 or more. Or it could do not much at all.

IOW, I don't have a clue.

P.S. Apple's purchase of P.A. Semi didn't seem to do that much to AAPL today.

[Nodnarb]

Crap.

Shoulda taken your advice and taken it out last week and held off for a week or so, then put it back in!

Already down over 4% to about $156 after hours.

[Eug]

Well, the good news is that it bounced right back again after going down to $156 or whatever. (I wasn't watching it.) So, it essentially went nowhere after-hours, after all was said and done. The close was at $162.89, and AH it ended up at $162.31, down 0.36% from the close.

I'm still glad I sold though, considering I did so at $167.02 (which is 3% higher). It may hit that again quickly however, for those of you holding onto your stock.

If it does drop again down to below $130ish, maybe I'll jump back in, but right now I'm uncomfortable with the stock. I'm with Shaw Wu, and his target price of $175 and his rating of neutral. It may eventually go up, but I think I'll stick this cash into my mortgage instead when I get the chance.

EDIT:

Originally Posted by Eug 

So, AAPL closed today at $162.89, and is up a little bit after hours in advance of the earnings call.

I'm leaning towards a drop to say $155ish after the call, but it could go the opposite direction to $170 or more. Or it could do not much at all.

Heh. It looks like I managed to be sort of right on all counts. I'm told that after hours it was $155ish at bottom, $170ish at top, and then it finally settled at near close at $162ish.

[Eriamjh]

The post-announcement stock-ride has been interesting. The market does not appear to know how to take the data. First AAPL was up then down, then back to what it closed at during after-hours trading. Mac computer sales are way up and will help drive profits in the future, but iPod sales are flattening. I think that's why margins were down (although Apple reported increased iTunes sales hence lower margins).

I can't believe that the number one music retailer barely makes money on it.

I am going to sit back and see what happens today before I put in an order to buy more (perhaps at a limit price of $140-150).

[Nodnarb]

Originally Posted by Eug 

Well, the good news is that it bounced right back again after going down to $156 or whatever. (I wasn't watching it.) So, it essentially went nowhere after-hours, after all was said and done. The close was at $162.89, and AH it ended up at $162.31, down 0.36% from the close.

Yeah, my last post from just when I saw it down $2+, and it looked like it kept going down. Just checked it in before hours, and looks like it's headed up now. Who knows, I'm glad I'm still holding, I think by the end of the year it'll be way up from where it is now. I hope! You definitely made a nice profit though, and it's always smart to sell while your ahead. I most likely would have sold too if I didn't get burned so badly last time by selling too soon!

Originally Posted by Eug 

EDIT:

Heh. It looks like I managed to be sort of right on all counts. I'm told that after hours it was $155ish at bottom, $170ish at top, and then it finally settled at near close at $162ish.

Well when you guess every possibility, it's sort of hard to be wrong!

[Eug]

resistance at $169.99

So that resistance was seen today. Peaked at $169.98. We'll see if it breaks thru soon.

Good that you guys kept the stock anyway. It seems to have recovered nicely and very quickly.

[G4ME]

In one of my classes, every student chose a stock at the beginning of the semester and if at the end of the semester they were up more than 3% they would get an additional 3 points on their final grade. I chose AAPL, the buy was around 132, the last day of class is next Tuesday, needless to say I have my fingers crossed it won't nose dive from now till then.

Ohh and its also nice to see my portfolio climb as well.

[Nodnarb]

Well G4ME, I think it's safe to say you got those points!

I'm glad I didn't sell when I was considering... up to about ~$178 today before noon... I wonder if we'll see the same resistance at $180 there was at $170

[GSixZero]

Originally Posted by G4ME 

In one of my classes, every student chose a stock at the beginning of the semester and if at the end of the semester they were up more than 3% they would get an additional 3 points on their final grade. I chose AAPL, the buy was around 132, the last day of class is next Tuesday, needless to say I have my fingers crossed it won't nose dive from now till then.

Ohh and its also nice to see my portfolio climb as well.

I think you've got some head room. It would take some pretty nasty news to cut apple down to 136 in a week.

[Nodnarb]

Just made a call to sell at ~$180.

Got in at $130.

I'm happy, although I do think we'll eventually see $200 again. I just didn't want to get greedy and potentially lose the great gains I've made in only the past few months.

[Eug]

Sweet. $50 PROFIT a share ain't too shabby.

[Eriamjh]

I bought at $95, sold half at $167. Now it is up to $181 and could still rise.
I plan on selling out at $200, but who knows?

[Lateralus]

I think I'll take my leave once it hits a new 52w high.

[Eug]

Originally Posted by Lateralus 

I think I'll take my leave once it hits a new 52w high.

So, would you sell only at say $202.97? Or would you consider selling at $199.98? Cuz I wonder if there might just be a lot of sell orders in that $199+ price range. Anyways, my original plan was to sell at $180, but I didn't have the intestinal fortitude to wait it out, and now it's over $184.

BTW, as we all know, AAPL is awash in cash. I didn't realize how much it was when compared to other companies though. Apple is #2 in the tech industry for cash:

[Eriamjh]

Growth drives up stock prices. Apple can have all the cash in the world, but if an analyst predicts falt iMac sales or decreasing iPod sales, the stock price will nosedive.

The new 3G iPhone will likely drive up the price even higher. Depending on expectations (a key word), the stock will head up or down depending on reception and predictions. As soon as sales are announced (at the end of the quarter), it could dump again.

You can never lose when you sell a stock that you made money on. It is not really a "bad decision" to sell when it could go up more. You made your profit, now enjoy it.

[GSixZero]

More interesting (IMO) is that Apple has more cash per dollar of Market Cap than any of those companies.

[Eriamjh]

Day of iPhone 3G announcement: AAPL down $4.03
day after iPhone 3G announcement: AAPL up $4.03
Currently at $185.64

[Eug]

AAPL is in a freefall today. Down $5.43 (3%) to $175.38.

P.S. I'm 1 for 2 for my other predictions:

I predicted a significant fall from $1000 for gold. Check.
I also predicted a significant fall from $125 for oil. Nope.

[Eug]

AAPL closed today down 4.2% (-$7.55) to $173.26. (It was down to as low as $171.20 near the end of the day.)

After hours it's now below $173.

[Eriamjh]

Originally Posted by Eug 

AAPL closed today down 4.2% (-$7.55) to $173.26. (It was down to as low as $171.20 near the end of the day.)

After hours it's now below $173.

Does anyone know why? Is the subsidizing of the iPhone that investors fear? Did the 3G finally settle in (not impressed)?

[Eug]

Originally Posted by Eriamjh 

Does anyone know why? Is the subsidizing of the iPhone that investors fear? Did the 3G finally settle in (not impressed)?

No idea. There was an article today about Apple's shift to volume sales though.

After hours AAPL went to $171.95. Ouch.



It just goes to show you how volatile AAPL can be. Bring it to $120 again and maybe I'll buy again.

[jokell82]

Originally Posted by Eriamjh 

Does anyone know why? Is the subsidizing of the iPhone that investors fear? Did the 3G finally settle in (not impressed)?

It's because of the questions of Steve's health. Yesterday when I checked Google it had a news story about how Steve was looking frail, and as soon as that was posted the stock had a HUGE drop.

Looks like a good time to buy if you ask me.

[Powerbook]

This is pathetic.
Steve is part of a team and not even a very good teamplayer...

PB.

[jokell82]

Originally Posted by Powerbook 

This is pathetic.
Steve is part of a team and not even a very good teamplayer...

PB.

The perception is that with Steve gone so is Apple, though.

[Powerbook]

Originally Posted by jokell82 

The perception is that with Steve gone so is Apple, though.

I know, I know. A few cowards cry it, a thousand anchors, moderators, "news" people echo it, a million mindless lemmings dump their shares. Bah.

PB.

[el chupacabra]

sounds like somebody lost some money. I don't know if follow Cramer or mad money but people like him are probably part of the reason the stock has been so high to begin with. He has said he is always with aapl... as long as steve is heading the company....and when steve is gone cramer gone.

there has been lots of discussion about share price vs. how much longer sj will be with apple, even before the articles about his health came out so this is expected.

oh and ps. welcome to the stock market the worlds largest mob ruled casino!

[Lateralus]

Cramer is a moron.

He was hyping AAPL @ $200. But when it tanked to $115 with no justification, he wouldn't touch it with a 10 foot pole. And then after it had marched its way back up he got back on the wagon.

How is a stock a buy at $200 but a disease at $115 after being brought down on panicked selling?

Any investor worth his beans knows to buy stocks that are being flushed because of fear and not because of actual numbers. Cramer somehow doesn't.

And he's done this with more stocks than just AAPL.

[jokell82]

He was also hyping up Bear Sterns not too long ago. Cramer is an idiot.

[Powerbook]

Originally Posted by el chupacabra 

sounds like somebody lost some money.

Well not me, I'm invested for quite some time. My _virtual_ winnings took some hard hit though...

Originally Posted by el chupacabra 

there has been lots of discussion about share price vs. how much longer sj will be with apple, even before the articles about his health came out so this is expected.

"I must have missed 60 minutes..." Not that expected, for me the impact would have been logically a long-term one. If Steve is run over by a dump truck tomorrow, everything will sell as normal. But his mojo wouldn't influence the "next big thing(tm)"

PB.

[Powerbook]

+ 4.95% today... I bet Steve was seen weightlifting and kicking around African-Amaracan's in Venice Beach?

PB.

[Arkham_c]

I bought $1000 worth at $13.16 a share. I still own it, so that's a 1,252.14% gain. Next time it breaks $200 though I am gonna let it go. I think one of these days Steve's gonna keel over and die and it's going to lose 50% of its value in 24 hours for no good reason.

[Eug]

Originally Posted by Eug 

After hours AAPL went to $171.95. Ouch.



It just goes to show you how volatile AAPL can be. Bring it to $120 again and maybe I'll buy again.

AAPL dropped below $170 this afternoon. Let's see if it works itself back over that psychological barrier at the close. It's currently at $169.60.

Originally Posted by Arkham_c 

I bought $1000 worth at $13.16 a share. I still own it, so that's a 1,252.14% gain. Next time it breaks $200 though I am gonna let it go. I think one of these days Steve's gonna keel over and die and it's going to lose 50% of its value in 24 hours for no good reason.

That's pretty sweet. Sounds like a good plan. That's a nice $14000 profit on a $1000 investment.

P.S. Your math doesn't seem quite right.

$200-13.16 = $186.84 gain = 1420% gain (unless you're subtracting brokerage fees from that).

[Eug]

It's now $149.70, down 10% from close today.

Yet another sandbagged earnings guidance is to blame.

[jokell82]

http://bullcross.blogspot.com/2008/0...pation-of.html

Wall Street sucks. That was a fantastic earnings report. I should have expected the dip, though...

[el chupacabra]

nice! Just unloaded my puts. Maybe I need some new ones though...

[Anand]

I bought Apple at $6 a share (split adjusted) so I am still doing well. However, I wish I had a million buck to invest in Apple. I would buy right after the earnings report and sell in a third into the quarter. Apple stock has been doing this for yonks. Watch, Apple will be back in the $170 range by September.

[Apemanblues]

When I was 14 I only had the change in my pockets and that went on chocolate mice.

Good mice though. mmmm

[Eriamjh]

Pummeled last night. $149 and change. I thought it was a mistake to sell half of what I had at $169, but it looks like it wasn't. I think it's time to re-up, though.

Update: I'm back in at $148.90. I had a limit order in for the last two months since I bailed at $169. I've already made a few bucks in 3 hours.

4PM Update: AAPL closed at $162.02, which means I just made $13.12 a share in 9 hours. If only I sold it.