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Date: October 16, 2012
Analyst Name: Fausto Guillén Aguilar Jr.
CIF Stock Recommendation Report (Fall 2012)
Company Name and Ticker: Apple Inc. AAPL
Section (A) Summary
Recommendation Buy: Yes Target Price: $740 Stop-Loss Price: $585
Sector: Technology Industry: Computer Systems
Market Cap (in Billions): $600,792.88
# of Shrs. O/S (in Millions): 937.41
Current Price: $649.79 52 WK Hi: $705.07
52 WK Low: $363.32 EBO Valuation: $758.22
Morningstar (MS) Fair Value Est.: $770.00
MS FV Uncertainty: Medium
MS Consider Buying: $539.00
MS Consider Selling: $1039.50
EPS (TTM): 42.54 EPS (FY1): 53.44 EPS (FY2): n/a MS Star Rating: 4.0
Next Fiscal Yr. End ”Year”: 13 “Month”: Sep
Last Fiscal Qtr. End: Dec 12 Less Than 8 WK: N
If Less Than 8 WK, next Earnings Ann. Date: 25-Oct-12
Analyst Consensus Recommendation: Outperform
Forward P/E: 12.16 Mean LT Growth: 21.81 PEG: 0.56 Beta: 1.20
% Inst. Ownership: 67.84%
Inst. Ownership- Net Buy: N
Short Interest Ratio: 1.0 Short as % of Float: n/a
Ratio Analysis Company Industry Sector
P/E (TTM) 15.07 12.31 19.74
P/S (TTM) 4.04 1.07 3.57
P/B (MRQ) 5.38 2.20 3.72
P/CF (TTM) 13.98 10.92 13.31
Dividend Yield 1.65 2.42 1.94
Total Debt/Equity (MRQ) 0.00 52.62 18.08
Net Profit Margin (TTM) 26.97 6.34 13.88
ROA (TTM) 29.77 8.53 14.34
ROE (TTM) 44.32 15.94 20.36
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Investment Thesis I believe Apple Inc will be a great investment for our Cougar Investment Fund portfolio, because according to various analysts’ opinions and my research – the stock price will go up. Furthermore, I will explain additional reasons on why I believe we should buy Apple Inc shares. - Low-end of the range The current price has dropped these last few days. The last two times the share went this low (June 2011 & May 2012), the price went up 30%+ shortly after. Apple Inc shares should go up 40-60% by Fall of 2013. - Innovation Apple expects to sell 50-60 million new iPhone 5 smart phones, which will drive up earning per share. The new mini iPad, MacBook Pro, and iMac, will be coming out within the next couple of weeks. People who sync there Apple products with iCloud service normally will continue using Apple products – higher switching costs. - Financial Health Apple has no debt and is expected to have a 45% revenue growth along with a 21% sales growth in the coming fiscal year.
Summary Provide brief summary of your analysis in each section that follows
Company Profile: Apple Inc is an American company that designs, manufactures, and markets personal
computers and media devices. Additionally, Apple Inc sells software and services.
Fundamental Valuation: The implied price today, using the full twelve year forecasting horizon is $758.22. I believe the company can keep growing at the long-term growth rate for up to seven years.
Relative Valuation: The valuation was very mixed and Apple Inc continued to be the leader among its
competitors.
Revenue and Earnings Estimates: Revenue and earnings estimates have been fairly accurate. Actual revenue and earnings have been steadily growing.
Analyst Recommendations: The majorities of the
recommendations are buying and secondly outperform. With a consensus recommendation at outperform.
Institutional Ownership: The institutional ownership of Apple Inc is between 67-68%. Additionally, there are none that own more than 5% of Apple Inc.
Short Interest: The short interest ratio has been at
1.0% or very close to 1.0% for the last couple of years.
Stock Price Chart: The stock for Apple Inc has been increasing at a good pace for the last five years. The price of the stock took a small dip in early 2009; however, it shot back up shortly after.
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Section (B) Company Profile (two pages maximum)
Company Summary
Apple Inc. (Apple) was incorporate on January 3, 1977. (www.reuters.com) Apple offers media
devices, personal computers, mobile communication, software, and third party applications.
Some of the products and service offered by Apple are the iPod, iPhone, iMac, consumer
software, iPad, Apple TV, and iCloud.
Apple Inc. top competitors are:
Google Microsoft Corporation
Hewlett-Packard Company Research in Motion Limited
Apple Inc. is a focus-differentiated company, which means they produce products that create
value to the consumer. Therefore, Apple Inc can charge a premium for their products and consumers will pay the higher price. Due to Apple’s core competencies and resources, it gains
competitive advantage by continue to innovate new products and update current ones. Ultimately, Apple is a very known brand and key player in the Technology sector. If they maintain their competitive advantage, they will continue to earn high revenue and earnings for
a long time.
Revenue and Earnings History
This information is available in Reuters.com, “Financials” tab. Copy/paste the quarterly
revenue and earnings per share numbers for the most recent three years. Add the numbers
over four fiscal quarters to get annual revenue and earnings. For the current fiscal year, go
ahead add up as many quarters as are available. NOTE: revenue numbers are “in millions”.
Discuss any pattern in revenue and earnings (e.g., increasing year over year; seasonal; etc.)
REVENUE
Periods 2010 2011 2012
December 15683.0 26741.0 46333.0
March 13499.0 24667.0 39186.0
June 15700.0 28571.0 35023.0
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September 20343.0 28270.0
Note: Units in Millions of U.S. Dollars
EARNINGS PER SHARE
Periods 2010 2011 2012
December 3.67261 6.43409 13.8747
March 3.33088 6.39675 12.2998
June 3.5078 7.79262 9.31727
September 4.63812 7.04937
Note: Units in U.S. Dollars
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Section (C) Fundamental Valuation (EBO)
Include the following here:
Copy/paste completed Fundamental Valuation (EBO) Spreadsheet
Inputs (provide below input values used in your analysis)
EPS forecasts (FY1 & FY2): 44.43 and 53.44
Long-term growth rate: 21.81%
Book value /share (along with book value and number of shares outstanding):
Book value:
# of shares outstanding:
Book value / share: 82.48
Dividend payout ratio: 6.19%
AAPL PARAMETERS FY1 FY2 Ltg
EPS Fore casts 44.43 53.44 21.81% Mode l 1: 12-ye ar fore casting horiz on (T=12).
Book value /share (last fye ) 82.45 and a 7-ye ar growth pe riod.
Discount Rate 11.51%
Divide nd Payout Ratio (POR) 6.19% Please download and save this template to your own storage device
Ne xt Fsc Ye ar e nd 2012 You only ne e d to input value s to ce lls highlighte d in "ye llow"
Curre nt Fsc Mth (1 to 12) 12 The re st o f the spre adshe e t is calculate d automatically
Targe t ROE (industry avg .) 17.46% Ple ase re ad "Guide line s_for_Fundame ntalValuation_ProfLe e _Spre adshe e t" file care fully
Ye ar 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Long-term EPS Growth Rate (Ltg) 0.2181 0.2181 0.2181 0.2181 0.2181
Forecasted EPS 44.43 53.44 65.10 79.29 96.59 117.65 143.31
Beg. of year BV/Shr 82.450 124.130 174.262 235.328 309.712 400.320 510.689
Implied ROE 0.431 0.374 0.337 0.312 0.294 0.281
ROE (Beg. ROE, from EPS forecasts) 0.539 0.431 0.374 0.337 0.312 0.294 0.281 0.259 0.238 0.217 0.196 0.175
Abnormal ROE (ROE-k) 0.424 0.315 0.258 0.222 0.197 0.179 0.166 0.144 0.123 0.102 0.081 0.060
growth rate for B (1-POR)*(ROEt-1) 0.000 0.506 0.404 0.350 0.316 0.293 0.276 0.263 0.243 0.223 0.204 0.184
Compounded growth 1.000 1.506 2.114 2.854 3.756 4.855 6.194 7.824 9.729 11.903 14.326 16.957
growth*AROE 0.424 0.475 0.546 0.633 0.739 0.868 1.025 1.129 1.198 1.213 1.156 1.009
required rate (k) 0.115 0.115 0.115 0.115 0.115 0.115 0.115 0.115 0.115 0.115 0.115 0.115 0.115
Compound discount rate 1.115 1.243 1.387 1.546 1.724 1.923 2.144 2.391 2.666 2.973 3.315 3.696
div. payout rate (k) 0.062
Add to P/B PV(growth*AROE) 0.38 0.38 0.39 0.41 0.43 0.45 0.48 0.47 0.45 0.41 0.35 0.27
Cum P/B 1.38 1.76 2.16 2.57 2.99 3.45 3.92 4.40 4.85 5.25 5.60 5.88
Add: Perpetuity
beyond current yr (Assume this yr's AROE forever) 3.30 3.32 3.42 3.56 3.72 3.92 4.15 4.10 3.90 3.55 3.03 2.37
Total P/B (P/B if we stop est. this period) 4.68 5.08 5.58 6.12 6.72 7.37 8.08 8.50 8.75 8.80 8.63 8.25
Implie d price 430.44 467.04 512.89 562.98 617.70 677.46 742.75 781.50 804.39 808.96 793.69 758.22
Che ck:
Beg. BV/Shr 82.45 124.13 174.26 235.33 309.71 400.32 510.69 645.13 802.13 981.38 1181.17 1398.13
Implied EPS 44.43 53.44 65.10 79.29 96.59 117.65 143.31 167.36 191.08 212.97 231.28 244.11
Implied EPS growth 0.203 0.218 0.218 0.218 0.218 0.218 0.168 0.142 0.115 0.086 0.055
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Next fiscal year end: 2012
Current fiscal month: 12
Target ROE: 17.46%
Output
Above normal growth period chosen: 12 years
EBO valuation (Implied price from the spreadsheet): $758.22
Sensitivity Analysis
EBO valuation would be (you can include more than one scenario in each of the following):
$677.46 if changing above normal growth period to 5 years
$758.22 if changing growth rate from mean (consensus) to the highest estimate 10%
$677.46 if changing growth rate from mean (consensus) to the lowest estimate 9%
$1467.16 if changing discount rate to 8%
$633.21 if changing target ROE to 15%
Section (D) Relative Valuation
Copy/paste your completed relative valuation spreadsheet here
From the top panel
AAPL
Mean FY2
Earnings Estimate Forward Mean LT PEG P/B ROE Value P/S P/CF
Ticker Name Mkt Cap Current Price (next fiscal year) P/E Growth Rate (MRQ) 5 yr ave Ratio TTM TTM
1 GOOG Google 243,495.91$ 744.70$ 16.86$ 44.17 16.86% 2.62 3.76 19.44% 0.19 5.64 18.35
2 HPQ.N Hewlett-Packard Company 27,880.17$ 14.57$ 3.60$ 4.05 2.88% 1.41 0.88 25.95% 0.03 0.23
3 MSFT.O Microsoft Corporation 244,328.41$ 29.49$ 3.30$ 8.94 8.85% 1.01 3.66 40.00% 0.09 3.31 12.25
4 RIMM.OResearch In Motion Limited 4,064.46$ 7.83$ (0.55)$ -14.24 5.00% -2.85 0.43 31.31% 0.01 0.27 3.38
AAPL Apple Inc 600,792.88$ 649.79$ 53.44$ 12.16 21.81% 0.56 5.38 36.21% 0.15 4.04 13.98
Implied Price based on: P/E PEG P/B Value P/S P/CF
1 GOOG Google ######## $3,053.43 $454.13 $845.88 $907.13 $852.91
2 HPQ.N Hewlett-Packard Company $216.28 $1,637.90 $106.29 $148.31 $36.99 $0.00
3 MSFT.O Microsoft Corporation $477.56 $1,176.90 $442.05 $400.17 $532.38 $569.38
4 RIMM.OResearch In Motion Limited ($760.79) ######## $51.93 $60.06 $43.43 $157.10
High ######## $3,053.43 $454.13 $845.88 $907.13 $852.91
Low -$760.79 ######## $51.93 $60.06 $36.99 $0.00
Median $346.92 $1,407.40 $274.17 $274.24 $287.90 $363.24
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Discuss whether your stock and its competitors have very different multiples. Point out if any of
the five stocks have multiple that is far off from the others. Make an attempt to explain why
(you would want to read analyst research report in Morningstar Direct; you should also look for
comments from other financial sites). The discussions should address all of the following
valuation metrics: forward P/E, PEG, P/B (MRQ), P/S (TTM), and P/CF (TTM).
Compare the implied prices derived from various valuation metrics. Also compare those implied
price to the stock’s current price, and 52-week high and low.
From the bottom panel
Discuss the various implied prices of your stock derived from competitors’ (“comparables”)
multiples. How different are the prices derived from the various valuation metrics? Note any
valuation metrics that seem to yield outlier prices and explain why (HINT: is that because that
particular valuation metrics is not very relevant for the industry? Do you best to provide
convincing arguments).
For each valuation metrics, Compare the current price and 52-week high /low of your stock to
the High-low range derived from multiples of its competitors.
Among the valuation metrics analyzed, which ones do you think are most relevant as a
valuation tool for your stock?
Section (E) Revenue and Earnings Estimates
Copy/Paste the “Historical Surprises” Table from Reuters.com, “Analysts” tab (include both
revenue and earnings; make note that revenues might be in “millions”)
Review recent trends in company’s reported revenue and earnings, and discuss whether (1) the
company has a pattern of “surprising” the market with numbers different from analysts’
estimates; (2) Were they positive(actual greater than estimate) or negative (actual less than
estimate) surprises? (3) Were surprises more notable for revenue or earnings? (4) Look up the
stock chart to see how the stock price reacted to the “surprises. NOTE: Reuters does not put
the sign on the surprise. You need to put a “negative” sign when it is a negative surprise.
HISTORICAL SURPRISES
Sales and Profit Figures in US Dollar (USD) Earnings and Dividend Figures in US Dollar (USD)
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Estimates vs Actual Estimate Actual Difference Surprise %
SALES (in millions)
Quarter Ending Jun-12 37,215.90 35,023.00 2,192.88 5.89
Quarter Ending Mar-12 36,808.00 39,186.00 2,377.95 6.46
Quarter Ending Dec-11 39,062.50 46,333.00 7,270.46 18.61
Quarter Ending Sep-11 29,685.50 28,270.00 1,415.55 4.77
Quarter Ending Jun-11 24,960.80 28,571.00 3,610.20 14.46
Earnings (per share)
Quarter Ending Jun-12 10.39 9.32 1.07 10.29
Quarter Ending Mar-12 10.04 12.30 2.26 22.55
Quarter Ending Dec-11 10.16 13.87 3.71 36.46
Quarter Ending Sep-11 7.39 7.05 0.34 4.54
Quarter Ending Jun-11 5.84 7.79 1.95 33.44
Copy/paste the “Consensus Estimates Analysis” Table from Reuters.com, “Analysts” tab
(include both revenue and earnings)
Review the range and the consensus of analysts’ estimates. (1) Calculate the % difference of the
“high” estimate from the consensus (mean); (2) Calculate the % (negative) difference of the
“low” estimate from the consensus; (3) Are the divergent more notable for the current or out-
quarter, FY1 or FY2, revenue or earnings? (4) Note the number of analysts providing LT growth
rate estimate. It that roughly the same as the number of analysts providing revenue and
earnings estimates?
CONSENSUS ESTIMATES ANALYSIS
Sales and Profit Figures in US Dollar (USD)
Earnings and Dividend Figures in US Dollar (USD)
# of Estimates Mean High Low 1 Year
Ago
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SALES (in millions)
Quarter Ending Dec-12 39 54,716.10 59,739.00 49,314.40 41,498.00
Quarter Ending Mar-13 38 47,042.10 56,442.00 40,076.50 35,783.40
Year Ending Sep-12 52 156,777.00 161,978.00 152,300.00 134,955.00
Year Ending Sep-13 52 194,198.00 222,999.00 171,551.00 155,500.00
Earnings (per share)
Quarter Ending Dec-12 40 15.41 18.47 11.69 9.67
Quarter Ending Mar-13 39 13.25 16.52 10.75 8.56
Year Ending Sep-12 55 44.43 46.29 43.48 32.88
Year Ending Sep-13 55 53.44 63.50 42.03 38.04
LT Growth Rate (%) 12 21.81 35.00 15.00 21.25
Copy/paste the “Consensus Estimates Trend” Table from Reuters.com, “Analysts” tab (include
both revenue and earnings)
Review recent trend of analysts’ consensus (mean) estimates on revenue and earnings. (1) Are
the consensus estimates trending up, down, or stay the same? (2) Is the trend more notable for
the near- or out- quarter, FY1 or FY2, revenue or earnings?
CONSENSUS ESTIMATES TREND
Sales and Profit Figures in US Dollar (USD) Earnings and Dividend Figures in US Dollar (USD)
Current 1 Week
Ago 1 Month
Ago 2 Month
Ago 1 Year
Ago
SALES (in millions)
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Quarter Ending Dec-12 54,716.10 54,904.30 54,896.00 54,773.10 41,498.00
Quarter Ending Mar-13 47,042.10 47,002.70 46,524.70 46,574.20 35,783.40
Year Ending Sep-12 156,777.00 156,701.00 155,742.00 155,887.00 134,955.00
Year Ending Sep-13 194,198.00 193,966.00 192,248.00 191,840.00 155,500.00
Earnings (per share)
Quarter Ending Dec-12 15.41 15.43 15.38 15.31 9.67
Quarter Ending Mar-13 13.25 13.17 12.97 12.96 8.56
Quarter Ending Sep-12 44.43 44.42 44.03 44.11 32.88
Quarter Ending Sep-13 53.44 53.37 52.56 52.50 38.04
Copy/paste the “Estimates Revisions Summary” Table from Reuters.com, “Analysts” tab
(include both revenue and earnings)
Review the number of analysts revising up or down their estimates (both revenue and earnings)
in the last and last four weeks. (1) Note whether there are more up or down revisions; (2) are
the revisions predominantly one directional? (3) Any notable difference last week versus last
four weeks, revenue versus earnings?
ESTIMATES REVISIONS SUMMARY
Last Week Last 4 Weeks
Number Of Revisions: Up Down Up Down
Revenue
Quarter Ending Dec-12 1 1 16 9
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Quarter Ending Mar-13 1 1 17 7
Year Ending Sep-12 2 1 31 1
Year Ending Sep-13 2 0 26 6
Earnings
Quarter Ending Dec-12 1 1 14 10
Quarter Ending Mar-13 2 0 19 5
Year Ending Sep-12 2 1 31 2
Year Ending Sep-13 2 0 27 4
You will need to incorporate what you see here with Morningstar’s analyst research report (you
can access Morningstar Direct at the Financial Markets Lab.) and other readings/analysis you
found from various on-line financial sites. Discuss whether you think the company has a good
chance of making or beating analyst consensus estimate, and why. Based on how the stock has
been trading lately, do you think market has already anticipated strong or lackluster financial
outlook from the company?
According to Morningstar report, Apple Inc has to continue innovating new products and
maintain healthy connections with third party partners in order to continue being successful. I
totally agree with this statement. Apple Inc will take out new products next week and is still
busy trying to complete all iPhone 5 orders. In my opinion, Apple’s outlook looks very well and
we should expect the share price to rise.
Section (F) Analysts’ Recommendations
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Copy/paste the “Analyst Recommendations and Revisions” Table from Reuters.com,
“Analysts” tab. NOTE: Make sure you copy the entire table including the “Mean Rating” at the
bottom of the table.
HISTORICAL SURPRISES
Sales and Profit Figures in US Dollar (USD) Earnings and Dividend Figures in US Dollar (USD)
Estimates vs Actual Estimate Actual Difference Surprise %
SALES (in millions)
Quarter Ending Jun-12 37,215.90 35,023.00 2,192.88 5.89
Quarter Ending Mar-12 36,808.00 39,186.00 2,377.95 6.46
Quarter Ending Dec-11 39,062.50 46,333.00 7,270.46 18.61
Quarter Ending Sep-11 29,685.50 28,270.00 1,415.55 4.77
Quarter Ending Jun-11 24,960.80 28,571.00 3,610.20 14.46
Earnings (per share)
Quarter Ending Jun-12 10.39 9.32 1.07 10.29
Quarter Ending Mar-12 10.04 12.30 2.26 22.55
Quarter Ending Dec-11 10.16 13.87 3.71 36.46
Quarter Ending Sep-11 7.39 7.05 0.34 4.54
Quarter Ending Jun-11 5.84 7.79 1.95 33.44
Review the trend of analyst recommendations over the last three months. Is there a notable
change of analyst opinions, turning more bullish or bearish? How many different ratings out
of the five possible ones did the company receive currently, one, two, and three months ago?
Is there a notable trend of opinion convergence or divergence? Is what you see here
consistent to comments in Morningstar analyst’s research report as well as various online
financial sites you had researched on?
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NOTE: On a Five-point scale, Reuters assigns “1” to “Buy”, the most bullish recommendation,
and “5” to “Sell”, the most bearish recommendation. Some other online sites have opposite
scale, with their “1” being the most bearish and “5” being the most bullish recommendations.
After looking at numerous analysts’ recommendation, they are all very constant and alike. They
all recommend a buy and or outperform.
Section (G) Institutional Ownership
Copy/paste the completed “CIF Institutional Ownership” spreadsheet here.
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AAPL
Ownership Activity # of Holders % Beg. Holders Shares % Shares
Shares Outstanding 937,432,843 100.00%
# of Holders/Tot Shares Held 2,395 100.55% 635,954,441 67.84%
# New Positions 19 0.80%
# Closed Positions 6 0.25%
# Increased Positions 131 5.50%
# Decreased Positions 157 6.59%
Beg. Total Inst. Positions 2,382 100.00% 636,396,830 67.89%
# Net Buyers/3 Mo. Net Chg -26 45.49% -442,389 -0.05%
Ownership Information % Outstanding
Top 10 Institutions % Ownership 24.80%
Mutual Fund % Ownership 1.09%
Float % 99.17%
> 5% Ownership
Holder Name % Outstanding Report Date
"5% Ownership Info n/a right now"
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Combine information provided in all three sections to discuss whether (1) institutions, on net
basis, have been increasing or decreasing ownership and how significant, (2) the stock has
sizable institution interests and support, (3) the extent of the (> 5%) owners, and (4) this
could be a bullish or bearish indication of future stock price movement.
1. Institutional ownership has not been decreasing or increasing, but more so staying at around
the same percentage.
2. The stock does have interest and support, close to 70%.
3. None
4. I believe it is bullish, it looks like Apple has support and the future stock price should go up.
Section (H) Short Interest (two pages)
From http://www.nasdaq.com/ (NASDAQ’s website)
Copy/paste or enter the data in the following table. You also need to copy/paste the chart to
the right.
Copy/paste or type the information from “short interest” table. You will start from the most
recent release date, and go back for a year (some stocks may not have data go back for a
year)
Copy/paste the chart to the right of the “short interest” table, immediately follow the table
below
NOTE: You are encouraged to look at the short interest information for two of the companies’
closest competitors. This will help gauge whether the sentiment indicated in the short interest
statistics is company specific or industry-wide.
9/28/2012 15,123,230 18,190,057 1.000000
9/14/2012 14,515,549 17,998,881 1.000000
8/31/2012 13,591,386 15,913,184 1.000000
8/15/2012 13,282,922 10,867,414 1.222271
7/31/2012 11,466,323 16,442,443 1.000000
7/13/2012 12,746,106 15,143,904 1.000000
6/29/2012 12,445,119 12,150,233 1.024270
6/15/2012 15,187,253 15,569,838 1.000000
5/31/2012 14,652,690 20,848,952 1.000000
5/15/2012 11,726,573 16,839,033 1.000000
Settlement Date Short Interest Average Daily # of
Days to cover Shares Volume
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4/30/2012 11,376,018 31,620,103 1.000000
4/13/2012 8,093,467 25,967,822 1.000000
3/30/2012 9,677,286 24,993,323 1.000000
3/15/2012 9,866,671 27,294,979 1.000000
2/29/2012 9,797,118 23,178,150 1.000000
2/15/2012 10,446,497 19,290,748 1.000000
1/31/2012 10,589,404 14,754,114 1.000000
1/13/2012 11,530,052 10,072,631 1.144691
12/30/2011 9,962,590 9,656,582 1.031689
12/15/2011 10,585,807 12,376,325 1.000000
11/30/2011 11,619,638 14,258,821 1.000000
11/15/2011 9,440,115 17,045,332 1.000000
10/31/2011 10,683,440 21,519,252 1.000000
10/14/2011 12,011,234 24,769,126 1.000000
Read more: http://www.nasdaq.com/symbol/aapl/short-interest#ixzz29VAUCSBW
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From http://finance.yahoo.com/
Complete the following table with information from the “share statistics” table.
Avg Vol Avg Vol Shares Float (3 month) (10 day) Outstanding
15,783,100 20,387,400 937.41M 936.74M
Shares Short Short Ratio Short % of Float Shares Short
(as of Sep 28, 2012) (as of Sep 28, 2012) (as of Sep 28, 2012) (prior month)
15.12M 0.90 1.60% 14.52M
Based on the short interest statistics and its recent trend, how is the market sentiment on the
stock? Has the sentiment turned more bullish or bearish over the last year? How about in
more recent month and why?
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Section (I) Stock Charts
A three months price chart
AAPL.0 (TURQOUISE), S&P500 (DARK PURPLE), TECHNOLOGY (RED), GOOG.0 (GREEN), HPQ (PURPLE)
A one year price chart
AAPL.0 (TURQOUISE), S&P500 (DARK PURPLE), TECHNOLOGY (RED), GOOG.0 (GREEN), HPQ (PURPLE)
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A five year price chart
AAPL.0 (TURQOUISE), S&P500 (DARK PURPLE), TECHNOLOGY (RED), GOOG.0 (GREEN), HPQ (PURPLE)
Additional price chart: Max 1992-2012
AAPL.0 (TURQOUISE), S&P500 (DARK PURPLE), TECHNOLOGY (RED), GOOG.0 (GREEN), HPQ (PURPLE)
20
Discuss what you observe from the stock charts. This should include comparing your stock to
competitors, sector, and SP500 over the three different time horizons.
Overall, Apple Inc has done very well against its competitors, the sector, and the SP500. The
only period that looks like Apple did not do so great, is the three-month comparison, but other
that everything else looks good.