360° Coverage : Apple Downgraded Over Moral Concerns. Cantor Says Suppliers Had...

2 Updates
Apple Downgraded Over Moral Concerns. Cantor Says Suppliers Had A Better Than Normal December
Photo Credit: Forbes Business

Apple Downgraded Over Moral Concerns. Cantor Says Suppliers Had A Better Than Normal December

Jan 6 2014, 1:01pm CST | by

Apple was downgraded from Hold to Sell by Standpoint Research based on moral reasons revolving around how much Apple’s suppliers pay their employees. On the other had Brian White, Cantor Fitzgerald’...

Filed under: news

 
 
 

41 weeks ago

Apple Downgraded Over Moral Concerns. Cantor Says Suppliers Had A Better Than Normal December

Jan 6 2014, 1:01pm CST | by

Apple was downgraded from Hold to Sell by Standpoint Research based on moral reasons revolving around how much Apple’s suppliers pay their employees. On the other had Brian White, Cantor Fitzgerald’s Apple analyst, says his preliminary Apple Barometer which tracks the company’s suppliers had a better than normal December. (Note that my family and I own Apple shares).

One of the few times I have seen moral reasons for a downgrade

Standpoint Research analyst Ronnie Moas wrote “For Apple Computers to pay their workers $2 an hour while they have $150 billion in the bank is nothing short of obscene. They have workers who are doing back-breaking and eye-burning work in depressed states of mind and in many instances have already committed suicide. Instead of treating their employees like human beings, they are treated like animals. If it were not for their employees, Apple would not be where it is today. But instead of giving these people a better life, they give these people the bare minimum and defend this action with the argument that the wage is higher than the average there and in-line with what their competitors are paying.”

While it is commendable for one to stick to their beliefs I don’t think it will have much of an affect on investors buying or holding the shares.

Note that on August 2 last year Standpoint downgraded Apple (price of $462) from Buy to Hold due to the company not finishing off any of its competitors and that its market cap would trend back towards $300 billion (about a $333 stock price).

Standpoint wrote, “Back in September 2012 the share price hit $700. It looked as though they were going to knock out their competitors and maybe justify that share price and market capitalization. The problem is that they knocked a few competitors down … BBRY, NOK, HPQ, DELL, Samsung … but never knocked anyone out … big difference…My guess is that Apple eventually will come back towards the pack ($300 billion) as opposed to separating itself further from the pack. $700/share last year was probably as good as it will ever get for Apple. There was an over-reaction in April when shares dropped below $400 and I got what I was looking for … a 15%-20% bounce off that over-reaction low point.”

Preliminary Apple Barometer saw sales rise more than 2x the average

Over the past 8 years the Apple suppliers that White tracks have seen sales rise 13% from the September quarter to the December quarter. With over 95% of the sales now reported for the month of December he estimates that there was a 31% increase this year for the quarter and that this will be the second best quarterly performance of the past nine years.

In early December White estimated that if the suppliers had their typical 10% month over month growth then the quarter would grow 28% vs. the previous one. For the quarter he is projecting Apple to generate revenue of $58.6 billion and EPS of $14.31 vs. the Street at $57.3 billion and $14.05, respectively.

The stock has bounced back nicely today

The stock had closed just above its 50 day moving average of $539.72 on Friday. Initially this morning it was down almost $7 and hit a low of $533.60 before bouncing back to positive territory. If the stock closes at $540 or above that would be a positive test of the 50 day moving average.

Source: StockCharts.com

Follow me on Twitter @sandhillinsight. You can find my other Forbes posts here.

Source: Forbes Business

 
Update
2

7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the d ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

US ready to cooperate with Cuba in Ebola fight
Washington, Oct 22 (IANS/EFE) The US is ready to cooperate with Cuba in the international fight against Ebola in West Africa, a spokesperson for the US State Department confirmed to Spanish news agency Efe.
 
 
When Ethiopians joined hands with Indians to celebrate Diwali
Addis Ababa, Oct 22 (IANS) This year in Ethiopia, the celebration of Diwali, the Indian festival of lights, started early in a unique way with many new participants, both Indian and Ethiopian.
 
 
OPEC daily basket price closes lower
Vienna, Oct 22 (IANS/WAM) The basket of 12 crude oils of the Organisation of Petroleum Exporting Countries (OPEC) closed at $82.09 a barrel Tuesday compared to $82.37 Monday, the OPEC Secretariat said.
 
 
Marital woes can make you fat
New York, Oct 22 (IANS) If you have a history of depression, picking up fights with your better half could increase the risk of obesity by altering how the body processes high-fat foods, says a new research.
 
 
 

Latest from the Network

European Champions League standings
Paris, Oct 22 (IANS) Following are the European Champions League standings for Groups E to H after Tuesday's matches (tabulated under matches played, won, drawn, lost, goals for, against, points), according to Xinhua...
Read more on Sport Balla
 
Rogerio set to break Giggs world record
Rio de Janeiro, Oct 22 (IANS) Sao Paulo goalkeeper Rogerio Ceni is one victory away from earning his fourth Guinness World Record by eclipsing a mark held by Manchester United legend Ryan Giggs. The 41-year-old will...
Read more on Sport Balla
 
Ryan Reynolds can't keep his hands off Blake Lively
Ryan Reynolds was ''really sweet'' to Blake Lively at the Angel City Ball. The couple, who got married in September 2012, made their first red carpet appearance together in New York City on Monday night (10.20.14) since...
Read more on Celebrity Balla
 
Kris Jenner doesn't know who Bruce Jenner is dating
Kris Jenner has ''no idea'' whether Bruce Jenner is dating her best friend. The 58-year-old reality TV star, who split from the Olympic gold medallist last October after 23 years of marriage, claims she doesn't know if...
Read more on Celebrity Balla
 
When Rihanna dressed like 'Harry Potter'
New York, Oct 22 (IANS) Singer Rihanna was spotted here in a Harry Potter style costume. She wore the wizard-like get-up while heading for a business meal here Monday, reports mirror.co.uk. The 26-year-old combined a...
Read more on Celebrity Balla
 
Germany raises humanitarian aid to Iraq
Berlin, Oct 22 (IANS) Germany has pledged a further 20 million euros (about 25.5 million dollars) in humanitarian aid to Iraq, the foreign ministry said in a statement Tuesday. The additional funds are immediately...
Read more on Politics Balla
 
India calls on Israel, Palestine to resume peace process
United Nations, Oct 22 (IANS) India has called upon Israelis and Palestinians to resume the peace process as "dialogue remains the only viable option" to address the issues confronting the region. In a brief statement...
Read more on Politics Balla
 
Airstrikes help ground forces fight IS: Pentagon
Washington, Oct 22 (IANS) Kurdish forces are in control of the majority of the Syrian city of Kobane despite efforts by the Islamic State (IS) to take the town, a spokesperson for US defence department said Tuesday....
Read more on Politics Balla
 
Palestine, Israel urged at UN to halt unilateral initiatives
United Nations, Oct 22 (IANS) UN Secretary-General Ban Ki- moon Tuesday called on Palestine and Israel to overcome differences and halt unilateral initiatives that fuel mistrust, so as to pursue long-term stability in...
Read more on Politics Balla
 
China urges Israel to create conditions for peace
United Nations, Oct 22 (IANS) Chinese government has called on Israel to create necessary conditions for the resumption of peace talks with Palestine. At an open debate of the Security Council on the situation of the...
Read more on Politics Balla