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

8 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 workforce of 20,000 ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

8 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 double t ...
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

'Selfie' to cure skin problems
New York, Oct 26 (IANS) If you have a skin problem, taking a selfie of the affected area and sending it to your dermatologist for analysis is a good idea.
 
 
A device to identify tipsiness
New York, Oct 26 (IANS) A device has been launched that lets drivers find out if they are intoxicated before they are nabbed by cops.
 
 
Unearthed: Ancient city ruled by Genghis Khan's heirs
Moscow, Oct 26 (IANS) Remains of a 750-year-old city called Ukek, founded by the descendants of Genghis Khan, has been unearthed along the Volga river in Russia.
 
 
Taiwan eyeing six percent trade growth with India, bullish on Modi
Taipei, Oct 26 (IANS) Bullish on Prime Minister Narendra Modi, Taiwan, which has no diplomatic ties with India, is pitching for duty concessions from India as the island nation aims to boost bilateral trade with a six percent growth by 2015.
 
 
 

Latest from the Network

Second MERS case reported in Qatar
Doha, Oct 23 (IANS) A 43-year-old man in Qatar has tested positive for Middle East Respiratory Syndrome (MERS) in the second confirmed case of the deadly virus in 10 days, media reported Thursday. The patient had...
Read more on Business Balla
 
Two people die in Pakistan bomb blast
Islamabad, Oct 23 (IANS) At least two people were killed and 12 others injured in an explosion that took place in Pakistan's Balochistan province Thursday, media reported. The bomb was planted on a motorcycle, Dawn...
Read more on Politics Balla
 
Trott extends contract with Warwickshire till 2017
London, Oct 23 (IANS) England batsman Jonathan Trott, whose mental issues led to his abrupt departure from last winter's Ashes tour, has confirmed his successful comeback to competitive cricket by signing a new three-...
Read more on Sport Balla
 
Srikanth, Kashyap big movers in BWF rankings
Kuala Lumpur, Oct 23 (IANS) Indian men shuttlers Kidambi Srikanth and Parupalli Kashyap jumped seven places each in the latest Badminton World Federation (BWF) rankings released Thursday while Olympic bronze medallist...
Read more on Sport Balla
 
Alvin Stardust dead
London, Oct 23 (IANS) English singer Alvin Stardust died after a short illness. He was 72. Stardust's manager confirmed the news about his demise Thursday, reports mirror.co.uk. He was recently diagnosed with...
Read more on Celebrity Balla
 
Indian man reunited with family after 40 years
Dubai, Oct 23 (IANS) An Indian man, who had disappeared from his hometown in Kerala nearly 40 years ago, has been found by his family at a hospital in Dubai in the UAE, a newspaper report said. Now in his 60s, Abdulla...
Read more on Politics Balla
 
Srikanth, Kashyap, Saina rise in world rankings
Kala Lumpur, Oct 23 (IANS) Indian men shuttlers Kidambi Srikanth and Parupalli Kashyap jumped seven places each in the latest released Badminton World Federation (BWF) rankings Thursday while Olympic bronze medallist...
Read more on Sport Balla
 
Flintoff signs for Big Bash side Brisbane Heat
Brisbane, Oct 23 (IANS) Former England captain and all-rounder Andrew Flintoff, who retired from international cricket in 2009, Wednesday confirmed that he will play for Brisbane Heat in the Big Bash League (BBL) this...
Read more on Sport Balla
 
OPEC daily basket price falls again
Vienna, Oct 23 (IANS/WAM) The basket of 12 crude oils of the Organization of Petroleum Exporting Countries (OPEC) closed at $81.94 a barrel Wednesday compared to $82.09 Tuesday, the OPEC Secretariat said. The new OPEC...
Read more on Business Balla
 
Lopez to sign multi-million dollar deal?
Los Angeles, Oct 23 (IANS) Singer-actress Jennifer Lopez is reportedly in the final stages of securing a multi-million dollar deal to perform in Las Vegas. The 45-year-old is being offered $350,000 per show at The...
Read more on Celebrity Balla