Monday, September 11, 2006

Calls of Note Part 2

- Piper Jaffray notes they continue to expect Apple (NASDAQ:AAPL) will announce its iPhone sometime in the next 4-6 months. That said, they have not seen any concrete evidence that the product is near completion or launch. There have been multiple indications that Apple is planning to introduce an iPhone, including: 1) registering the domain name in 1999; 2) trademarking the name "Mobile Me" in Jan-06; 3) comments from an Asian news source in May- 06 reporting that Softbank, a Japanese cell phone service provider, had reached an agreement with Apple to jointly develop cell phones; and 4) CFO comments related to music phone market on June quarter conference call. Also, given music enabled handsets are being introduced by potential handset maker competitors (ex: LG Chocolate), Apple will likely need to get in the game fairly soon to avoid missing the early adopters.

Assuming Apple ships its iPhone early in CY07, at Macworld-07 or a special event, the firm expects the company will sell 8.0m-12.0m iPhones in the full calendar year. Firm believes the most likely iPhone buyers would be those who have previously owned a higher ASP HDD iPod
Assuming Apple ships the iPhone at Macworld-07, their sensitivity analysis points to between 6%-10% upside to Street CY07 EPS.

Maintains Outperform and $99 tgt.

Notablecalls: Not actionable but good to know category. How to play this one once the news is out that AAPL indeed is coming out with a cellie? Buy the suppliers!

- ThinkEquity is positive on Zoltek Companies (NASDAQ:ZOLT) providing an update to their analysis of estimated carbon fiber demand from Vestas, Zoltek's largest customer. Firm continues to believe that demand for carbon fiber from the wind industry is solid and increasing. This helps to maintain confidence in the demand for Zoltek's product and they maintain positive view on the company and the stock.

Three key takeaways from the analysis:

1. Carbon fiber-based turbine orders continue to grow at a healthy pace at Vestas. Since August 2005, cumulative carbon fiber-based turbines orders have grown to 587 units.

2. Carbon fiber orders have increased as a percentage of total orders. Since August 2005, carbon fiber orders have increased to 24% of total orders. Firm believes that the rapid adoption of carbon fiber turbines reflects a trend toward using more efficient materials in the wind industry, allowing for larger but lighter turbines.

3. Vestas orders to Zoltek should be significant. On a cumulative basis, they estimate that Vestas has received orders which would represent $37M in carbon fiber sales to Zoltek.

Reiterates Buy and $40 Price Target.

Notablecalls: I don't dare to call this one actionable but ZOLT's surely a mover.

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