Tuesday, November 07, 2006

Calls of Note Part 1

- Piper Jaffray comments on Apple Computer (NASDAQ:AAPL) saying that based on their
conversations with Adobe creative professionals, they believe the upcoming release of CS3, which will be the first version of Adobe's Creative Suite that is optimized for Intel-based Macs, will be a catalyst for new Mac sales. Specifically, the firm recently spoke with 50 Adobe customers and found that 24% expect to buy a new Mac within 2 quarters of the release of Adobe's CS3. CS3 is expected to be released in April 2007. Current versions of Adobe's creative products, such as Creative Suite, Photoshop, etc., do not run at full efficiency on Intel-based Macs. The bottom line is that there is significant pent-up demand for Intel-based Macs among the Adobe creative pro community. Adobe creative pro customers cannot run their Adobe apps at full efficiency on an Intel-based Mac until CS3 is released, so many are waiting until that time to upgrade their machines.

If these customers upgrade to a new Mac within the first 2 quarters following CS3 release (Jun-07 & Sep-07 quarters), one can expect 288k Macs sold to Adobe creative pros in each of those 2 quarters. That would be 138k more Macs per quarter than the firm had been anticipating, as they had been using an estimate of 150k Macs per quarter to Adobe creative pros. 138k more Macs sold to Adobe customers per quarter would add 7% ($0.04) to their EPS estimate in both the Jun-07 and Sep-07 quarters.

Reits Outpeform and $99 tgt.

Notablecalls: So, PJ is calling for an $0.08 upside in their EPS. The stock is trading around 25x FY07 consensus EPS implying $2 upside in price. At least that's how it should work theoretically. IN reality, I do like AAPL's chart here and I think there may be some buy interest today. Would keep it on a tight leash and would definitely not chase any gaps up.

1 comment:

4allvets.com said...

World's Largest Thanksgiving Dinner to Thank our Troops and Veterans at Thanksgiving.

I am involved in a really great program to thank our troops and all veterans of World War II, Korea, Vietnam, Desert Storm, and the War on Terror. Together, we can send them an awesome expression of support this Thanksgiving. Brian Littrell of The Backstreet Boys is the spokesperson.

All you have to do is register your Thanksgiving Dinner at www.4allvets.com to be included in the World's Largest Thanksgiving Dinner. On Thanksgiving Day, we will thank all our troops and veterans for protecting us and for protecting our freedom.

We want the young people of America to know that Freedom is not Free, so please register today. There is no charge to register and JUST BY REGISTERING, you will be showing your support of the troops and our veterans. When you register, if you want you can get your own web page to send to friends and family. For more information, go to www.4allvets.com.

There are 24 million veterans in America. Our goal is one million families thanking our troops and veterans this Thanksgiving! You are One in a Million, so please sign up today at www.4allvets.com.

We are losing 1,800 World War II veterans everyday, so let’s all say thanks before it is too late. So, pass this on to anyone and everyone who knows a veteran or one of our troops, or just wants to say thanks. To help reach our goal, put this on as many blog sites as possible, we want everyone in America to have the opportunity to thank and honor our men and women in uniform.

They stand watch for us; here is our chance to say thanks! Please don’t put it off, do it now—thanks!