Monday, April 16, 2007

Calls of Note Part 1

- Piper Jaffray notes they attended the NAB tradeshow yesterday. NAB is the largest show for broadcast & post production companies. The two key themes at the show this year were: 1) the move to HD -- which has been a theme for the last several years, and 2) growth in web based video -- which has been a topic in the past and is becoming a bigger theme. Firm believes the general health of the broadcast & post production industry remains strong, and they would focus on companies positioned to capture business from one of these two major industry trends.

Apple (NASDAQ:AAPL) introduced Final Cut Studio 2, which is an update to its existing video production suite (continues to be priced at $1,299). More importantly, Apple introduced Final Cut Server, an asset management and workflow automation tool. Apple has consistently been criticized for not having a way for pro editors to tackle high end projects, given the lack of tools allowing editors to work collaboratively and manage the workflow of big projects. PJ believes the release of Final Cut Server is a sign that Apple is trying to push Final Cut into higher end projects. A higher end version of Final Cut has been rumored for 2 years, but it failed to materialize again this year.

Apple's announcements at NAB yesterday are not big news compared to the company's other product announcements this year, and the firm does not expect that these announcements will impact numbers in the near term. Maintains Outperform and $123 tgt.

Notablecalls: A non event for AAPL but given the lack of higher end version of Fincal Cut, there may be some buy interest in AVID. Please see archives for further color on the topic.


Tommo_UK said...

"No news" for AAPL? Another un-notable call from NoteableCalls. Apple just signed Avid's death warrant with the new Final Cut Studio at a price point to make its competitors bled to death. And they did release a new version of Final Cut Pro... Version 6.

If you knew the slightest thing about broadcast video and editing, you would realise what a "big deal" this is, and how strongly it going to drive upgrades of the 800k Final Cut Pro installed user base to both new Mac Pros and the new Final Cut Studio 2.

Seriously, you need to do more research and check your facts before you make your "noteable calls."

notablecalls said...

Looks like the market doesn't care much about Fincal Cut. And AVID's trading up, while AAPL's down despite positive Barron's mention.

notablecalls said...

Oh and btw, I don't mind reading your comments but do keep the personal attacks to yourself.

Tommo_UK said...

The market doesn't understand what's just happened, that's why. Any analyst who can recommend buying shares in a company that is obviously being pushed to the margins of its core business (Avid) is either a) clueless or b) desperate to unload a dud position. How can anyone want to touch Avid with a barge pole? Apple will own this entire industry in a few years' time, and Avid's high end business will last as long as it takes for Apple to enter it. After that, its adios Avid.
As for the personal attacks, they're not meant to be personal, but your somewhat gleeful taking-down of AAPL in many of your comments begs a sharp correction to those who consider themselves better informed on the company. If you weren't so quick to pan the stock and the company's prospects wherever possible in the face of the most incredible performance out on by a mega-cap corporation in years, I suppose I wouldn't be so quick to fire off a strongly-worded missive, but apologies if they're rubbed you up the wrong way - I don't intend to be insulting.

notablecalls said...

I think what we have here is a typical trader vs. investor situation. You being the investor and NC being the trader. Investors tend to focus on the LT trends while traders try to game the ST fluctuations.

Tommo_UK said...

Fair comment, though in actual fact I hold a LT core position of AAPL common and trade AAPL derivatives (CFDs) ST.