The lack of any semblance of original research on Wall Street is absolutely appalling. This morning we have a downgrade from UBS where the analyst says that, according to him, Apple's procurement numbers for the December and March quarters have been revised lower which puts consensus estimates for the two quarters at risk.
Take a look at the following article and tell me how this research (UBS) differs from the stuff that Rosenblatt put out just late last week? I call it stuff because it can hardly be called research.
The analyst at UBS then says that he is leaving his estimates unchanged but said investors should note that his view remains below consensus.
I mean come on, give me a break.
The guy does not have the fortitude to cut his estimates but puts out a bearish report and then asks investors to note that investors should remember his "views" are negative or below consensus?
Come on, man.
How can anyone read that stuff and take it seriously?
However, looking at the stock price today (and lately) it's clear that folks do take this stuff seriously and thus far Tim Cook and gang have done very little but keep selling their vested stock grants and options at the soonest, which makes Apple easy enough to knock over with a feather. (Tax selling I totally understand however there is a whole lot more selling going on with the management team then just selling to pay taxes)
Not only is he parroting Rosenblatt which was in turn parroting the analyst at KGI Securities (so-called authority on Apple goings-on in Asia), but he is so obviously playing the CYA game that a slap in the face is less obvious.
Then the UBS analyst says that investors are looking to 2018 which he thinks will drive significant upgrades (once the iPhone 8 is out).
Finally, after all the bearishness in his article, he reiterates his Buy range and $127 per share price target.
Year-end bonus time for the sellside comes to your mind?
Or how about, heads I win, tails you lose?
(Long aapl, long and short aapl options)
