Oink
Wall Street rolled out HEELYS (HLYS-NASDAQ) coverage today, painting lipstick all over our favorite pig.
The stock has been ticking higher over the past few trading sessions, likely in anticipation of the sell-side machinations.
CIBC initiated with a Sector perform rating, JP Morgan with an Overweight, Bear Stearns with an Outperform and Wachovia with a Market Perform. Initiations
Of course, there is probably only one person who can get this stock truly flying.
On a related note, Lean Hog Futures are trading relatively unchanged in light volume at the Chicago Mercantile Exchange.
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The content contained represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. no positions in securities mentioned above.
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Herd on the Street
In early December the sell-side jokers that cover Apple Computer (AAPL-NASDAQ) began to sharpen their pencils, taking their first cuts at modeling the impact of the iPhone on Apple’ earnings and pontificating on the stock’s investment appeal…
“However, we believe the iPhone is likely to be largely cannibalistic to iPod sales, rather than entirely incremental to Apple, limiting upside” Looks Good on You
Eric Savitz has a roundup of the latest guesstimates…
Apple’s iPhone business will become a $4.75 billion a year business, says Benjamin Reitzes, who follows the company for UBS Securities, but it will hurt Apple’s operating margins initially as the company ramps up to fight Motorola and the rest: “Assuming Apple is able to achieve this goal, we estimate a potential annual revenue contribution of about $4.75 billion (assuming a $475 average selling price to Apple) and annual EPS contribution of about $0.35. Our assumptions include operating margins of about 10% (well below Apple’s current 12.6% margin) due to the incremental costs associated with entering the cell phone market (note that Motorola currently has operating margins of 11.9%).” But it’s okay because, “Revenue from the actual cell phones is just the start. Through the phones, we believe Apple is embarking on another chapter in multiplying its revenue streams as it sells more accessories and cellular services. Also, with a foray into phones, we believe that Apple can expand revenues into incremental music and video. As a result, we believe the iPhone ecosystem can add up to $0.50 cents in earnings power within a year and a half.” Sales in the fiscal year ending September 2008 will be $31.5 billion, says Reitzes, above his prior estimate of $28 billion, because of strong performance of the iPhone, and he thinks Apple shares can rise to $118 over the next 12 months. Tech Trader
Do you trust people in suits?
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The content contained in this blog represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No position in security mentioned.
44 Cents an Hour
One of the sadder episodes on Wall Street came to a close last week with the sentencing of Stanislav Shpigelman to 37 months in prison...a gloomy day indeed.
It wasn’t a very good trade...given that he made $12,000 off the caper...and gets to spend the next 3+ years raking sand traps.
Crime doesn’t pay…
The former Merrill analyst told a Manhattan courtroom Friday that ‘I realize my actions are inexcusable. I should have walked away from the situation, but I didn’t have the strength’. Shpigelman’s lawyer said that ‘he’s made a mistake he’ll pay for for the rest of his life’. His mother expressed concern about the jail time, saying that ‘I know my son. I am afraid the stress of prison may break him’. Here Is The City
Back at the Trough
Some investors are gluttons.
They usually get slaughtered.
Our favorite flying pig is nearly a month old. You know what that means.
HEELYS (HLYS-NASDAQ) is likely on the cusp of Wall Street coverage....
Sure, it is most likely to come from the underwriters of the IPO. You know those guys..the only people on Wall Street who have made money in the stock.
Do you want some help with your homework before the underwriters crank up the printing presses? Maybe an unbiased source?
Waddle on over to the 10-Q detective....
You can get a peek at customer concentration. And legal risks. Yada yada.
You know the drill. All the stuff that might help you decide what multiple to place on the stock.
We don’t have anything against HEELYS...or the kids that favor the shoes.
Stocks like this make working on Wall Street fun.
Are you having fun yet?
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No positions in securities mentioned. The content contained in this blog represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.
