Rob Black's "Winners & Losers" April 24 Real Estate Winner, Market Winner & Apple Blows Out Numbers

By: Rob Black - Tue, 24 Apr 2012 16:55:35 -0800

Winner:  Stocks Rise Amid Stronger Earnings

Stocks advanced, following yesterday’s decline in the Standard & Poor’s 500 Index, amid better-than-estimated earnings at companies from AT&T  to 3M

Data indicated the housing market is stabilizing.

AT&T, the largest U.S. telephone company, and 3M, the maker of Post-it Notes, increased at least 1.5 percent.

International Business Machines, the world’s biggest computer-services provider, increased 0.7 percent after boosting its stock-buyback plan by $7 billion and raising its dividend.

Stocks have room to move higher. “Earnings are healthy. The bar has been lowered so far that you can just walk over it. Housing is on the mend. A sign of a market top is when people are exuberant. There’s no exuberance as witnessed yesterday.

Winner: Home Prices Fell at Slower Pace

Home prices in 20 U.S. cities dropped at a slower pace in the year ended February, pointing to stabilization in the real-estate market.

The S&P/Case-Shiller index of property values fell 3.5 percent from a year earlier.

Steadying home values are needed to lay the groundwork for a sustained rebound in the housing industry by giving prospective buyers confidence.

Near record-low borrowing costs and more hiring may help the market absorb the foreclosures still in the pipeline, which may mean housing will no longer hinder economic growth.

We really need to see strong job growth. It’s still a very long way to go before we get a full recovery.

Fifteen of the 20 cities in the index showed a year-over-year decline, led by a 17 percent plunge in Atlanta, a record for the city. Phoenix showed the biggest increase, with prices rising 3.3 percent in February.

REAL ESTATE PRICES  1 Year

Phoenix           3.28%  
San Diego         -3.86%  
Las Vegas        -8.54% 
San Francisco    -4.09%  
Los Angeles      -5.20%  

 

REAL ESTATE PRICE 3 YEARS

Phoenix           -6.99%
San Diego         1.53%
Las Vegas        -25.78%
San Francisco     3.56%
Los Angeles      -2.26%

Winner:  Apple Profit Rises 94% on Global Demand

Net income in the fiscal second quarter climbed to $11.6 billion, or $12.30 a share, as revenue increased 59 percent to $39.2 billion,

Apple reports Q2 gross margins of 47.4% vs Street est of 42.7% and 42% guidance

Apple reports 4.0 mln Macs sold in Q2 vs Street est of ~4.5 mln

Apple reports 11.8 mln iPads sold in Q2 vs Street est of ~12 mln

Apple is generating ~$6.5 million of cash per hour

Apple Piling Up Cash At Close To $100,000/Minute:

Apple profit jumps 94% to $12.30 a share on iPhone, ipad sales.

AAPL sold 11.8m iPads up 151% year over year .....short of expectations.only slightly better than Q4 (11.1m) despite new iPad release. Apple says it is selling new iPads as fast as they can make them (still constrained).

iPhones grew 88% YoY. IPhone had growth across all segments, especially in Asia and Japan were they doubled YoY...

Half of Macs sold were to new customers that had not had Macs before.

China, where Apple’s products are manufactured, has become a centerpiece of Apple’s sales growth since the introduction of the iPhone there in 2009. The company generated $13 billion in sales in China last year. Apple’s sales in the broader Asia-Pacific region grew to $22.6 billion last year, accounting for 21 percent of the total, from $3.18 billion in 2009.  They are just getting started in China. The company will get a lift when the iPhone is available on China Mobile, the country’s biggest carrier, with more than 600 million subscribers.

Apple component suppliers showing strength in after hrs following AAPL's strong earnings results: CRUS (+5.0%), QCOM (+1.0%), BRCM (+3.2%), TQNT (+3.7%), SWKS (+3.4%), and NUAN (+3.7%)

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