Main market news here.Thousands are lining up to buy the new, and as many say, revolutionary phone (or should we call it something else as it is so much more than a phone) from Apple Inc. (NASDAQ: AAPL) -- the iPhone. It will go on sale in the United States at Apple and AT&T Inc. (NYSE: T) stores at 6 p.m. Friday in each time zone. Apple shares are up 0.6% in pre-market trading (8:00 am) ahead of the iPhone debut.
USA Today has a Q&A with Apple's Steve Jobs and AT&T's Randall Stephenson.
Blockbuster Inc. (NYSE: BBI) yesterday announced it plans to close 282 stores in the U.S. this year to improve operating margins and expand domestic share.
Alex Taylor of Fortune Magazine claims that the new fuel regulations would doom U.S. automakers.
Restaurants are retailers? Well, six restaurants were included on the list of the Top 100 Retailers ranking featured in the July issue of the National Retail Federation's magazine STORES. McDonald's Corp. (NYSE: MCD) was ranked the 16th largest retailer. Yum Brands Inc. (NYSE: YUM) is No. 35 and Starbucks Corp. (NASDAQ: SBUX) No. 42.
What retailers were ranked among the list? Well, Sears Holdings Corp. (NASDAQ: SHLD) lost ground this year and fell to No. 6 on the National Retail Federation's Stores magazine list, losing two places to Costco Wholesale Corp. (NASDAQ: COST) and Target Corp. (NYSE: TGT). Wal-Mart Stores Inc. (NYSE: WMT) remained the world's largest retailer, while the No. 2 and No. 3 places remained Home Depot Inc. (NYSE: HD) and Kroger Co. (NYSE: KR).
Motorola Inc. (NYSE: MOT) started selling the ultra-slim Razr cell phone in South Korea Friday, the Razr2. The global launch is scheduled for July.
According to the Wall Street Journal, the U.S. Federal Communications Commission launched yesterday a consultation as to whether it should remove its regulation forbidding the two satellite radio companies, Sirius Satellite Radio Inc. (NASDAQ: SIRI) and XM Satellite Holdings Inc. (NASDAQ: XMSR) to merge.
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Reader Comments (Page 1 of 1)
6-29-2007 @ 5:07PM
Manny Backus said...
Yesterday, I came across an article in the WSJ with a surprising conclusion: AAPL may be overvalued!
To reach this conclusion, they compare AAPL’s handset business with Nokia’s (NOK):
Since the iPhone was unveiled on January 9th this year, shares of AAPL went up from $85 to over $120. This has increased AAPL market cap in $34 billion. That means investors are valuing the iPhone business in $34 billion. That’s a lot of iPhones! But AAPL is expecting to sell only 10 million iPhones by the end of 2008.
Compare this to Nokia (NOK), who is expected to sell 550 million phones in the same period, and has a $108 billion market cap.
So NOK sells 55 phones for every iPhone. Yet its market cap is only worth 3 times as AAPL’s iPhone business. This doesn’t make sense in my book.
So what do you think? Should we short APPL and bet against Steve Jobs? (I never thought I would say that!)
http://www.manuelbackus.com/2007/06/wanna_bet_against_steve_jobs_a.html