EFTA00830558.pdf

From: "Jeffrey E." <jeevacation@gmail.com> To: Richard Kahn • Subject: Re: Apple, Inc.: Cautious Into The Print; Buy Any Post-Earnings Dip Date: Fri, 20 Apr 2018 10:15:48 +0000 Yes On Fri, Apr 20, 2018 at 6:07 AM, Richard Kahn < > wrote: Yes that appears correct. Sharon mentioned reserve now 700k? Richard Kahn HBRK Associates Inc. 575 Lexington Avenue, 4th Floor New York, NY 10022 Tel Fax Cel On Apr 20, 2018, at 6:02 AM, jeffrey E. <jeevacation@gmail.com> wrote: i think we got sucked in to the chrisites auction. I reviewed past auctions and statues like this make the orignal 500k or such. total for the whole auctions are aroudn 4m. the value of our two . -- not our problem but we are on notice On Fri, Apr 20, 2018 at 6:00 AM, Richard Kahn > wrote: Richard Kahn HBRK Associates Inc. 575 Lexington Avenue, 4th Floor New York, NY 10022 Tel Cel Begin forwarded message: From: "Morgan Stanley" Date: April 20, 2018 at 12:34:24 AM EDT To: Subject: Apple, Inc.: Cautious Into The Print; Buy Any Post-Earnings Dip Reply-To: 14 EFTA00830558 ,,Morgan Stanley Wealth Management Apple, Inc.: Cautious Into The Print; Buy Any Post-Earnings 2 1 P. 1;2pownload Report Katy L. Huberty, CFA— Morgan Stanley April 20, 2018 4:01 AM GMT We forecast in-line March Q but see downside to June consensus estimates following iPhone build cuts and weak China data. We expect Apple to increase capital return program by $150B. We would buy any post-earnings dip on 1) intact Services story, 2) troughing ests, and 3) accelerated capital return. What to do ahead of earnings. We expect Apple to report an in-line March quarter, but are cautious into earnings on May 1 due to our belief that June quarter consensus estimates need to be revised lower. Additionally, with expectations for a step up in capital returns at least partially embedded in valuation (AAPL +14% since last print vs. Tech sector +5%, S&P 500 +2%), Apple's capital return announcement could amount to a "sell the news" type of event, especially if forward estimates are revised materially downward. That said, we would be buyers on any weakness following the print given 1) the Services story remains intact, (leading to a stronger and more consistent source of EPS growth and margin expansion), 2) estimate revisions are approaching trough (we already assume no device revenue growth next three years), and 3) buybacks remain a source of downside protection. We lower our March and June quarter iPhone shipment estimates by 7M (1M in March, 6M in June; FY18 iPhone shipments now at 210M, from 217M), while increasing expectations for both buybacks and dividends, resulting in FY18e EPS of $11.00 (down from $11.60) and FY19e EPS of $13.80 (down from $14.00) (1 & 2). We remain Overweight with a price target of $200 (down from $203), for 16% upside from current prices.We expect an in-line quarter...We believe that Apple will post March quarter results that are at the low end of its previously issued guidance and in-line with our updated estimates. Our proprietary AlphaWise iPhone demand tracker points to sell out of 54M in the March quarter (3), however we expect channel inventory reduction of —2M units in the quarter after record inventory build in December, which This alert is sent Irmo: EFTA00830559  Andrew Atlas. You received this because you requested that you receive content and reports from: APPLE INC. Please contact your FA if you want to unsubsaibe from the alerts. Disclosures: Please see the full report for risks, disclosures and other important information. Important disclosures regarding the relationship between the companies that are referenced in Morgan Stanley research and Morgan Stanley Wealth Management research are available on the Morgan Stanley Wealth Management disclosure website at https://www.morganstanley.comfonline/researchdisclosures. 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If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA00830561