The Top Analyst Call of the Week (AAPL, MSFT, HPQ, GOOG)

A research report from JMP Securities this last week ended up having a significant impact on shares of Apple Inc. (NASDAQ: AAPL) and may have been considered blasphemy by many of the fanboy investors.  Regardless of opinion, the impact made this the top analyst call of the week.  JMP cut the rating to “Market Perform” from “Outperform” on Wednesday based largely upon weak sales growth at its Hon Hai manufacturing partner, and most of the concerns were noted before the disaster in Japan and before details of component shortages surfaced this last week.

JMP pointed out that iPhone sales seem to be mostly in-line with expectations and that sales of tablet PCs are  cannibalizing higher margin computer sales.  We all knew that some analyst at some point would throw in the towel.  It is just nature and if history has taught anything then the reality that “nothing lasts forever.”

Apple shares opened down at $342.00 and closed at $330.01 on Wednesday after closing at $345.43 on Tuesday.  Despite the market recovery, shares only closed at $334.64 on Thursday and the stock closed out the week at $330.67.  Friday’s close appears to be the lowest closing bell price was the lowest closing price since January 3, 2010.

There were a couple of headwinds here that coincided but have not helped Apple.  Microsoft Corporation (NASDAQ: MSFT) threw in the towel on its Zune, an admission that iPod and its 77% market share has won in the world of digital music.  Hewlett-Packard Co. (NYSE: HPQ) was at one point a week earlier rumored to be considering a sale of its PC-unit, a story which turned out to be wrong.  Perhaps the biggest threat is all the reports showing that Google Inc. (NASDAQ: GOOG) is winning with Android over iPhone.

A new analyst research sector coverage in tech and PCs on Thursday from Credit Suisse initiated Apple with an “Outperform” rating and a $500 target.  That call was lost in the shuffle and the damage in the stock may now be true damage in the stock’s chart.  The stockcharts.com chart below should show this possibility as its 50-day moving average has been clearly violated:

JON C. OGG