Hope you weren’t counting on the new Apple TV coming out by the holidays. We’ve just heard it's not likely.
In a live interview on CNBC’s Fast Money Halftime Report, Toni Sacconaghi, Senior Research Analyst Sanford Bernstein told us, “I don’t think a television is likely in the next 6 months.”
That forecast comes in sharp contrast to something Gene Munster told us a few weeks ago. On May 30th Munster said a new TV could come as soon as December. (Click here to go to Don’t Buy a TV, Apple Is Working on Something Big: Munster)
But Sacconaghi says no.
And although that may leave the Apple faithful disappointed on Christmas morning, Sacconaghi also tells us, it won’t disappoint investors holding Apple shares.
“There was has been wide speculation about the television for about year but there’s no date and there never has been,” he explains. “I don’t think that will prove to be a disappointment because nobody’s looking for this on December 15th.”
In fact, Sacconaghi says Apple is a buy at current levels.
“Apple is a great secular story – for any investor with more than a 6 month horizon the story is solid and valuations are reasonable.”
He believes the stock has two very big upward catalysts. They follow:
Deal with China Mobile
“China Mobile is the largest carrier in China with 700 million subscribers,” says Sacconaghi. "Although 600 million are pre-paid, the green field is the 100 million that will get a phone on contract. And 100 million is about the size of Verizon ."
“And we’re seeing enormous and rapid adoption of smartphones. Today 50% of phones sold in China are smartphones and over the next couple of years we think that grows to 80%.”
In other words the growth potential is huge.
Debut of iPhone 5
“We think the iPhone 5 is coming in either September or October,” he says. This is key because, “The iPhone 5 will drive Apple’s economics to the next level in the near-term. The iPhone 5 could yield 45-50 million phones in its first quarter (if it has 4G as widely reported on the Internet).”
If you’re serious about the stock, rather than focus on an Apple TV, Sacconaghi says focus on these two catalyst.
“This is what has to be successful – in the end, this is what will matter.”
Posted by CNBC's Lee Brodie
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Trader disclosure: On June 25, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long VRTS; Terranova is long MCD; Terranova is long PNC; Terranova is long USB; Terranova is long TCBI; Terranova is long SBUX; Terranova is long WMB; Terranova is long SJM; Terranova is long UPL; Terranova is long WFM; Terranova is long AAPL; Terranova is long EMC; Terranova is long NXPI; Terranova is long LPX; Terranova is long SNDK; Terranova is long IBM; Terranova is long CNX; Terranova is long HYG; Terranova is short Mini S&P Futures September; Terranova is short Mini Russell Futures September; Najarian short (PBI); Najarian has long call spreads FB; Najarian has long call spreads MMR; Najarian has long call spreads ARNA; Najarian has long call spreads CF; Najarian has long call spreads POT; Najarian is long DDMG; Najarian is long COGX; Najarian is long CBOE; Najarian is long CME
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