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Alex Cho  

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  • BlackBerry: Ignore Hardware, It's Time To Focus On Software [View article]
    They're at around 20% share in the MDM industry, so it's not far-fetched.
    Mar 23, 2015. 02:00 PM | 5 Likes Like |Link to Comment
  • A Logical Reason Why Apple Will Use An Intel Modem [View article]
    That's not the argument of the article. The article is starting that Intel can be price competitive and win Apple's business, because the infrastructure isn't even there to take advantage of faster uplink and downlink speeds.
    Mar 23, 2015. 01:58 PM | 2 Likes Like |Link to Comment
  • A Logical Reason Why Apple Will Use An Intel Modem [View article]
    Yeah it does matter, because iPhone's represent around a fifth of their total smartphone volume. Take into consideration the BOM on an iPhone is about 2x to 3x that of a low-end smartphone, and it's likely that the impact on earnings will be significant upon losing the modem business to Intel.
    Mar 23, 2015. 01:57 PM | 2 Likes Like |Link to Comment
  • Why Facebook Remains A High Conviction Long Idea [View article]
    Technically speaking there's no upper-limit to the size of any business, so it's not a good idea to even rule out a $500 billion market cap. Admittedly, that will take a while to actually occur, so don't think for a second that I'm saying $500 billion, here we come! But here we are in 2015, and a GDP figure that's much bigger than the one in 2000. So as long as the economy can continue to expand, and Facebook is positioned well enough to sustain margins, while growing sales at a fairly sustainable pace, I feel comfortable with rating the stock highly even at these levels. Thanks.
    Mar 20, 2015. 04:47 PM | 7 Likes Like |Link to Comment
  • Why Facebook Remains A High Conviction Long Idea [View article]
    Also, banks have lower margins in comparison to Facebook, so the sales hurdle isn't that high, and furthermore, banks have had difficulty with expanding top-line growth, as their exposure to risk is heavily contingent on how strategic they are with cash, and how quickly they can grow account balances. In many cases, they blow-up and report "epic fail" quarters in which someone loses a couple billion in bank assets, or their risk compliance is off, so they end up losing money to out-out-court settlements, which is why investors have to be aware of the risks when investing in banks. From my experience, banks can be good investments, but you have to be patient and know when an executive has accumulated a sizable advantage in relation to other banks, without tripping over regulators, and running into size constraints. The other option is doing really good valuation work, but you're going to wait around for 2-3 years before valuations trade closer to the mean, if you're basing investment decisions solely on value-metrics.
    Mar 20, 2015. 04:21 PM | 2 Likes Like |Link to Comment
  • Why Facebook Remains A High Conviction Long Idea [View article]
    I'm not that skeptical on Twitter's upside, it's just at an earlier stage of growth, as Costolo is looking for more avenues to monetize the Twitter stream. They released many more ad formats, and are looking for integration opportunities into programmatic platforms, which could drive significant growth going forward. I'll have published comments on this later next week. Thank you.
    Mar 20, 2015. 04:18 PM | 4 Likes Like |Link to Comment
  • Why Facebook Remains A High Conviction Long Idea [View article]
    I'm glad you like my content, I work very hard, and it's often the comments left by readers that keep me motivated, more so than anything else. I look forward to reading more of your comments, and enjoy being a part of the world's biggest investment community.
    Mar 20, 2015. 04:16 PM | 6 Likes Like |Link to Comment
  • Why Facebook Remains A High Conviction Long Idea [View article]
    Yeah, the growth prospects seem promising at the present moment. I've done plenty of research on JPMorgan Chase, of course, I plan to release an extensive report on how I feel about the company, but I need to do more due diligence on the risk weightings of assets based on what the Federal Reserve has published for tier-capital ratios. Upon completing enough due diligence to feel confident in what I'm saying, I'll be corresponding more frequently with the finance editors at SA. In the meantime, I'm going to be focused on technology names for the week, and it'll be difficult to make direct comparisons to financial sector banks to rapid growth tech stocks, as they're of course two different industries with different risks, and different degrees of upside. Thank you.
    Mar 20, 2015. 04:15 PM | 3 Likes Like |Link to Comment
  • Fed Funds Not So Easy: Major Implications For Stocks [View article]
    Technically the CPI reading excludes more volatile inputs like energy for example, and I think agriculture. I'll need to double check that, but I'm sure James can follow-up with a more accurate comment on how the core CPI measure is calculated.
    Mar 20, 2015. 02:41 PM | Likes Like |Link to Comment
  • Why Your Only Edge With Large Caps Is Valuation [View article]
    As quoted from Bain Capital:

    "In today’s world of superabundant capital, the conditions that made it possible for top GPs to cruise from success to success have washed away in a flood of money chasing assets. With so much capital in the hands of so many GPs, opportunities to quietly ferret out proprietary deals at cheap prices are gone. Record low interest rates on high-yield debt and covenant-lite loan terms have opened the spigots of leverage to PE borrowers, broadening the pool of potential buyers. Today, nearly every GP has the means—and incentive—to hire consultants and other outside advisers to reduce the likelihood of big mistakes."

    If it was so easy to identify cheap deals, everyone would have already done it. Fact is, foresight is more important these days. Understanding the varying characteristics of any deal structure, based on local economics, proprietary knowledge of the business, management team, and outward looking assumptions is most important today, than it was ten-years ago.

    Anyone with a great deal of discipline can buy cheap, but for those who have capital tied-up in multi-year deals, it's hard to simply liquidate assets, whenever liquidity gets drained, which is why having a high amount of dry powder is important. So before lecturing on buying cheap, don't forget to mention that having a pile of cash (at all times) is even better.
    Mar 20, 2015. 12:31 PM | 1 Like Like |Link to Comment
  • Markets Likely To Rally For The Year: Financials Look Hot [View article]
    hahaha, sure, but be selective.
    Mar 20, 2015. 11:47 AM | Likes Like |Link to Comment
  • What To Expect When The Fed Actually Does Raise Rates [View article]
    Pretty solid article, thanks Dirk.
    Mar 19, 2015. 06:31 PM | Likes Like |Link to Comment
  • Markets Likely To Rally For The Year: Financials Look Hot [View article]
    Thanks for taking the humor, lol.
    Mar 19, 2015. 03:40 PM | 1 Like Like |Link to Comment
  • Apple's Reported Price Raises: Will They Help Or Hurt? [View article]
    I don't really agree with that assessment of yourself, but that's just me.
    Mar 19, 2015. 03:18 PM | 13 Likes Like |Link to Comment
  • Apple's Reported Price Raises: Will They Help Or Hurt? [View article]
    Uh... check your ego Bill.
    Mar 19, 2015. 01:53 PM | 10 Likes Like |Link to Comment
COMMENTS STATS
2,384 Comments
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