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Brad Kenagy  

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  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment and sharing your experience with me and the readers of this article.
    Feb 19, 2015. 08:21 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment and your thoughts on Apple. My model as well as Carl Icahn's model is based on Apple repatriating its Cash. The big question I have is how much stock can Apple buyback, and how much dividends can they pay without bringing their foreign cash back.
    Feb 19, 2015. 08:20 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment. A fellow reader gave me a link to a WSJ article that was posted after I had been writing my article.

    Two key points the article brings up:

    "Therefore, we believe the correct way to treat this non-cash tax for the purpose of valuation is to add it back to earnings, reflected in our EPS forecast.”

    AND

    "Mr. Icahn’s EPS forecast, in which he adds these accrued-but-not-paid-t... back to Apple’s earnings."

    Basically it is an accounting tactic, "non-cash" and "accrued but not paid taxes". This is why I included the section on repatriation risk, because currently there is no reason for Apple to bring back the cash at current tax rates.

    http://bit.ly/1vLB2C6
    Feb 19, 2015. 08:12 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    If Apple got to a $6T company by 2018, and held their current cash as a % of its market cap which is around 24%, That would mean Apple would have $1.4 trillion in cash. They could give the government a good deal :D on a loan.
    Feb 19, 2015. 08:04 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for your comment, and adding to the discussion about valuations of fellow tech companies.
    Feb 19, 2015. 07:55 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment. You bring up some interesting points about Apples committing to shareholders, and the other items like currency and debt you brought up. The one issue I have with your comment is I in fact did include value for new Apple products because I used Revenue estimates from Carl Icahn's proposal, because included in his estimates were the Apple Watch, Apple TV, and Apple Pay.

    http://bit.ly/1zrtG8h
    Feb 19, 2015. 07:54 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment, I'm glad you enjoyed the article and found it helpful.
    Feb 19, 2015. 07:48 PM | 1 Like Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment. You are correct, I never said that Apple couldn't reach $216 at some point, but I just don't see it being worth that much right now or within the next year. It is funny, many comments make it seem like I am bearish on Apple, which is nowhere near the case. If projecting 32% upside is bearish, they we must be at a market top :D
    Feb 19, 2015. 05:52 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comments, and kind words. I agree with your assessment on the future of Apple, However, I think Apple Pay will end up being the bigger product/service than the iWatch. People can only have so many Apple technology products, Iphone, Ipad, Iwatch etc. With Apple pay, consumers can use it to make purchases every day for potentially a lifetime.
    Feb 19, 2015. 05:48 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment, I chose the worst two years of growth because I wanted a conservative estimate for the value of Apple, and because the path upward could have pockets of weakness.
    Feb 19, 2015. 05:44 PM | 1 Like Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment. The path for Apple higher is also dependent on the overall market, and potential black swans event, like the port shutdown on the west coast which could impact Apple along with many other companies.
    Feb 19, 2015. 05:41 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    A fellow reader gave me this link to an article that was posted after I had been writing my article.

    Two key points the article brings up:

    "Therefore, we believe the correct way to treat this non-cash tax for the purpose of valuation is to add it back to earnings, reflected in our EPS forecast.”

    AND

    "Mr. Icahn’s EPS forecast, in which he adds these accrued-but-not-paid-t... back to Apple’s earnings."

    Basically it is an accounting tactic, "non-cash" and "accrued but not paid taxes". This is why I included the section on repatriation risk, because currently there is no reason for Apple to bring back the cash at current tax rates.

    http://on.wsj.com/1vLB2C6
    Feb 19, 2015. 05:38 PM | 1 Like Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for posting.
    Feb 19, 2015. 05:33 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment, I agree with you that Apple always seems to be one step ahead of the game.
    Feb 19, 2015. 05:32 PM | 1 Like Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment, I agree with you that in a longer period of time Apple could see $216/share, I just don't see that happening right away.
    Feb 19, 2015. 05:28 PM | 4 Likes Like |Link to Comment
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