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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, SA only deleted a few of the comments, I am glad you enjoyed my article.
    Feb 24, 2015. 05:50 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Al, Thank you for the comment, and I will try to answer your questions.

    1. I didn't include interest income because if Apple were to repatriate all or most of their cash as Carls plan, and my scenario lays out, interest income would most likely become irrelevant because all that cash would be spent on buybacks and dividends.

    2. I did include the effect of reduced shares on dividends, I multiplied my estimated dividend totals for each year by the shares outstanding after buybacks for each year.

    3. Yes there is a deferred tax allocation on the balance sheet, however, as in comments of this article that is a "non-cash" "not yet paid item" so eventually even though they have accounted for it, they will have to use cash to pay that tax if/when they repatriate.

    4. Earnings could grow faster than my estimates depending on the success of product launches, as well as Apple repurchasing shares at a faster rate than I estimated, and if the repatriation tax is lower than 14% that I used in my model. Quotes on these topics from my article below.

    -"If Apple does in fact repurchase shares at a faster pace, my EPS totals would have to be adjusted higher."

    -"f the repatriation rate is somewhere below 14%, but higher than 6%, my valuation would further approach the proposal's valuation."


    Al, I hope that answered your questions.

    Thank you for reading
    Feb 24, 2015. 10:28 AM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment, and the information about the Barrons upgrade of Apple.
    Feb 23, 2015. 02:11 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    @Retired One, Thank you for your kind comments. I like being conservative, and try not to let emotion in. I am most definitely a numbers guy so I for the most part always try to focus on the numbers.
    Feb 22, 2015. 06:12 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for your comment, and your thoughts on Apple. I agree that taxes are a huge wildcard.
    Feb 22, 2015. 01:09 AM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment Ken, A fellow reader gave me this link:
    http://bit.ly/1vLB2C6

    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".
    Feb 20, 2015. 04:18 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment. I agree that there is no reason for Apple to Repatriate at the current tax rate, and without those funds available to fund sharebuybacks, Apple I believe will have to continue issuing debt, if they keep doing large scale buybacks.
    Feb 20, 2015. 12:31 PM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    That you for the comment, I have a pretty thick skin and can shrug off any bad comments. I requested that one comment by a user be deleted because it had vulgar language, besides that everything else has stayed.
    Feb 20, 2015. 12:21 PM | 1 Like Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment, the $43.9 billion in my calculations is after accounting for IF Apple were to repatriate its cash, if they didn't bring the cash back Net income for 2015 would be $50.7 billion.
    Feb 20, 2015. 10:45 AM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment, i'm glad that you enjoyed my article and thank you for the data you provided on historical returns.
    Feb 20, 2015. 10:29 AM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment, and your thoughts on repatriation taxes, and your thoughts all companies repatriating not just Apple.
    Feb 20, 2015. 10:24 AM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment, I actually haven't shaved for like 10 days, Maybe I should take a new picture :)
    Feb 20, 2015. 10:22 AM | 1 Like Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment, and adding to the discussion on taxes.
    Feb 20, 2015. 10:21 AM | Likes Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for the comment, and your "informal" survey results are interesting if true.
    Feb 19, 2015. 10:00 PM | 1 Like Like |Link to Comment
  • Carl Icahn's Apple Price Target Appears Unrealistic [View article]
    Thank you for your comment, and I agree with you that Apple is a potential safe haven.
    Feb 19, 2015. 08:49 PM | Likes Like |Link to Comment
More on AAPL by Brad Kenagy
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