In Defense Of Apple: Battling The Mounting Hysteria [View article]
Investors should be looking for a company that pays a decent dividend, with billions in cash, zero debt, an undervaluation compared to the overall market, and above average growth. Oh wait, that company IS Apple. Look at where the company is and where it is going. Sure, there are some uncertainties, but every company faces the unknown. Sure, the company may not grow as exponentially as the past decade, but it will grow at an above average pace. I can't say where the bottom will be in the stock, but it should do well for the long-term.
Apple: A Look At The Chart, Historical Comparisons, And Academia [View article]
Brennan, Interesting unbiased analysis. One of the key things for Apple is to see if the company can maintain its higher prices while maintaining increasing sales. This will keep margins & earnings at well above average levels.
The other key for Apple will be its ability to continue producing game-changing technology. Thus far, they have been the leading technology innovator with other companies following their lead.
The implosions of Cisco, Microsoft, and Netflix had a lot to do with being overvalued in terms of PE ratios. Cisco and Microsoft imploded along with the rest of the market during the popping of the dot-com bubble. However, Apple began its sell-off with an undervaluation and is now even more undervalued. The current quarter's earnings report in Jan. will provide more short-term clarity on the direction of the stock.
A more sensical scenerio: The Dow doesn't drop past 8,000. Although we are experiencing a slow & tedious recovery, we ARE in fact recovering. Industrial Capacity Use & Consumer Sentiment is on the rise. 2. Housing prices, unemployment, and credit availability are stabilizing. Unless we get a doomsday situation, we will probably trade within 8k to 13k in the next five years before the next long term bull market (approx 15 years) taking us well over the previous highs of 14k. Just look at a long term chart of the Dow from 1900 to present.
The Obama Administration's Natural Gas Policy Is Tragically Misguided [View article]
I think you have to let the market determine whether natural gas exporting makes sense or not. If exporting is profitable for natural gas producers, then it will happen. Taxes and subsidies can be used to influence this profitability.
I agree, Newstrader. This looks more like a healthy pullback that was due to happen, rather than a bursting of a bubble. The dollar is most likely doing its dead cat bounce.
Apple's stock is just waiting for the next catalyst. The company reports earnings on Jan. 23 - the stock will move again based on earnings for the quarter and how the company guides for future quarters. The past earnings report was a disappointment and the company guided lower. This had a lot to do with the direction of the stock for the past few months. Things can turn around quickly with a new positive report - we'll just have to see.
The Better Burger Threat To McDonald's [View article]
Manhattan is not a good test market for the masses. Evansville, Indiana is used for that. Manhattan would be a good test market for the top 2%, but the remaining 98% will allow MCD to thrive for the long-term.
Dividend Investors Should Get Ready To Load Up [View article]
Since it is difficult to pick the perfect time to start or add to a position, dollar-cost averaging and dividend reinvesting are good techniques to employ. Tim highlights a few good dividend paying companies that can be used for this.
Apple: A Mixed Bag Of Competing Considerations From Fundamental To Technical [View article]
When the stock hit $700 and there was little negative sentiment - that was the time to be fearful when others are greedy. Now the stock is $509 with lots of negative sentiment - time to be greedy when others are fearful as Buffett likes to say.
Four Reasons We're Headed Even Higher [View article]
I believe that Jason is correct. It looks like he can "C" where things are going. All of these naysayers have been talking negative during one of the best stock market rallies of all time. If you are investing for the long term (10-20 years out) you will make money even if you get in the market right now. If you are a short term trader, then trade on technical analysis. Right now the trend is up.
The Better Burger Threat To McDonald's [View article]
I agree with TAS. Back in 2002, MCD did not look either, but it recovered. The company raised its dividend every year since the 70s. MCD was never about being the best burger. You could always get a better burger - in fact you can make them yourself with ground beef and a few other ingredients. MCD is about good tasting, quickly made breakfast food, lunches, and dinners for families on the go. The company has healthier offerings such as chicken, oatmeal, real fruit smoothies, apple slices, and salads.
Although the company has challenges, it will continue to thrive. MCD is about taking the kids out to a place they want to go. Do they ask to go to Five Guys? No, they want MCD & parents will accommodate them. MCD will continue to be a solid dividend investment for the long-term IMHO.
But Mr. Ackman, Herbalife Is A Sustainable Pyramid Scheme [View article]
If investigations take place and no wrongdoing is found, then HLF will be available at a great undervalued price. The company's multilevel marketing practices are not necessarily illegal or unsustainable. An illegal pyramid scheme is one where people must pay to join, but nothing of value is exchanged. Herbalife exchanges actual products and the business model has worked for over 30 years. It should be interesting to watch these developments.
The 13% expected growth for next year is not accurate. I'm seeing 19.5% designated for next year with 22.5% expected annually over the next five years. This is enough to double the market's performance. Apple has a tendency to exceed estimates.
Furthermore, I think the fact that Apple's earnings grow faster than its stock price over time, will keep the stock running higher. This is reflected in a forward PE ratio of 12.93 and a PEG of 0.68. These figures hold more weight than the price/sales ratio in my opinion.
Apple's current earnings projections are not really factoring in new innovative products. Although we don't know exactly what Apple has in its pipeline, I would bet that there will be more groundbreaking products in the future. Apple has been the leader with new innovations. Other companies are only able to copy them after the fact. -long AAPL
Energy Transfer Partners: Long-Term Energy Play With 7.9% Yield [View article]
Unless this is incorrect, yahoo finance is showing a quick ratio of 1.1, so I don't think that ETP will have any problems handling short-term debt. Also, Sunoco has $764 million in operating cash flow and a quick ratio of 1.2, so I think the MLP will be in even better shape with the acquisition.
Is Buy and Hold Dividend Investing Dead? [View article]
Yes, Buy and Hold will always be a wise strategy. One thing that you have to watch is the valuations of the stocks. In March 2000, the valuations were ridiculous (40x earnings). Even classic buy and holders such as Buffet sold some stock at these levels. Then, you must recognize good valuations. For example, buying stocks that trade under a P/E of 15, under a PEG of 1, under or near book value, consistently raise dividends, and consistently yield a total annual return of at least 15% (which is the annual dividend yield plus the annual earnings growth). If you do this, you will beat the market over time. If history repeats itself with approx. 17 years of bull market followed by 17 years of consolidating bear market, then we may have another 7 seven years of net sideways market movement. The dividend paying consistent growers as mentioned in the article should do well and put investors at ease of the daily market gyrations.
In Defense Of Apple: Battling The Mounting Hysteria [View article]
Apple: A Look At The Chart, Historical Comparisons, And Academia [View article]
Interesting unbiased analysis. One of the key things for Apple is to see if the company can maintain its higher prices while maintaining increasing sales. This will keep margins & earnings at well above average levels.
The other key for Apple will be its ability to continue producing game-changing technology. Thus far, they have been the leading technology innovator with other companies following their lead.
The implosions of Cisco, Microsoft, and Netflix had a lot to do with being overvalued in terms of PE ratios. Cisco and Microsoft imploded along with the rest of the market during the popping of the dot-com bubble. However, Apple began its sell-off with an undervaluation and is now even more undervalued. The current quarter's earnings report in Jan. will provide more short-term clarity on the direction of the stock.
Prechter's 'Dow 1000' Prediction: Nonsensical [View article]
Consumer Sentiment is on the rise. 2. Housing prices, unemployment, and credit availability are stabilizing. Unless we get a doomsday situation, we will probably trade within 8k to 13k in the next five years before the next long term bull market (approx 15 years) taking us well over the previous highs of 14k. Just look at a long term chart of the Dow from 1900 to present.
The Obama Administration's Natural Gas Policy Is Tragically Misguided [View article]
The Commodity Bubble Is Bursting [View article]
How Apple Gets To $400 A Share [View article]
The Better Burger Threat To McDonald's [View article]
Dividend Investors Should Get Ready To Load Up [View article]
Apple: A Mixed Bag Of Competing Considerations From Fundamental To Technical [View article]
Four Reasons We're Headed Even Higher [View article]
The Better Burger Threat To McDonald's [View article]
Although the company has challenges, it will continue to thrive. MCD is about taking the kids out to a place they want to go. Do they ask to go to Five Guys? No, they want MCD & parents will accommodate them. MCD will continue to be a solid dividend investment for the long-term IMHO.
But Mr. Ackman, Herbalife Is A Sustainable Pyramid Scheme [View article]
Apple: Take The Money And Run [View article]
The 13% expected growth for next year is not accurate. I'm seeing 19.5% designated for next year with 22.5% expected annually over the next five years. This is enough to double the market's performance. Apple has a tendency to exceed estimates.
Furthermore, I think the fact that Apple's earnings grow faster than its stock price over time, will keep the stock running higher. This is reflected in a forward PE ratio of 12.93 and a PEG of 0.68. These figures hold more weight than the price/sales ratio in my opinion.
Apple's current earnings projections are not really factoring in new innovative products. Although we don't know exactly what Apple has in its pipeline, I would bet that there will be more groundbreaking products in the future. Apple has been the leader with new innovations. Other companies are only able to copy them after the fact. -long AAPL
Energy Transfer Partners: Long-Term Energy Play With 7.9% Yield [View article]
Is Buy and Hold Dividend Investing Dead? [View article]
If history repeats itself with approx. 17 years of bull market followed by 17 years of consolidating bear market, then we may have another 7 seven years of net sideways market movement. The dividend paying consistent growers as mentioned in the article should do well and put investors at ease of the daily market gyrations.