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Geordy Wang

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  • Apple Is Not A Retirement Stock [View article]
    Hi poortorich:

    Yes, I'm still bullish on Apple's prospects, but I was never one of the ones who believed that the company could maintain its breakneck growth rate forever. Honestly, the argument that people are making now about how Apple needs to deploy its cash more efficiently is the same argument I made in one of my first articles almost two years ago, but of course it was much less well received back then. Apple was never my largest position, but I did, and still do expect it to outperform the index going forward, which is why it's still in my portfolio.
    Feb 9 02:17 PM | Likes Like |Link to Comment
  • Apple Is Not A Retirement Stock [View article]
    rich:

    Yup, I do believe that Apple is a great company selling below its intrinsic value, which is why I'm still long the stock (it totally pisses me off that SA moved the disclosure to the top which ruins my surprise ending, though it's not much of a surprise for anyone who has been following my articles!). What I don't believe is that it's the kind of safe, stable investment with predictable yearly returns that many people are making it out to be. The considerable upside is accompanied by a considerable downside. Anyway, we all have our own criteria for what constitutes a good requirement stock, so take what I wrote with a grain of salt. As I said, I'm still optimistic about the company's prospects, it's just a stock you need to keep an eye on. :)

    And regarding subsidies: the US is definitely the most prevalent, but it's far from the only one. A lot of other countries are a bit more transparent about how they break down your bill though. For instance, when I went to Australia last year, they break down your plan into a monthly service cost and a monthly cell phone cost depending on what phone you choose, so you know exactly what you're paying for your phone.
    Jan 18 08:12 PM | 1 Like Like |Link to Comment
  • Bet Against The Shorts, Buy Buckle [View article]
    Sure, I don't have any reason not to expect another special dividend this year, though I wouldn't really be disappointed if it doesn't come since it'll probably mean lucrative investment opportunities are opening up in the apparel industry again.
    Sep 3 10:58 PM | Likes Like |Link to Comment
  • Bet Against The Shorts, Buy Buckle [View article]
    Since this article popped up in the dividends section of the site, I want use this space to note that Buckle has been paying out almost all of its free cash flow in the form of a massive special dividend over the past few years. It wasn't the main focus of the article, but it's definitely a relevant part of this story, and other articles about the stock go into more detail for those interested in this aspect of the company.
    Sep 2 01:17 PM | 2 Likes Like |Link to Comment
  • Bet Against The Shorts, Buy Buckle [View article]
    Hi Alpha:

    Some may see that as a negative, but I honestly don't. With age comes experience, after all, and it's not like the company is run by a bunch of octogenarians (of course, I own Berkshire Hathaway so I wouldn't care if it was!). The CEO barely cleared 60, and most of the higher level executives are in their 40s and 50s.
    Sep 2 01:14 PM | 1 Like Like |Link to Comment
  • Important Metrics For Dividend Growth Investors [View article]
    DGM: The problem with that approach is that it doesn't take into account the time frame in which the new capital is injected. For example, if you calculate your return at the end of every calendar year, capital that's been added in December should be weighted differently than capital that's been added in January.

    The easiest way I've found to do what you're describing is to use the built-in XIRR function in Excel, which is so simple to execute that no prior knowledge of spreadsheets is necessary (which is good for me because otherwise I wouldn't be able to do it!). You just punch in values for initial capital, capital additions/subtractions, current portfolio value, and dates, and it spits out the annual growth rate for you. You can find a bunch of guides on how to set it up, but here's one: http://bit.ly/OfyjiB
    Jul 26 09:47 PM | 4 Likes Like |Link to Comment
  • Earnings Vs. Dividends: Which Is More Important? [View article]
    davel: Past performance of a stock has no bearing on whether or not I will continue to hold (after all, selling would've turned those paper gains into actual gains). However, I believed that at this moment in time, initiating a dividend is the right move for Apple from a capital management perspective. I require my companies to have financial discipline as well as operational excellence, and if Apple failed to pay a dividend, it would not have fulfilled that former criterion in my eyes, hence I would've sold.

    Edit: Also, what Lex said. :)
    May 4 12:43 PM | 1 Like Like |Link to Comment
  • Earnings Vs. Dividends: Which Is More Important? [View article]
    Editors have been notified of the error. Thanks, binary, for pointing it out (and Counterpoint for sticking up for me!).
    May 4 12:35 PM | 1 Like Like |Link to Comment
  • Seeking Alpha Passes One Million Members -- 5 Things You Need To Know [View article]
    Congrats everyone! :)
    Mar 26 01:37 AM | 2 Likes Like |Link to Comment
  • How The IPO Market Is Broken [View article]
    Good read, Felix, though I disagree with your ultimate conclusion. Venture capital support is necessary for small, innovative start-ups with a revolutionary product to move fast enough to stake out their claim in the market before an incumbent steals their ideas. Without being able to benefit from the turbo boost of a venture capital injection, it'll be almost impossible for a small company to overcome the larger financial resources and economies of scale of bigger companies. We'll all be using Google+ instead of Facebook, because Facebook wouldn't have established the momentum, user base, and developer support it needed to secure its business by the time Google entered the game. When you have the same old benemoths dominating the market because smaller companies don't stand a chance, you end up with a stagnant economy. Angel investments give smaller companies that chance.
    Mar 21 11:58 PM | Likes Like |Link to Comment
  • Disappointed By Apple's Yield? Think Again [View article]
    Great to hear from a long-time reader, Alpha! Thanks for the kind words. :)
    Mar 19 09:15 PM | Likes Like |Link to Comment
  • Disappointed By Apple's Yield? Think Again [View article]
    rubicon is right, the effective repatriation tax isn't going to be the 35% number that's so frequently thrown around, taxes paid to foreign governments can be claimed for credit and most certainly aren't 0%. The government knows that hundreds of billions of dollars cash returned home is just what the doctor ordered for the economy, but they also don't want to give up their massive potential tax windfall. What we have here is a classic standoff. It'll be interesting to see who blinks first.
    Mar 19 07:36 PM | Likes Like |Link to Comment
  • Disappointed By Apple's Yield? Think Again [View article]
    sld: Mathematically it makes no difference to Apple's intrinsic value, but I understand that the stock's high price per share presents a significant psychological barrier to less savvy investors. I doubt the combined purchasing power of these investors is enough to move the market, but more demand for what you own never hurts, so I certainly won't complain if Apple decides to split its stock (after all, it's done it before). But it's no big deal if it doesn't, there are a lot of more significant factors at play.
    Mar 19 12:04 PM | 1 Like Like |Link to Comment
  • How Is Dividend Growth Investing Like Rental Property Investing? [View article]
    Robert: You know, this is exactly how I explained it to my father just yesterday. He's been a real estate investor his entire life, only having gotten into stocks recently, so he still associates return exclusively with capital gains. When I explained to him how he can sell a house, invest the proceeds into a diversified portfolio of dividend paying equities, and generate an income stream that easily matches his rental income, is almost certain to grow faster over time, and isn't subject to frictional costs like property tax, insurance, or repair costs, it's like a lightbulb went on in his head.
    Mar 17 08:50 PM | 12 Likes Like |Link to Comment
  • Has Dividend Growth Kept Up With Inflation? [View article]
    I think the S&P was historically a much better proxy for dividend stocks than it is now. After all, the average yield of the index ranged from 3-5% for most of the century, it isn't until recently that it has dropped to the 1-2% range. Back in the old days, paying a dividend wasn't considered a privilege, it was a shareholder right to share in his company's profits. The rise of technology stocks changed that, but I'm willing to bet that as the current generation of tech companes mature, there will be a secular return to the old ways. Just Apple and Google initiating a dividend will by itself bring the yield of the S&P much closer to 3% than it is now.
    Mar 16 09:34 PM | 4 Likes Like |Link to Comment
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