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George Acs  

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  • I Bought Apple [View article]
    While Carl Icahn's active buying isn't a guarantee of prices going higher, I would certainly rather have him on my side than on the other side.

    Apple's own buybacks will just do what most everyone agrees that buybacks do. They offer price support.

    With my preference for a short term horizon those are a pretty good combination to offer a level of comfort moving forward.
    Sep 12, 2013. 01:11 AM | Likes Like |Link to Comment
  • I Bought Apple [View article]
    I'm glad you had a good reason for RUTH.
    Sep 11, 2013. 11:22 PM | Likes Like |Link to Comment
  • I Bought Apple [View article]
    You have much more tolerance for risk than I have. For me not selling calls was my risk event for the year. I make about 2,000 trades each year, most of those being the sale of options on stocks I own, but I am grateful having others around who have the temperament to buy those options from me.

    But there's no denying that the market's low volatility has made longer term deep in the money options relatively inexpensive, making them attractive vehicles even if there is some brief downturns.

    Tim Cook is certainly no one's fool. I think that when he and Carl Icahn have their dinner it may be one of those occasions that Icahn walks away thinking highly of the CEO
    Sep 11, 2013. 11:21 PM | 1 Like Like |Link to Comment
  • I Bought Apple [View article]
    Good luck. I ended up not maling the trade, but for a two day period, as this one is, I do like the 0.7% ROI in exchange for anything less than a 15% price drop.
    Sep 11, 2013. 11:10 PM | Likes Like |Link to Comment
  • I Bought Apple [View article]
    It's hard to characterize a one day precipitous drop as constituting a "down trend." That's true whether it is Apple or any other company that has had an established and credible past of earnings and performance.

    A fair amount of my investing centers around such companies that have experienced, what I believe to be exaggerated responses to bad news or are expected to demonstrate large reactions to known events.

    I am a PC user and do not use an iPhone. However, I also accept the fact that Apple product users have about 40 years of incredible loyalty to their brand. They are not likely to move to a Windows 8 machine any time soon, so to suggest that WIndows 8 us competition is a little short sighted.

    I'm also not convinced that people will consider the iPhone 5c as a less than adequate replacement for the iPhone 5, particularly when there is a large universe of older iPhone users as well as those that don't require all of the features and processors of a 5S.
    Sep 11, 2013. 10:17 PM | Likes Like |Link to Comment
  • I Bought Apple [View article]
    I'm not a user and only a periodic and opportunistic shareholder that has been very critical of Apple's changing position (without necessarily placing the blame at Tim Cook's feet).

    However, I think that opportunity can be fleeting & recurrent and may not have anything to do with larger themes or more long term time frames.

    I think that this is one of those moments that is ripe for opportunism. I may not feel that way in a week, but I may also no longer be holding shares in a week.
    Sep 11, 2013. 10:01 PM | Likes Like |Link to Comment
  • I Bought Apple [View article]
    The cynic may suggest as you have, that an adverse report could result in a favorable price for share accumulation. The sell side and the buy side can be intimately related.

    However, in general, I believe that industry wide there is greater value placed on demonstrating gains than there is from protecting assets from adverse conditions.
    Sep 11, 2013. 09:56 PM | Likes Like |Link to Comment
  • I Bought Apple [View article]
    I'm not quite as pessimistic as that to believe that a deal that currently adds no earnings to the bottom line, would send Apple shares to a P/E of about 8 if the deal isn't consummated.

    That is what you are suggesting would currently be the case without the deal being baked into the price. That contention isn't borne out in at least the past 5 years of price and earnings data.
    Sep 11, 2013. 09:45 PM | Likes Like |Link to Comment
  • I Bought Apple [View article]
    Apple's continually increasing cash horde is the metric that would suffice for most.

    While Samsung has achieved market it is Apple that is achieving profits.

    The component cost for a new 5c is nearly $75 less than for a Samsung Galaxy S4. You can afford to sell fewer than the competition.

    Again, it is as Tim Cooks says, it's not the size of the market share, it's whether you have enough money to control your own destiny.
    Sep 11, 2013. 07:51 PM | Likes Like |Link to Comment
  • I Bought Apple [View article]
    Which is it? Do upgrades and downgrades have a "direct effect on stock prices" or do investor reactions have the direct effect?

    Clearly the analysts can only have an indirect effect, even if their call results in trading by their own firm. Their pronouncements are sterile until someone acts upon them.

    Given the lack of predictable outcome, you would have to agree that upgrades and downgrades have little validity, yet they still have clout. That is entirely irrational, yet predictable behavior on behalf of many investors.

    For analysts it's very inconvenient that people like you can remember their ping pong like recommendations, running hot one second and then cold the next. The are able to hide behind vague time frames and have absolutely no interest in the integrity of accounts, even client accounts, that get whipsawed by their exercises. They often simply value their ability to see markets respond to their judgments.

    Now the real cynic would say that downgrades by sell side analysts create the opportunities for their buy side clients
    Sep 11, 2013. 07:34 PM | 1 Like Like |Link to Comment
  • I Bought Apple [View article]
    Well, I certainly agree that the market gets it wrong on intra-day and on a day to day basis, but I'm not certain I agree with your synopsis. especially as the time basis becomes longer, which is when the market does tend to get things right.

    Most people don't buy a stock because they believe that the market has gotten its valuation wrong. Rather they buy the stock with future value in mind. They simply believe that shares will be worth more in the future and are agnostic regarding whether the market is right or wrong. In fact, they hope that the market will be right when it is time to sell, because it's only if the market gets valuation correct that they will be able to realize a profit.
    Sep 11, 2013. 07:16 PM | 1 Like Like |Link to Comment
  • I Bought Apple [View article]
    I was a little more roundabout in my questioning of the validity of the statement regarding European sales.

    Ultimately, Tim Cook's comment is along the lines of an old Tolstoy short story "How Much Land Does a Man Need?" Cook is smart enough to know that he doesn't need it all, just enough.
    Sep 11, 2013. 07:09 PM | 1 Like Like |Link to Comment
  • I Bought Apple [View article]
    I don't really scoff at the "mania," that's real. What I still wonder about is whether the iPhone offers any advantage, in hardware or software, for most users over Droid, Windows or even Blackberry smart phones.

    I'm not shy about technology or accepting new technologies, but I remain an iPhone holdout, perhaps because I already do much of my day's work on my current phone and am very satisfied with the collection of apps that allows me to function as if I was in an office.
    Sep 11, 2013. 07:06 PM | 1 Like Like |Link to Comment
  • I Bought Apple [View article]
    Thanks. Your preaching to the converted. You may have noticed that I mentioned in the article that I almost never hold shares without selling calls at the same time.

    I write a weekly series here at SA that looks at the coming week's potential covered call trades.

    When I wrote the article about Carl Icahn and Apple, I made that comment and even one of the SA editors was surprsied by it

    http://seekingalpha.co...
    Sep 11, 2013. 06:33 PM | 1 Like Like |Link to Comment
  • I Bought Apple [View article]
    You're absolutely right. Tim Cook has been managing the company the way in many critics wanted him to manage. For that he receives no recognition (other than from you).

    While he may not be the best CEO when it comes to high profile appearances, he is an excellent manager at a time when Apple was poised for product disappointments.

    It actually reminds me of when Ben Bernanke assumed the Federal Reserve Chairmanship from Greenspan. The comparisons were brutal. But then it became clear that his predecessor may have created the seeds for the financial calamity that ensued. Not that Steve Jobs created calamity, but he did create incredibly high expectations that were as sustainable as 80% quarter to quarter growth seen in the dot com days.
    Sep 11, 2013. 06:08 PM | Likes Like |Link to Comment
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