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Haris Basit

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  • A Tale Of Unbridled Optimism [View article]
    The most expensive Men's Swatch watch on their web site is about $200. And the margins on that are probably not great due to low volumes and a lot of mechanical parts that don't lend themselves to the same economics of scale that chips do. I think iWatch will be a lot more expensive to buy and much cheaper to make. Non-invasive glucose measuring is possible and available using near infrared spectroscopy -- not sure if the iWatch will have that but it is certainly not a dream. How can optimism be so sky high when AAPL price is so reasonable? It is not wise to draw a conclusion on market optimism based on replies to a seeking alpha article -- that is like living on a small planet orbiting an obscure star and saying you are in communication with the creator of the universe.
    Jun 25 01:16 AM | Likes Like |Link to Comment
  • Apple In India - The 'Mercedes' Argument Does Not Make Sense [View article]
    Many excellent critiques of this article in the comments, especially by Marv09. I would like to add that the author is wrong about Hyundai and Mercedes. There are Hyundai cars that are more powerful, have more luxury features, a better record for reliability and dependability than Mercedes offerings. To top it off these Hyundai cars sell for far less than their Mercedes competitors. The thing that Hyundai lacks is the reputation of a luxury brand. Most people who buy Mercedes buy it because they want others to know they have the money and success to afford a Mercedes. A friend of mine who purchased a Hyundai after an extensive analysis of objective criteria realized too late that he was embarrassed to park it next to his colleagues Mercedes and BMWs at work. He sold the Hyundai and bought a high end Mercedes instead when he finally realized that the primary thing he was seeking was not objective car specs but the outward display of his success that comes from a lavish expense. Mercedes and Apple can only harm this unfair advantage by building low cost products. I would also add that Apple, unlike Mercedes, does still objectively have the better product.
    Jan 1 03:36 PM | Likes Like |Link to Comment
  • Apple Would-Be Shorts: Bide Your Time, Apple's Run Will Be Over Soon Enough [View article]
    The author points out what all of us know to be true. That AAPL's valuation depends on being able to sustain their margins based on their brand. The brand is partially (many might say primarily) based on the products themselves. However, where I think the author's thesis disagrees with AAPL bulls is the ability to sustain margin over the long run based on brand.

    AAPL bulls, of which I am one, point out that the Mac has sustained a high margin for decades against the Microsoft/Intel duopoly. Also, brands like Mercedes, BMW, Nordstrom and others have maintained high selling prices for decades with functionally identical products to Chevy and Wallmart. You can just as easily make fun of someone on the street for thinking that a shirt from Wallmart is a new design from Paris or Milan. It doesn't change the fact that luxury brands exist and make money for decades based on differences that many consider silly.

    In the end having a stellar brand and a tight relationship with customers is the most sustainable long term business asset possible. It provides a platform for an endless number of products and services in the future. You just have to be careful that the products don't sully the brand.
    Nov 28 01:26 PM | 5 Likes Like |Link to Comment
  • The Austrians Are Right - Inflation Is Coming [View article]
    The author should have pointed out the bank's excess reserve issue at the top of his article and greatly shortened the article. Even if this money does leave the bank's books and enter the economy the level of inflation will be largely determined by the distribution of the money. If 99% of it goes to 1% of the population inflation will remain very low -- except in luxury goods and equities. If it is distributed more evenly then inflation of everyday goods and services is likely. Allegiance to a antiquated analytical scheme such as Austrian economics is bordering on irrationality.
    Nov 25 12:25 PM | 11 Likes Like |Link to Comment
  • Samsung Is Apple's Worst Nightmare [View article]
    Chances are the sapphire is for their iWatch or some smaller device than a phone -- at least initially.
    Nov 7 04:44 PM | 1 Like Like |Link to Comment
  • Samsung Is Apple's Worst Nightmare [View article]
    As a person with a deep semiconductor background I know where you are coming from and also how completely wrong you are. Should Apple also buy aluminum smelting companies? Hardware components are commodities and the primary difference is in the software, system level hardware and experience. If Google decides to drop Samsung from Android all their hardware expertise would make Samsung resemble Foxconn. Google is the company that Apple has to worry about -- not Samsung. Repeat after me -- hardware is a commodity.
    Nov 7 01:01 PM | 21 Likes Like |Link to Comment
  • Apple Is Slowly Rotting: Rosy Financials Mask Competitive Disadvantage And Souring Future [View article]
    Apple phones are the cheapest -- at least in the US. You can often sell your old iPhone for about the price of a new subsidized phone. Old android phones are worth almost nothing so you are forced to come up with the entire subsidized amount on your own.
    Oct 27 12:01 PM | 6 Likes Like |Link to Comment
  • Tesla: Mr. Musk's Wild Ride At Your Expense [View article]
    Agreed. Let's not invest in industries that received or are receiving significant financial support from the government. Let's see that includes arms contractors, pharmaceutical companies, hospitals, utilities, big banks, fossil fuel companies, renewable energy companies, auto companies, airlines, any consumer device that includes GPS or CDMA, agricultural concerns, trucking companies, mining and other extraction industries. Countries with unfettered capitalism do exist -- this experiment has been done. Check out Pakistan as one of many examples.
    May 22 05:20 PM | 9 Likes Like |Link to Comment
  • The Massive Underperformance Of Apple Vs. Amazon [View article]
    This article shows the truth of the the quote supposedly by John Maynard Keynes: "The market can remain irrational longer than you can remain solvent." The people that figure out when to short AMZN will make out very well. In my opinion it is not a matter of if but when.
    Mar 5 06:58 PM | 8 Likes Like |Link to Comment
  • The Real Obstacles To Increasing Apple's Share Price [View article]
    You bring out a good point of losing employees or attracting the right talent if employee stock options become uninteresting. I think this is a very serious problem that they are probably already facing at a limited level.
    Feb 18 12:41 PM | 1 Like Like |Link to Comment
  • In Defense Of Apple: Battling The Mounting Hysteria [View article]
    If it is not about margins, guidance or analyst forecasts then why did the stock price change so rapidly when these were announced? Oh, it must have been the chart that changed at 4:30PM on Wednesday. If AAPL had announced $47B guidance for Q2 the stock would likely be up. Technicians are like astrologers who know how to calculate the positions of the planets but assign crazy interpretations to them.
    Jan 25 08:50 AM | Likes Like |Link to Comment
  • Westport Innovations Discussion On Cummins Conference Call [View article]
    With communication skills like that the Cummins CEO should not be allowed near investors or customers. But he said nothing that should change the minds of WPRT investors. I am long WPRT.
    May 3 12:03 PM | 2 Likes Like |Link to Comment
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