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  • In Defense Of Apple: Battling The Mounting Hysteria [View article]
    Investing, at least when based on fundamental, non-technical analysis, always involves a degree of belief. The challenge is to base that belief on an impartial assessment of a company's financials and its product roadmap. Our view is that Apple's financial condition is solid, as based on its balance sheet and earnings, and that its existing product portfolio is performing better than the company's critics believe. There have been many articles that suggest Apple is now the next Microsoft, the next RIM, among other things, and it is that kind of hyperbole that we wish to avoid. There is a difference between forecasting based on how one feels about a company and what an analysis of its financials and its existing/future products & services reveals.
    Jan 25 12:09 PM | 1 Like Like |Link to Comment
  • In Defense Of Apple: Battling The Mounting Hysteria [View article]
    The iPod mini meant more to Apple in 2004 than the iPad mini did in 2012; it helped place Apple into millions more households than the regular iPod. The iPad mini, while certainly a new product, was not on the same relative level in 2012 as the iPod mini was in 2004
    Jan 24 10:45 PM | 1 Like Like |Link to Comment
  • In Defense Of Apple: Battling The Mounting Hysteria [View article]
    On the call, CFO Peter Oppenheimer stated that Apple's operating expenses will be between $3.8-$3.9 billion for Q2 2013
    Jan 24 09:31 PM | 3 Likes Like |Link to Comment
  • In Defense Of Apple: Battling The Mounting Hysteria [View article]
    AAPL closed today with a market capitalization of around $423 billion, and is still holds the world's largest market cap. Will it be $4 trillion in 10 years? Probably not, that would imply an almost 10-fold increase over a decade. But Apple will likely be worth much more than $450 per share in 10 years.
    Jan 24 07:10 PM | 7 Likes Like |Link to Comment
  • Netflix Q4 Earnings: Solid Results Confirm The Company's Long-Term Potential [View article]
    Regarding content obligations, we addressed the accounting regarding those liabilities in our last article on NFLX (http://seekingalpha.co...). As for cash flow, payments for original content are not things that occur every single quarter, but are one-off cash costs that need to be paid when NFLX produces new episodes of a series. Not every quarter will feature such payments, and NFLX forecast that FCF will improve through the remainder of 2013.
    Jan 24 01:02 PM | Likes Like |Link to Comment
  • Previewing Apple's Earnings Through The Eyes Of Its Suppliers [View article]
    The January 17 date was based on forecasts from Reuters, which used historical data to forecast when SWKS would next release its earnings. SWKS chose to report Q4 earnings later than it has in prior years.
    Jan 23 11:09 AM | Likes Like |Link to Comment
  • Clearwire: With DISH Entering The Fray, A Higher Offer From Sprint Is On The Way [View article]
    Under normal circumstances, that is the case. However, this deal was structured with the specific requirement that it can only be approved with 75% of CLWR investors voting yes. A simple majority vote in favor is not enough in this case, likely to to Delaware law protecting minority investors.
    Jan 16 05:56 PM | Likes Like |Link to Comment
  • Clearwire: With DISH Entering The Fray, A Higher Offer From Sprint Is On The Way [View article]
    The break up fee is indeed $120 million, which Sprint must pay if its deal with CLWR isn't done before October 15, if the SoftBank deal collapses, or if either side terminates their agreement (http://reut.rs/11x0oZ2)
    Jan 15 10:31 AM | 1 Like Like |Link to Comment
  • Clearwire: With DISH Entering The Fray, A Higher Offer From Sprint Is On The Way [View article]
    That's exactly it. Many people assume that Clearwire will file for bankruptcy if Sprint does not take control of the company, when in fact that is not the case. The idea that they will file tomorrow is for illustrative purposes. Clearwire does not need the Sprint deal done as soon as possible. There is ample time to negotiate with both DISH and Sprint and extract a higher offer.
    Jan 13 03:27 PM | 2 Likes Like |Link to Comment
  • Clearwire: With DISH Entering The Fray, A Higher Offer From Sprint Is On The Way [View article]
    Looking at only CLWR's balance sheet yields a book value of $1.56 per share, and that assumes that the spectrum is sold off for only book value. Value in bankruptcy depends on 2 things: the value of spectrum, and the rate at which Clearwire is burning cash. If the company decides to file when its cash runs out, the value will be lower than if Clearwire decided to file tomorrow. It is likely that in a bankruptcy auction, Clearwire's spectrum would not have the Equtyholders agreement binding it, thereby allowing for a
    "cleaner" auction, which could bring out higher bids.
    Jan 13 12:31 PM | Likes Like |Link to Comment
  • Clearwire: With DISH Entering The Fray, A Higher Offer From Sprint Is On The Way [View article]
    That may not necessarily be the case. The problem for Sprint is that there is significant opposition to their bid from minority investors, and they will have a difficult time securing the necessary votes to get their own deal approved. Clearwire has seen enormous trading volumes since rumors of a deal began, and it is unclear exactly who owns the remainder of Clearwire's minority shares. For example, hedge funds that have bought up Clearwire stock could force Sprint to raise its bid because they hold the remaining votes Sprint needs. As for restructuring, Clearwire did not say that it was a guaranteed outcome if Sprint's bid fails, but rather that it is a possibility. The company still has many quarters of cash left, and no debt maturing for a few years, giving it enough time to come to a strategic solution.
    Jan 13 12:27 PM | 1 Like Like |Link to Comment
  • Buy Tesla Motors: Think Of It Not As A Car Company, But As A Luxury Indulgence [View article]
    While Tesla's roadmap does paint a pathway to being a mass market vehicle, that is not the case today. And that is perfectly acceptable. Tesla should do well based on its present ability to attract affluent consumers, giving it the capital needed to create the proper cars for its future target markets.
    Jan 9 01:30 AM | 1 Like Like |Link to Comment
  • Buy AOL: 2013 Will Be A Pivotal Year [View article]
    Patch has long been an albatross for AOL. However, management is committed to its Q4 2013 deadline of Patch becoming profitable, and if they can meet that goal, AOL's perception in the market could improve even more.
    Jan 4 12:44 AM | 1 Like Like |Link to Comment
  • Previewing Apple's Earnings Through The Eyes Of Its Suppliers [View article]
    Apple has released a list of suppliers in response to pressure from labor activists (http://bit.ly/zRjHQq). However, the list does not break down exactly what each supplier does for Apple, only that Apple does business with them.
    Jan 3 06:29 PM | Likes Like |Link to Comment
  • In Defense Of Herbalife: Arguments Against Ackman's Short Thesis [View article]
    While Ackman has a good track record, he is not infallible (no investor is). Ackman has also been long JC Penney, and at least for the time being, his thesis on JCP has been incorrect. Will he be right years from now? Perhaps. But there is no way to know for sure. A thesis isn't right or wrong based simply on who is delivering it. Warren Buffet has never bought a single share of Apple. Does that mean Apple should be avoided, even if arguably the greatest investor in the world doesn't own it?
    Dec 22 03:31 PM | 5 Likes Like |Link to Comment
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