Agreed! Please short Apple and tell all your fund buddies to do the same. Why? Because I want Apple to buy as much stock as they can with their buyback money while I continue adding to my position.
I love people like David Trainer & Company. They allow me to buy great companies on sale.
See you at $1,000 per share in less than 5 years, David!
Julian Robertson's Tiger Management unloaded the 42K Apple (AAPL) shares the firm still had going into Q1. Tiger, which has owned Apple for years, had pared its stake from 101K in Q4. On the other hand, Tiger initiated positions in Dunkin' Brands (DNKN - 546K shares), Monsanto (MON - 192K), McGraw Hill (MHP - 408K), and H&R Block (HRB - 849K). AAPL -1.1%. (13F) (Q4 hedge fund sales) [View news story]
Silly move. Apple is a much better company than all of those combined.
Apple (AAPL) is at risk of losing one of its key competitive advantages over Google’s rival Android system as application developers say they are becoming more constructive with Google's (GOOG) Android smartphone platform. GOOG's app store has long lagged AAPL's iPhone, however the sheer scale of Android, which now accounts for three out of every four smartphones sold, is commanding developers’ attention, despite their continuing difficulties in monetizing the platform. [View news story]
"Apple's U.S. smartphone share at 53.3 percent, thanks in part to strong sales of the iPhone 5. That number was up from 35.8 percent a year prior. And it's likely to grow."
Cisco Valuation Suggests A Reality Check With A Warning [View article]
Here's some simple numbers for you:
Current share price = $16.11 Cash on hand per share = $9.19
Effective purchase price = $6.92 (16.11 - 9.19)
Past 5yr Average EPS = $1.20
Years to recoup full investment of $6.92 = 5.77 years (6.92 / 1.20)
If you had the $86.3 Billion required to purchase Cisco in its entirety, you'd effectively pay $37.05 Billion (Current Market Cap minus Cash on Hand) and it would only take you 5.77 years to recoup your purchase price of $37.05 Billion. At the end of 5.77 years you would have an entire Cisco Company to sell for zero cost.
Jefferies' Peter Misek cuts his price target on Hold-rated Apple (AAPL) to $420 from $500. He's slashing his revenue numbers and seeing about a 25% chance the company misses Q1 guidance after Jefferies' recent supplier checks. "Historically when handset makers fall out of favor, they fall faster/further than expected." Shares -0.7% premarket. [View news story]
Who cares. It's a cheap plastic phone with a glitchy OS.
Even with this little $2B setback, JPM is set to make record profits for 2012.
Subtract cash on hand from JPM's market cap and you are left with an effective market cap of $66B ($121-55)
Let's say you purchased JPM in its entirety right now - you have $121 Billion and you buy the entire company. Again, your effective purchase price is $66B once you subtract out the cash. Now let's say JPM only makes $10B in profits per year for the next decade. At that rate, it would only take you 6.6 years to get all your investment back AND now you have an entire JPMorgan & Chase Co that cost you $0 after 6.6 years and makes you $10Billion in profits per year.
JPM is one of the best bargains out there if you have balls big enough to buy.
Over 40B apps have now been downloaded from the App Store, and nearly 20B were downloaded last year, Apple (AAPL) declares. The company adds developer payouts have topped $7B, and that there are over 500M active iTunes accounts (very useful for a mobile payments solution if Apple ever wants to launch one). The App Store still has a big edge on Google Play when it comes to app monetization, though the latter has been growing faster lately. [View news story]
"There are limits. Once everyone has an iPhone, where does further growth come from?"
Where would you like me to begin...
1. New iPhone sales on upgrade cycle 2. Complimentary iPads & Macs from satisfied iPhone customers 3. Apple TVs with Paid Subscription Services 4. Mobile Wallet - Tie your Debit or Credit Cards to your iTunes Account for Global Payments
Apple (AAPL): FQ1 EPS of $13.81 beats by $0.37. Revenue of $54.51B (+18% Y/Y) misses by $220M. 47.8M iPhones, 22.9M iPads, 4.1M Macs, 12.7M iPods. Expects FQ2 revenue of $41B-$43B, below $45.6B consensus. Shares -4.3% AH. (PR) [View news story]
On a comparable basis, earnings for this quarter would be 7.6% more:
$14.86 per share on $58.65B of revenue.
Looks like rock solid earnings to me...
Danger Zone For This Week: Apple [View article]
I love people like David Trainer & Company. They allow me to buy great companies on sale.
See you at $1,000 per share in less than 5 years, David!
Julian Robertson's Tiger Management unloaded the 42K Apple (AAPL) shares the firm still had going into Q1. Tiger, which has owned Apple for years, had pared its stake from 101K in Q4. On the other hand, Tiger initiated positions in Dunkin' Brands (DNKN - 546K shares), Monsanto (MON - 192K), McGraw Hill (MHP - 408K), and H&R Block (HRB - 849K). AAPL -1.1%. (13F) (Q4 hedge fund sales) [View news story]
Apple: How To Admit You're Out Of Ideas [View article]
They're buying back $60 billion worth of shares over 32 months.
Do the math!
'Cannibalization' Isn't Really Bad News For Apple [View article]
Apple (AAPL) is at risk of losing one of its key competitive advantages over Google’s rival Android system as application developers say they are becoming more constructive with Google's (GOOG) Android smartphone platform. GOOG's app store has long lagged AAPL's iPhone, however the sheer scale of Android, which now accounts for three out of every four smartphones sold, is commanding developers’ attention, despite their continuing difficulties in monetizing the platform. [View news story]
Source: http://cnet.co/Uwwlgf
Cisco Valuation Suggests A Reality Check With A Warning [View article]
Current share price = $16.11
Cash on hand per share = $9.19
Effective purchase price = $6.92 (16.11 - 9.19)
Past 5yr Average EPS = $1.20
Years to recoup full investment of $6.92 = 5.77 years (6.92 / 1.20)
If you had the $86.3 Billion required to purchase Cisco in its entirety, you'd effectively pay $37.05 Billion (Current Market Cap minus Cash on Hand) and it would only take you 5.77 years to recoup your purchase price of $37.05 Billion. At the end of 5.77 years you would have an entire Cisco Company to sell for zero cost.
Long CSCO (if you couldn't already tell)
Jefferies' Peter Misek cuts his price target on Hold-rated Apple (AAPL) to $420 from $500. He's slashing his revenue numbers and seeing about a 25% chance the company misses Q1 guidance after Jefferies' recent supplier checks. "Historically when handset makers fall out of favor, they fall faster/further than expected." Shares -0.7% premarket. [View news story]
Apple's Cash Hoard Is An Asset, Not A Liability [View article]
Instead, Apple should continue rewarding the long term holder and raise the dividend as they see fit.
Apple's Earnings Fall Is Completely Unjustified [View article]
Why You Need To Buy JPMorgan [View article]
Subtract cash on hand from JPM's market cap and you are left with an effective market cap of $66B ($121-55)
Let's say you purchased JPM in its entirety right now - you have $121 Billion and you buy the entire company. Again, your effective purchase price is $66B once you subtract out the cash. Now let's say JPM only makes $10B in profits per year for the next decade. At that rate, it would only take you 6.6 years to get all your investment back AND now you have an entire JPMorgan & Chase Co that cost you $0 after 6.6 years and makes you $10Billion in profits per year.
JPM is one of the best bargains out there if you have balls big enough to buy.
Apple's Earnings Fall Is Completely Unjustified [View article]
Apple will continue to flourish without him.
Over 40B apps have now been downloaded from the App Store, and nearly 20B were downloaded last year, Apple (AAPL) declares. The company adds developer payouts have topped $7B, and that there are over 500M active iTunes accounts (very useful for a mobile payments solution if Apple ever wants to launch one). The App Store still has a big edge on Google Play when it comes to app monetization, though the latter has been growing faster lately. [View news story]
Where would you like me to begin...
1. New iPhone sales on upgrade cycle
2. Complimentary iPads & Macs from satisfied iPhone customers
3. Apple TVs with Paid Subscription Services
4. Mobile Wallet - Tie your Debit or Credit Cards to your iTunes Account for Global Payments
Apple: Too Far, Too Fast? [View article]
Apple: Too Far, Too Fast? [View article]
For now, I plan on continuing to add to my position at 25 share blocks while Apple sits below $500.