Apple (AAPL) only looks cheap if it maintains its profit margins (35.3% in 2012), writes The Brooklyn Investor. Slapping Samsung's mobile operating margin of 18% on Apple's $181B in expected revenue this year then giving it a 10 multiple and adding back cash yields a value of $370/share. Margins might not decline right away (and revenues may increase to offset), but Apple bulls are fighting the powerful historical tendency (particularly for Apple) of excess margins getting competed away. [View news story]
True, but technology can be disruptive. It doesn't really apply to technology since you can always keep making a better product. I should have clarified I meant brands in regards to tech companies not for companies like P&G and Coke.
Apple (AAPL) only looks cheap if it maintains its profit margins (35.3% in 2012), writes The Brooklyn Investor. Slapping Samsung's mobile operating margin of 18% on Apple's $181B in expected revenue this year then giving it a 10 multiple and adding back cash yields a value of $370/share. Margins might not decline right away (and revenues may increase to offset), but Apple bulls are fighting the powerful historical tendency (particularly for Apple) of excess margins getting competed away. [View news story]
Yahoo (YHOO): Q1 EPS of $0.38 beats by $0.13. Revenue of $1.07B misses by $0.03B. Shares +1.1% AH. (PR) [View news story]
Isn't Marissa Mayer the one who banned mothers from working home and it made it difficult for them to be at home with their children. However, she ended up building a nursery connected to her office for her baby.
Mr. Market Loves SL Green Realty Better Than Me, But I Still Love New York [View article]
Brad, whats going on with Empire Realty IPO? I have been trying to find as much information as I can. I hear the Malkins are still trying to rally support.
SAIC: A 7.5% Special Dividend, A 3.5% Yield, And Limited Sequestration Cuts [View article]
The stock is up around 70 cents after reporting. I believe it's not just due to the dividend, it is also because investors were so pessimistic about the sequestration cuts. Earnings and guidance show that the DoD are not really going to have a material impact on earnings. I would definitely buy on a pullback once investor excitement wears off.
Facebook Valuation Model Shows Stock Is Worth Less Than $20 [View article]
I think you misinterpreted the article. Facebook will always make money. This is no question about it. In the end, stocks are based on valuation. I believe Facebook will grow earnings, but nowhere near the levels that the current valuation shows.
A Stable 9%+ Yield That Investors Should Have In Their Portfolio [View article]
Exactly, Dividend Don. The dividend distribution has been stable, as far as share price goes, that can change up and down, but a true dividend investor should ignore those moves.
Apple Needs To Spend Cash On R&D, Not Special Dividends [View article]
I think the biggest concern for AAPL shareholders is that we just don't know what to expect for the future. The company is still heavily relying on smartphones. We know about the iTV and iWatch, but TV has always been a low margin business, unless Apple has a plan up its sleeves. As for the iWatch, well not much has been said about this.
Apple Needs To Spend Cash On R&D, Not Special Dividends [View article]
Agreed, they have plenty of cash for marketing, R&D, and dividends. I am just saying there is still room for R&D improvement. Do I think Apple will need $20 billion a year for R&D? Absolutely not, but doubling/tripling it is sufficient enough.
Apple Needs To Spend Cash On R&D, Not Special Dividends [View article]
I apologize, I should have phrased it better. Obviously with a $140 billion+ in cash, the company could easily do both. I meant to say there should be a clear focus on R&D spending. They are very light in R&D spending.
Apple Needs To Spend Cash On R&D, Not Special Dividends [View article]
The amount may vary, but the important information is that the S3 clearly has more battery life. In terms of talk time, Apple has up to 8 hours and S3 has up to 10-12 hours.
It's often been suspected, but now the Attorney General confirms the country's largest banks are too big to effectively prosecute. Eric Holder testifying before a Senate committee: "It does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the (economy)." [View news story]
The issue with it is, the government had a huge hand in allowing the banks to get this big. Clinton allowed investment banks and commercial banks to merge. Then during the financial crisis, the government helped J.P. to take on Bear, BofA to take on Merrill, Wells Fargo/Wachovia, etc. Essentially, the government made these banks bigger in order to absorb a hit from toxic assets.
BlackBerry To Take A Hit On Gross Margins, But Z10 Prospects Still Good [View article]
Michael,
Good article. I submitted mine before your article published so didn't get a chance to look at it before. I wasn't necessarily comparing prices between different smartphones. I was going off the other news piece about monthly price drops for Carphone Warehouse and Vodafone. I quoted Faucette because I wanted to bring attention to the fact that is own analysis didn't make any sense. Sales figures are still strong and market share is rising. I made a mistake by assuming he knew what he was talking about regarding margins. I am in the industry and know many sell-side analyst and I never heard of a single one making outlandish false claims, more often then not, the claims are just a matter of opinion. So naturally I assumed he had evidence to back his claim. I highly recommend you get a hold of him though. I am sure he would be interested in your article.
Apple (AAPL) only looks cheap if it maintains its profit margins (35.3% in 2012), writes The Brooklyn Investor. Slapping Samsung's mobile operating margin of 18% on Apple's $181B in expected revenue this year then giving it a 10 multiple and adding back cash yields a value of $370/share. Margins might not decline right away (and revenues may increase to offset), but Apple bulls are fighting the powerful historical tendency (particularly for Apple) of excess margins getting competed away. [View news story]
Apple (AAPL) only looks cheap if it maintains its profit margins (35.3% in 2012), writes The Brooklyn Investor. Slapping Samsung's mobile operating margin of 18% on Apple's $181B in expected revenue this year then giving it a 10 multiple and adding back cash yields a value of $370/share. Margins might not decline right away (and revenues may increase to offset), but Apple bulls are fighting the powerful historical tendency (particularly for Apple) of excess margins getting competed away. [View news story]
Yahoo (YHOO): Q1 EPS of $0.38 beats by $0.13. Revenue of $1.07B misses by $0.03B. Shares +1.1% AH. (PR) [View news story]
Mr. Market Loves SL Green Realty Better Than Me, But I Still Love New York [View article]
Short Gold As The Economy Gets Better, $1,400 Price Target Likely [View article]
SAIC: A 7.5% Special Dividend, A 3.5% Yield, And Limited Sequestration Cuts [View article]
Facebook Valuation Model Shows Stock Is Worth Less Than $20 [View article]
A Stable 9%+ Yield That Investors Should Have In Their Portfolio [View article]
A Stable 9%+ Yield That Investors Should Have In Their Portfolio [View article]
Apple Needs To Spend Cash On R&D, Not Special Dividends [View article]
Apple Needs To Spend Cash On R&D, Not Special Dividends [View article]
Apple Needs To Spend Cash On R&D, Not Special Dividends [View article]
Apple Needs To Spend Cash On R&D, Not Special Dividends [View article]
It's often been suspected, but now the Attorney General confirms the country's largest banks are too big to effectively prosecute. Eric Holder testifying before a Senate committee: "It does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the (economy)." [View news story]
BlackBerry To Take A Hit On Gross Margins, But Z10 Prospects Still Good [View article]
Good article. I submitted mine before your article published so didn't get a chance to look at it before. I wasn't necessarily comparing prices between different smartphones. I was going off the other news piece about monthly price drops for Carphone Warehouse and Vodafone. I quoted Faucette because I wanted to bring attention to the fact that is own analysis didn't make any sense. Sales figures are still strong and market share is rising. I made a mistake by assuming he knew what he was talking about regarding margins. I am in the industry and know many sell-side analyst and I never heard of a single one making outlandish false claims, more often then not, the claims are just a matter of opinion. So naturally I assumed he had evidence to back his claim. I highly recommend you get a hold of him though. I am sure he would be interested in your article.