Michael Anderson

Michael Anderson
Contributor since: 2010
exactly. While Im not overly positive on the practice of MLM, many are legit businesses and a decent way for people to earn money. Many go into it and think there is no effort involved, reason for part of the high failure rate. With it, each individual is considered self employed. Stated is the 99% failure rate, but isnt the failure rate in the standard business world that high or close?
There are many holes in Miller and those can be seen by some of the major issues in the filings, particularly the quarterly and yearly statements. After really looking at all of the details, on top of the fact that it will take a ton of money, and probably dilution, its difficult to trust management and that true value can really be attained with this company
LEXG is one of the biggest Pump and dumps ever. I cant understand this being a published article due to many facets
Great article. I was thinking in the same lines as you, but you put in a much better way than I could have. Ive been considering JCP very recently as Ive noticed the change, mainly in-store and with their marketing. I think its going to change from being a second or third option store, to more of a main shopping place for people. The image is definitely starting to change.
Im on the other end of the spectrum and think they should build up the cash for many more years. Then when things do slow and the pps isnt rising a great rate every year, it will provide a giant safety net. It will basically allow them to do whatever they want and most importantly do some good buybacks and dividends and only slightly dent it. The reward later in my opinion will be much great, especially since the pps rise has been excellent and should continue to be. And I dont think its wise to spend cash just to do it. Build it up and let the opportunities come and not rush into things.
It may be a short term top, I can agree with that, but long-term it will still continue to do great. Of course, over and over and over and over when people say that Apple will eventually slow, at some point that will be correct, but it is a ways away. Also, when that person that states over and over and over and over and over and enventually it happens, doesnt make that person correct as they were wrong every other time. Do not also forget the crazy amount of cash they will have built up in 3-5 years when growth isnt as amazing as it is now.
Be careful with this one. I used to be super bullish on this, actually many china stocks and wrongfully so. This is one I followed more than any other and there are many flags here.
I get what youre saying, but their hoard of cash at that point will be like no other and do almost whatever they want to reward shareholders. Its just now if you do it, you burn up the cash when not needed to as they are doing great and the pps will move on its own. Think 4 or 5 years down the road how many buybacks they will be able to do and/or dividends and still only dent that hoard. Thats why I think it is much better to wait to use the cash when needed. People want those things now, but its not good to use cash just to use it.
The great thing is, at some point when their growth does slow, that current cash of about $100 billion will be several times that, providing not only a huge safety net, but will have more than enough built up to reward shareholders big with buybacks and dividends. Is it a guarantee at that point they will do that? No, but it makes a lot of sense
I like the comparison : )
Very nice article. Your arguments and statements presented as facts, are supported with facts and quality information to back up what you state, instead of just stating something as is without providing a backbone to it.
Investments are much more than PE. I love using PE as a gauge and a tool, but it is still a very small part of what encompasses a quality investment.
Yes, I do agree with you about Apple though as it is silly cheap even after its recent rise. Their earnings are superb quarter after quarter after quarter with no signs of slowing down.
Im hoping the bears come in and take it down so I can get in cheap as the earnings were still good and there is still a ton of success in the future for the company. The growth isnt going away anytime soon
Like every year preceding, this is going to be another monster year for AAPL while it climbs towards that $1 trillion mark, which I think it will there over the next 3 or 4 years. To me, there isnt much of a reason AAPL cant double, but they also have to start adding to their product portfolio. Other areas are just getting started as they are going to open up more and more stores as well. They still have huge opportunities in all areas, even those that carry most of their revenues.
Definitely Mickey. Unfortunately, it is at a point where we have to see what analysts are thinking or doing because they hold so much in terms of where the pps can go on a stock, whether they upgrade or downgrade or whether a company hits their estimates and investors pay attention to that, in my opinion way too much, but it is there. It also seems that a lot of the things that investors focus on from analysts, usually have a short term effect for a strong company ie Apple.
For analyst estimates, for the analyst, they are important to have for their own gauge, but again, it shouldnt be the main focus for earnings for many investors, which it is.
Im definitely a huge Apple fan, its hard not to be. I think Google is in a great position too and if there is a steady shortterm decline, I would heavily consider getting in. Even at the current pps, it is a good investment, but I do like AAPL here more, even after its recent rise.
It usually rises gradually after
Google is still a high growth company, growing sales still at 25% plus each quarter. I do agree with the earnings part of it and would be the thing to be scrutinized, not the fact that they missed estimates. It was still a good quarter for an undervalued large cap growth stock.
I actually like Microsoft too, but that quarter was not much to get excited about. They are undervalued, but their growth is nothing special.
I think Google has much more upside with some nice growth ahead still and is an opportunity on a dip, whereas if MSFT rises a little more, it is much more difficult to touch. Also, thanks for commenting.
Good article. I definitely agree and see many investors investing in a company mainly because of the yield and not focusing enough on the growth of the stock. Obviously, if a stock falls while paying a dividend, it defeats the purpose. On actual quality stocks that pay dividends, it can be nice to add on a downturn as one's research can show that stock appreciating over time and not just the yield
Thats why a tight stop is important. Definitely surprised in the trading and with the long delay in trading, I stayed away and came back and it was at $9.50. Momentum is key in these things and can usually tell quickly. Good luck, if anyone is still invested in this.
Thanks for the comment. It does appear that these IPOs tend to trade much higher than they should and eventually come down to earth. I will definitely take a look at your report.
IPO was also priced at $10 it appears.
Good point and definitely could be an advantageous strategy to add to it.
Thanks for the comment. It has been a crazy last year and a half and a ton of ups and downs, especially based on my style. Also, it is important to learn from the investments that end up being losers. Best of luck to you.
Lol. I dont know who is going to hold a triple leveraged ETF longterm, thus the reason I stated it is important to put in stops and watch it carefully. They are only short-term trading tools. Thanks for the comment
Yes, its definitely a big hit. I agree with you as it is a big reason to remain cautious, as 30% is significant. I dont see it doing much for awhile and cant see it getting hit too much harder as they are still extremely undervalued, even with that decrease. Its just kind of dead money at the moment, but I think they are a strong company and is worth adding on any big dips. I was definitely bullish on it prior and even had an article publish the morning of their news, bad timing, lol. It wont crush them, but at this time, there are now many more plays. Good luck.
This is an excellent and informative article. Thanks.
nice comment boomer, I noticed some of the same things, but still havent had the chance to look into it enough.
Yes, sorry, that is what I meant.
I think your article is good and raises an interesting point, but I think it also helps to show why it is a good short if its just hanging on earnings growth, while negatives are coming along the way. So, it appears that it shouldnt be able to hold on to that one thing, which is important, but could slow down as well. I dont think the moment is there like it was and it seems as though some changes will need to be made. The short case is better, at least for the short to mid term
This is a nicely put together article and the type of articles that should be seen on here more often, in terms of writing, effort, and information. It actually is going to get me to do some follow up research of my own on the company. thanks.
I like your analysis on both ends of the spectrum, but I think you gave better reasons to just avoid it
"By the way, whether you like it or not or acknowledge it or not, by being bullish on Apple, you are debating the market."
Really? Because it seems as though Apple outperformed the market by a wide margin in the last year
The issue isnt that the stock is doing poorly, its just that its pps has slowed from what it was doing and isnt trading where many think it should, basically because of its valuation. It hasnt stopped rising by any means and there is nothing to show that it will not continue to rise