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  • Apple: Hardware Innovation Is No Longer Enough [View article]
    I appreciate all the commentary. I would note that I hardware will continue to be a critical component of the Apple story going forward, but I adamantly believe that if hardware dominates the headlines, then you should sell your Apple stock. There will also be another competitor who can innovate and create hardware. It will take a mammoth effort to cut into the 800M people who use Apple iTunes or related software, and my point is Apple could easily do a better job monetizing this gold mine it sits on. I believe the company will monetize its users, and that is why one should be long Apple stock today.
    Aug 8, 2014. 01:30 AM | 1 Like Like |Link to Comment
  • Apple: Hardware Innovation Is No Longer Enough [View article]
    optimyst -

    My point is that Apple would have a higher base of users to monetize if they did not simply concede the low end market to Android.
    Aug 5, 2014. 10:40 AM | Likes Like |Link to Comment
  • Apple Faces A Problem And Increasing Prices Will Make It Worse [View article]
    Been a while since I commented on SA but can't really let this go unsaid. Apple is probably 2 years late to the party when it comes to embracing a larger phone. So are we to assume that Apple zealots, who have stood by the company/brand/ecosystem for years as other manufacturers have brought bigger and better phones to the market are now going to switch to Android if it costs them $300 instead of $200 to buy what will surely be the best phone to hit the market this year? This is a flawed argument.

    Just using rough math, if you assumed that Apple could sell the iPhone 6 for $100 more per unit, and that $80 of that $100 went to its EBIDTA line after accounting for selling costs, the company could sell ~30% fewer phones than they could if they sold it for $100 cheaper and get the same amount of EBIDTA. if you think 30% of the potential iPhone 6 buyers will walk away because of an extra $100 I have a Blackberry 10 phone to sell you.
    Apr 14, 2014. 11:00 PM | 6 Likes Like |Link to Comment
  • Consider Apple: A Gold iPhone 5S Will Save The Day [View article]
    Maybe I am just missing the fact that the vast majority of people put a skin on their phone, regardless of the color, to protect it against drops and other forces of nature....plenty of gold protective cover options out there already.
    Aug 26, 2013. 10:43 AM | Likes Like |Link to Comment
  • Consider Apple: A Gold iPhone 5S Will Save The Day [View article]
    As far as my comment about a larger screen...

    It is revolutionary only for Apple because they are so far behind the curve and trend of what users desire today.
    Aug 26, 2013. 09:31 AM | Likes Like |Link to Comment
  • Consider Apple: A Gold iPhone 5S Will Save The Day [View article]
    The verdict is still out on whether the iPad Mini will be a success. All it has been successful at so far is helping Apple to see its gross margin % plummet. Additional volume of unit shipments can only offset plunging gross margin %'s for so long.
    Aug 26, 2013. 09:29 AM | Likes Like |Link to Comment
  • Applephoria Is Translating Into Lost Opportunities For Investors [View article]
    Your welcome. The truth will set you free (or would have set some free when the stock was $30 higher when I wrote this a week ago)
    Jun 26, 2013. 08:56 AM | Likes Like |Link to Comment
  • Applephoria Is Translating Into Lost Opportunities For Investors [View article]
    Your point is well taken, which is why I the best way to make money from Apple going forward is to trade the stock, not blindly invest in at as a buy and hold vehicle unless you are doing so for the dividend.
    Jun 19, 2013. 03:27 PM | Likes Like |Link to Comment
  • Applephoria Is Translating Into Lost Opportunities For Investors [View article]
    drcarl -

    I am pretty clear that Apple remains a great investment for those looking for a stock to add to a dividend portfolio. My point is that those looking for capital appreciation on their investment, not just dividend income, have better options.
    Jun 19, 2013. 09:15 AM | 1 Like Like |Link to Comment
  • Turn Apple Into A Serious Income Investment Yielding Over 5% Annually [View article]
    venkat39 -

    Your correct. Poor choice of wording on my part. In my mind, I must have been thinking it is just a great opportunity to buy Apple at $400 if given the chance.
    Jun 12, 2013. 09:38 AM | Likes Like |Link to Comment
  • Turn Apple Into A Serious Income Investment Yielding Over 5% Annually [View article]
    Did you mean to say falling in price?

    If you want to own the stock then selling calls limits your upside with the chance your stock could get called away? You could sell the July $480 call for $2.50 (yields .05%...or about 6% annualized). The problem with this strategy is you have to put the trade on 12 times to annualize it, and then your return gets eaten up by the cost of 12 trades.
    Jun 11, 2013. 04:35 PM | Likes Like |Link to Comment
  • Turn Apple Into A Serious Income Investment Yielding Over 5% Annually [View article]
    caveat to my response - check with a tax professional

    my understanding is that writing a leap option, will always be taxed as a short term gain, regardless of it is for 9 months or 39 months.
    Jun 11, 2013. 12:49 PM | Likes Like |Link to Comment
  • Turn Apple Into A Serious Income Investment Yielding Over 5% Annually [View article]
    thanks for the ribbing on the "long winded" article. It is hard to fully explain the concept behind this investment strategy without giving those who might not be familiar with it the background on the strategy, risks, upside, downside, etc...

    Glad you agree with it
    Jun 11, 2013. 11:06 AM | Likes Like |Link to Comment
  • Turn Apple Into A Serious Income Investment Yielding Over 5% Annually [View article]
    The strategy is hedging in the sense that you want to be fully invested in Apple, with the $80,000 I used as an example.

    The hedge comes into play in that you can take a portion of your investment, and earn a return on it via the income generated from selling the put option. The hedge exists because that portion of your investment would allow you to buy Apple at $400 a share, compared to the $440 a share the stock is currently trading at, if the stock were to fall below $400. It would effectively average your cost basis in Apple down to $420 a share if you had the stock "put" to you from selling the put option.

    The upside is relative, and is in relation to how this strategy would perform if the stock were to fall to $400, compared to if you invested all $80,000 in purchasing common stock.

    If you invested all $80,000 in common stock, and Apple fell from $440 to $400, you would lose roughly ~10%, or $8,000, on your investment (excluding the dividend for a moment). If you invested only $40,000 in the common stock, you would still lose ~10% on that portion of your investment, which would be roughly $4,000. This would be offset by the option premium of $2,900 you would generate from having sold the $400 put option. So your net loss in the 50/50 scenario is only $1,100 (loss of $4,000 on stock + $2,900 put option premium).

    In one scenario you lose $8,000 and in the scenario I presented in the article you only lose $1,100, assuming the stock is at $400.01 when the option expires in April 2014.

    Hope that helps.
    Jun 11, 2013. 10:56 AM | Likes Like |Link to Comment
  • Turn Apple Into A Serious Income Investment Yielding Over 5% Annually [View article]
    Correct

    But you need to compare that to what you would lose if you invested all $80,000 in Apple and then it dropped to $350. In that case you would lose $15,500, significantly more on a absolute and % basis than if you were to use the strategy I laid out above.

    The flip side is that if Apple goes to $500 you would not make as much money.

    It is all about your risk appetite and whether you think Apple is headed to the moon or is going to see a stagnant stock price for the near term.
    Jun 11, 2013. 10:12 AM | 1 Like Like |Link to Comment
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