How Investment Banking Has Changed - And Why It Must Be Addressed [View article]
A couple of great quotes from Mr. Perella's speech linked to above:
“When I went to work on Wall Street in 1972, all the firms were private. And that’s very significant. Today all these firms are public. In a private firm, the partners’ money is on the table and they watched it like hawks. They never got too far away from the money, and they watched the people whose hands touched the money. When these firms all became—not all at once, by the way, but over time—they became public companies, that changed the culture of these institutions. They became much more performance-driven, because public companies are watched in terms of what their earnings are quarter by quarter."
"“The balance sheets morphed from being leveraged at around 10:1—that is, that you had a dollar of equity for every $10 of assets you had—so you had $9 of debt. And most of the time in the early days these balance sheets were very easy to value... And the balance sheets morphed from being leveraged 10 or 12:1 to being leveraged 40:1…The balance sheet changed from these very simple, easy-to-value instruments to very exotic things, illiquid things, hard-to-value things."
More on the Galaxy S IV: Samsung continues doing everything it can to differentiate itself via software, even as the OS and many of its core apps for its hardware are provided by Google (GOOG). The S IV features a text/speech translator (9 languages), the ability to transfer data from any phone witha PC's help, a health-tracking app that can leverage the phone's pedometer and sync with blood pressure monitors, and the ability to control home electronics via infrared. There's also Samsung's eye-tracking and touch-free gesture tech (as rumored). No kitchen sink just yet. (live blog) [View news story]
Apple Needs To Spend Cash On R&D, Not Special Dividends [View article]
Your argument that Apple is trailing in innovation by citing battery life is quite flawed. At this point in time battery life is largely a function of battery size and Samsung simply has a larger battery in its phone.
Why I Would Not Touch Apple Ahead Of Earnings [View article]
Rocco you know I am a huge fan but I have to disagree somewhat. I argued that Apple investors were too optimistic last week with the longer term OTM calls when Apple was trading at 620+ but I think they are appropriate now.
I went Long AAPL May 19 2012 700 Calls and Jul 21 2012 620 Calls yesterday on the dip and am confident that they will serve me well. Remember Apple does not have to go to 700 to profit on the OTM calls!
You Cannot Put A Value On Your Favorite Stock [View article]
A great article to open the new trading year. I think all trader's should have a few key quotes stapled over their monitors. This one would be summed up as "Don't Catch a Falling Knife".
One point I will raise is that citing a high PE can certainly be a valid point. Generally I do not like to invest in high PE companies because they fall outside my typical investing comfort zone. I much rather prefer companies that offer attractive growth given their value. Of course there are exceptions to every rule if you are extremely confident in the underlying GROWTH story.
What Will Apple Do On February 24, 2012? [View article]
"In fact, early holiday sales reports indicate that 7-inch tablet sales growth has exceeded 9.7-inch models, and that more 7-inch tablets were purchased in November of 2011 and possibly also in December. The popularity of 7-inch models may compel Apple to enter the sub-category, possibly offering an iPad mini."
This statement is misleading. Firstly, this rumor pertained with tablet orders by the producers, rather than sales to consumers. Secondly, the drawdown was attributed to Apple slowing orders for the iPad 2 while waiting to start production of the iPad 3. Since Amazon has not released sales figures it is very difficult to speculate that the iPad is losing marketshare.
Upcoming Dividend Increase For AT&T: Is This High Yielder Still A Buy? [View article]
"This year should be no exception and the amount of the dividend increase should roughly equal the past two years' amount."
You cannot discuss AT&T's potential dividend increase without at least mentioning the potential charge associated with a failed T-Mobile merger. I could quite easily see no dividend increase if they attempt to offer a reduced cash buyout versus a spectrum non-cash charge.
Buy Apple at a Discount With Put Writing Strategy [View article]
Yes, the best analogy to use is that selling puts is like placing a limit order EXCEPT you get paid even if your limit is not reached. Sure you face the risk of loss if the stock declines significantly below your strike price but that is the case if you were to have used a limit order and been exercised.
3 Option Scenarios for Apple Investors [View article]
This argument is flawed. Consumers care about the user experience and enjoyment, not "higher feature and standards and adapters". Right now iOS is the most user friendly operating system and Honeycomb is still quite buggy.
You ask "Why would anyone want to try any other?". Quite simply there will always be competitors to the iPad because the tablet market is growing a phenomenal rate right now and others want to throw their hats into the ring.
I agree that Apple's lead is getting close to insurmountable with its lead and strong ecosystem but investors must remain vigilant in researching competitors.
How to Outperform the Nasdaq 100 With Apple [View article]
Unfortunately it appears that you missed the capital market implications for such an action. Both companies and investors care about market weighting because it impacts demand. A lower market weight decreases demand and causes share price to decline, assuming a constant supply. At the most fundamental level, all companies care about their share price because it influences the cost of capital. Additionally, shareholders care about their personal wealth.
How Investment Banking Has Changed - And Why It Must Be Addressed [View article]
“When I went to work on Wall Street in 1972, all the firms were private. And that’s very significant. Today all these firms are public. In a private firm, the partners’ money is on the table and they watched it like hawks. They never got too far away from the money, and they watched the people whose hands touched the money. When these firms all became—not all at once, by the way, but over time—they became public companies, that changed the culture of these institutions. They became much more performance-driven, because public companies are watched in terms of what their earnings are quarter by quarter."
"“The balance sheets morphed from being leveraged at around 10:1—that is, that you had a dollar of equity for every $10 of assets you had—so you had $9 of debt. And most of the time in the early days these balance sheets were very easy to value... And the balance sheets morphed from being leveraged 10 or 12:1 to being leveraged 40:1…The balance sheet changed from these very simple, easy-to-value instruments to very exotic things, illiquid things, hard-to-value things."
More on the Galaxy S IV: Samsung continues doing everything it can to differentiate itself via software, even as the OS and many of its core apps for its hardware are provided by Google (GOOG). The S IV features a text/speech translator (9 languages), the ability to transfer data from any phone witha PC's help, a health-tracking app that can leverage the phone's pedometer and sync with blood pressure monitors, and the ability to control home electronics via infrared. There's also Samsung's eye-tracking and touch-free gesture tech (as rumored). No kitchen sink just yet. (live blog) [View news story]
Apple Needs To Spend Cash On R&D, Not Special Dividends [View article]
Must Read Information On Popular REITs For 2013 [View article]
Should Apple Be Worried About Microsoft's Tablet? [View article]
Why I Would Not Touch Apple Ahead Of Earnings [View article]
I went Long AAPL May 19 2012 700 Calls and Jul 21 2012 620 Calls yesterday on the dip and am confident that they will serve me well. Remember Apple does not have to go to 700 to profit on the OTM calls!
Earnings News: Apple Has Become Its Own Asset Class [View article]
You Cannot Put A Value On Your Favorite Stock [View article]
One point I will raise is that citing a high PE can certainly be a valid point. Generally I do not like to invest in high PE companies because they fall outside my typical investing comfort zone. I much rather prefer companies that offer attractive growth given their value. Of course there are exceptions to every rule if you are extremely confident in the underlying GROWTH story.
What Will Apple Do On February 24, 2012? [View article]
This statement is misleading. Firstly, this rumor pertained with tablet orders by the producers, rather than sales to consumers. Secondly, the drawdown was attributed to Apple slowing orders for the iPad 2 while waiting to start production of the iPad 3. Since Amazon has not released sales figures it is very difficult to speculate that the iPad is losing marketshare.
http://bit.ly/uNdnHb
Upcoming Dividend Increase For AT&T: Is This High Yielder Still A Buy? [View article]
You cannot discuss AT&T's potential dividend increase without at least mentioning the potential charge associated with a failed T-Mobile merger. I could quite easily see no dividend increase if they attempt to offer a reduced cash buyout versus a spectrum non-cash charge.
RIM Earnings Call: That Wasn't So Good, Was It? [View article]
www.loopinsight.com/20.../
Buy Apple at a Discount With Put Writing Strategy [View article]
Another great article Rocco!
3 Option Scenarios for Apple Investors [View article]
Apple Is Cheap, But Stay Cautious [View article]
I agree that Apple's lead is getting close to insurmountable with its lead and strong ecosystem but investors must remain vigilant in researching competitors.
How to Outperform the Nasdaq 100 With Apple [View article]