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Paul Zimbardo  

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  • Debunking the Myths of Apple's Liquid Assets [View article]
    CMacintosh, I would love for Apple to reinvest the cash in the business but it is unrealistic to expect Apple to invest all of its surplus cash, cash & cash equivalents, and marketable securities at its historic ROE. Personally, I would love for Apple to repurchase stock as it is a strong bullish sign and improves future EPS. Also, this is a fluid decision that can be suspended or even reversed; the same is generally not true for a dividend policy.
    Mar 19, 2011. 12:40 PM | 2 Likes Like |Link to Comment
  • Foxconn's Revenue Slows: Trouble Ahead for Apple? [View article]
    I believe this was completely disproved by more knowledgeable Apple analysts:

    "Oppenheimer's Yair Reiner pointed out Wednesday that Hon Hai -- which is dependent on other manufacturers for nearly 80% of its business -- is a lousy proxy for Apple."

    Mar 17, 2011. 09:48 AM | 2 Likes Like |Link to Comment
  • How Much Cash Is Too Much? [View article]
    "No investor in a company is ever hurt by cash being invested in low return, riskless assets."

    This is false. An extreme example proves this. If I invest in XYZ Co. whose only asset is $1M in cash earning .01%, I would be "hurt" because that is not earning enough to satisify my desired return. I could earn more investing in other assets.

    Everyone mentions Apple and its cash hoard but with the capital gains it is generating, I have no problem with them sitting on their cash.
    Feb 28, 2011. 07:42 PM | 2 Likes Like |Link to Comment
  • Apple to Release Cheap iPhone [View article]
    There is real money to be made by trading on rumors but you absolutely CAN NOT label them as fact in an article.

    Additionally, the statement that "One semiconductor company that's currently flying under Wall Street's radar could be as much as 50% undervalued" provides no value to your readers. It is akin to me writing that there is one S&P500 stock that is significantly undervalued. Sure it could be true but how can I act on that?
    Feb 16, 2011. 11:38 AM | 2 Likes Like |Link to Comment
  • Why 'Wave and Pay' May Catapult the iPhone Over Android [View article]
    I agree regarding convenience - if I have to wait in line for one minute less each transaction, that is a HUGE benefit.
    Feb 6, 2011. 10:07 PM | 2 Likes Like |Link to Comment
  • While the BlackBerry Torch (RIMM -2.5%) is clearly not the revolutionary leap RIM proclaims, it does adequately address previous devices' shortcomings, and John Paczkowski says that may do the trick: "The company says fresh, but familiar is the goal to which it aspires. The Torch is that, and it will likely be a hit with die-hard Blackberry users."  [View news story]
    Eric Zeman summed it up well over at InformationWeek: "BlackBerry 6 offers enough to help RIM retain existing BlackBerry users, but it lacks the sex appeal to convince Android or iPhone users to defect to BlackBerry."
    Aug 3, 2010. 06:01 PM | 2 Likes Like |Link to Comment
  • BP says it plans to claim $9.9B in U.S. tax credits based on the $32.2B charge it reported related to costs for the Gulf oil spill. BP is just "following IRS regulations as they're currently written," but the move likely will become the latest BP-related political hot potato.  [View news story]
    With respect to the "idiotic and corrupt IRS tax structure", this is one of the areas of tax law with the greatest benefit to businesses and is quite fair. The article is ambiguous as to whether this is a true tax credit or simply a deduction but the logic is similar. If you have a loss in a year, you are entitled to a refund for some back taxes paid and/or carry those losses forward to pay less in the future.

    This same law applies to BP as it does to your local start-up company. What would not be fair is a company had to pay taxes on its gains but received no benefit/refund for its losses.
    Jul 27, 2010. 02:56 PM | 2 Likes Like |Link to Comment
  • Might the T-Mobile iPhone Preempt the Verizon iPhone? [View article]
    Sure anything is possible but I find it difficult to believe that Apple would partner up with T-Mobile before Verizon. Verizon not only is much more financially sound but has many more customers. Sprint and its ~30M post-paid subscribers is likely not a big enough market for Apple to forgo the lucrative offerings that either/or AT&T or Verizon. Perhaps T-Mobile as a "third wheel", but not as a primary.
    Jul 21, 2010. 06:05 PM | 2 Likes Like |Link to Comment
  • Apple Obliterates Q3 Estimates on Best Mac Sales Ever, Huge iPad Numbers [View article]
    Apple destroyed earnings estimates during the most recent recession and I see no reasons why things would be different if things were to double dip. Sure the stock will likely decline in line with the NASDAQ or worse, but I see very few threats for long term investors.
    Jul 21, 2010. 01:24 AM | 2 Likes Like |Link to Comment
  • Apple (AAPL -3.1%) is apparently less than pleased with Consumer Reports' decision not to recommend the iPhone 4, and Apple Discussions forum administrators have been pulling down all threads related to the negative report.  [View news story]
    "No background" - got a good laugh at that one. I read tech blogs for about an hour a day and I know exactly what the problem is. If users read my previous comment they will see that I do acknowledge the fact that there is a problem but it is being blown far out of proportion. To boil the issue down, users in areas with poor reception can lose their reception by bridging the antenna. This is not Toyota producing cars that cannot break. This is not BP leaking oil into the ocean. This is a cell phone with a reception issue. Most modern phones have areas in which the signal will degrade if you touch them. You would think that people are dieing in the streets from using the iPhone the way the media reports things.

    I own AAPL, I know the the problem is being overblown by the media, AAPL will fix the problem, shorts will get killed. End of story.
    Jul 15, 2010. 11:10 AM | 2 Likes Like |Link to Comment
  • Is Apple Worth 8.4 X Research in Motion? [View article]
    As of fall of last year I sold all of my RIMM and have never looked back. In fact, I have purchased shorts numerous times to capitalize on its inevitable fall.

    I love good fundamental analysis but when looking at innovation-based stocks, such as RIMM, you really need to be more forward looking. I have seen the leaks of RIMMs next two phones and they are lackluster. Its new operating system is acceptable, which is a huge improvement on its old OS but is far behind the rivals. Quite simply, RIMM has been a great performer that is still posting enviable growth but it has no real catalysts in the pipeline. The old spec of hope is that the company will get a sales boost if the iPhone goes to Verizon because it is rumored that AT&T will be forced to subsidize Blackberries heavily.

    I do believe that RIMM is decently priced at 12x earnings but I see tremendous room for this company to fall. I would not be shocked to see RIMM trading 50% lower in the next two or three years. Perhaps it will fall to the lows of Palm and get acquired but I cannot recommend buying RIMM now. This is even coming from someone who was a strong buyer of RIMM and wrote an article suggesting at as a buy in October 2009.
    Jun 30, 2010. 11:17 PM | 2 Likes Like |Link to Comment
  • VF Corp: An Investment to Wear for the Long-Term [View article]
    David thank you for that great resource. This will certainly come in handy for future articles. 37 years is extremely impressive! You are correct, I used VFC's shareholder relations to get the data. Thank you for the correction!
    Jun 23, 2010. 01:54 AM | 2 Likes Like |Link to Comment
  • 34 S&P 500 Stocks Yielding More Than 5% Dividends [View article]
    I would strongly suggest using ETFs rather than mutual funds. The fees are generally lower because they are more passively managed. There are several great dividend ETFs available as well.
    Jun 22, 2010. 04:39 PM | 2 Likes Like |Link to Comment
  • 34 S&P 500 Stocks Yielding More Than 5% Dividends [View article]
    I never said that I base my investing decisions solely on yield and beta but beta provides a quick proxy for risk that is an excellent screening tool. Rather than researching 34 stocks, I can (personal choice) eliminate all dividend stocks with a beta greater than 1.2. A lot easier to research 10 stocks than 30.
    Jun 8, 2010. 05:02 PM | 2 Likes Like |Link to Comment
  • Hey Apple, How About a Dividend? [View article]
    Apple does not need to invest all of that cash for it to provide value to shareholders. I can easily envision three scenarios in which holding that cash can add value to shareholders:

    1. Facilitates more risk taking/aggressive research and development
    2. Permits strategic acquisitions
    3. Threatens Google and other would be entrants by having a small country worth of cash to utilize to stem competition
    Mar 16, 2010. 02:34 PM | 2 Likes Like |Link to Comment