Seeking Alpha

Paul Zimbardo

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  • Want an Apple Dividend? Create Your Own [View article]
    If I am making a healthy profit on the trade, I don't worry about commision. This is similiar to how many investors are afraid of paying taxes on capital gains: I would much rather have the gains to pay taxes on rather than having losses!
    Jan 25 07:59 PM | Likes Like |Link to Comment
  • Want an Apple Dividend? Create Your Own [View article]
    I took the opposite opinion: selling extremely long-term options is even more risky. As the duration increases, there is the potential for more negative news that can drive the stock price down. Weekly options have the benefit of high premiums but in general, potential price movements are limited over such a short period of time. For most stocks I follow, I am not substantially woried that the company will fundamentally change in one week.
    Jan 25 07:57 PM | Likes Like |Link to Comment
  • Want an Apple Dividend? Create Your Own [View article]
    The fact that Apple surged the first two trading days this week only increases the value of the options. This might not be the most lucrative option strategy but it is relatively safe and easy to understand.
    Jan 25 07:48 PM | Likes Like |Link to Comment
  • Want an Apple Dividend? Create Your Own [View article]
    Why are they mutually exclusive strategies? Everyone should sell some of their shares to capture gains but there is no reason why options cannot be used as well. In fact, selling covered calls is a great strategy to force yourself to sell stocks at regular intervals and avoid being piggish.
    Jan 25 07:46 PM | 1 Like Like |Link to Comment
  • Want an Apple Dividend? Create Your Own [View article]
    Thnks for the comment! I am one of those very happy Apple shareholders and have created a very successful income strategy using options.
    Jan 25 07:45 PM | Likes Like |Link to Comment
  • Want an Apple Dividend? Create Your Own [View article]
    You are partially correct; however, potential losses are reduced by the premiums received on the calls. Your investment can decrease by the amount of the premium and you still would break-even on the trade, before commision.
    Jan 25 07:44 PM | 1 Like 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 01:24 AM | 2 Likes Like |Link to Comment
  • How the iPod Became Irrelevant to Apple's Growth [View article]
    I agree with you completely, as I said in my previous comment. I have followed Apple as an investor and as a consume for years and it is clear that you are right on the money. I just believe that it at least bears cautioning others that the iPod is still a vital part of Apple's operations, despite the increasing importance of other new products with higher growth and absolute gross margins.
    Jul 20 10:30 AM | Likes Like |Link to Comment
  • How the iPod Became Irrelevant to Apple's Growth [View article]
    I agree completely, which is why the statement that "Any way you look at it, Apple is simply no longer dependent on the iPod" is incorrect. People commonly buy iPod Touches and then realize how much they love the platform and eventually upgrade to iPhones. Even neglecting the 20% financial impact of the iPod which the author correctly identifies as decreasing in relative importance, the ease of which the iPod Touch makes future upgrades is not to be understated. This is what enables customers to easily upgrade to iPhones and iPads without any hesitations.
    Jul 19 10:07 PM | Likes Like |Link to Comment
  • Putting iPad Pre-Orders in Context [View article]
    "Only an Apple (AAPL) freak would buy a product without ever trying it out."

    People buy products all of the time without trying them out. Look at video game systems, cell phones, and numerous other products that people commonly purchase without first using them. Would you call all of them "freaks"?
    Mar 15 06:10 PM | 7 Likes Like |Link to Comment
  • Apple: Don't Hope for a Stock Buyback [View article]
    @ Chad Brand: "To assume the same for a share repurchase plan, however, is simply incorrect. Apple could retire 10% of the company’s outstanding shares and only use half of its unused cash balance! How can Jobs argue that a 10% increase in Apple’s earnings per share would not positively impact the stock price?"

    Mr. Jobs can correctly argue that a 10% increase in EPS will not positively impact the stock price because the rational investors in the efficient market will ignore the increase in EPS given that it was artificially created. The stock market is not just a kid's game where investors are easily tricked by increasing EPS. Please read up on market efficiency.

    @ Techtrader10: Your comment about Jobs' heirs is not only random but also nonsensical. If Jobs heirs received their stock at $200 via a step-up in basis, then a dividend was declared, much of it would simply be a non-taxable return of capital rather than a dividend.
    Mar 6 09:20 PM | 1 Like Like |Link to Comment
  • The iPhone: Apple's First Flop [View article]
    "The company has had a string of hits since it introduced the iPod and its shareholders have benefited sending shares from $7 in 2003 to the $100 they sit at today."

    Glad I didn't listen to this. $100+ /share glad.
    Dec 1 02:46 PM | 2 Likes Like |Link to Comment
  • Why Apple Is Worth $80 [View article]
    @other commentors: No need to be nasty with the replies.

    @Kai: As with the majority, I strongly disagree that Apple is "worth" $80. The most obvious reason why is the companies outstanding balance sheet.

    Apple has over $26 per share in cash and has a book value per share of $31. Are you trying to tell us that one of the most innovative companies in the world that is growing at a phenomenal rate should be trading at 3x cash and 2.5x book value? Heck, even value investors would be tempted by those multiples.
    Oct 25 02:22 PM | 9 Likes Like |Link to Comment
  • Buy Apple, Says Analyst [View article]
    My favorite aspect is his factors for continuing success: "continue developing new and innovative products".

    I cannot think of one company in which that would not apply. Nice boilerplate to throw in an analyst's report.
    Sep 4 12:48 PM | Likes Like |Link to Comment
  • An iTunes Subscription Could Subsidize the Apple Tablet [View article]
    I believe that Apple will follow its business model with the iPod Touch and offer just Wifi for the first generation, despite the lack of subsidy. Maybe even the possibility of tethering with an iPhone on AT&T?
    Jul 31 10:42 AM | Likes Like |Link to Comment
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