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  • Apple's Story: Only The Beginning? [View article]
    "... we could consider Apple's cash position 'parked outside' a hedge against inflation?"

    While the fed is printing money and effectively devaluing the dollar, cash may be a burden for AAPL.

    If interest rates go up, this will be massively good for Apple's cash hoard, on the other hand a rise in earnings per share will probably be matched by higher prices for consumers as inflation kicks in.
    Apr 13, 2013. 10:58 AM | Likes Like |Link to Comment
  • Apple's Story: Only The Beginning? [View article]
    "Those are web sites with broken or dead links to live chats."

    I tested one of those live chat links and "Mikhayla" responded within seconds. I can't really see if it matters if she is in Bangalore, Baltimore, or Bangkok for that matter.

    "Customer service is a store in a major metro area where you can take your phone or tablet and have a human interact with you..."

    Yes, if you don't mind taking the day off work to travel to the metropolis. Having just checked myself, the nearest Apple store is 1132 miles from where I live and would require an overnight stay in a hotel plus airfares, taxis, meals. On the other hand I could get help via live chat without moving from my kitchen.

    According to Wikipedia there are only Apple stores in 14 countries in the world out of almost 200 countries. There isn't even one in Puerto Rico, which is part of the US. Some customer service.

    I am cautiously long Apple at this price and trade weeklies against long LEAPS, but let's not get carried away with this customer service thing.
    Apr 13, 2013. 10:53 AM | Likes Like |Link to Comment
  • Apple's Story: Only The Beginning? [View article]

    Presumably you live close to an Apple store and do not have to take the day off work losing 12 hours pay so you can drive 2 hours to the store location. With an online chat service like Samsung has, which is open 24 hours a day, you could make contact from home (or maybe from work if your employer permits), and save gasoline. If the device has to be shipped for repair, a shipping label can be downloaded and printed at home and the shipping can usually be done from close to home.

    Of course if you want the same kind of service for your cell phone as for your washing machine or car, then that is your prerogative.

    Anyway, the point made above was that Samsung has NO customer service. You can certainly buy all kinds of cheap consumer electronics from Chinese web sites like that really do come without any customer service, but Samsung devices do not come under that heading.
    Apr 13, 2013. 08:53 AM | 1 Like Like |Link to Comment
  • Analyzing Apple From An Absolute And Relative Value Standpoint [View article]
    She is probably thinking about what Tiger would do--most likely a double ratio back spread.
    Apr 12, 2013. 11:22 PM | Likes Like |Link to Comment
  • Apple's Story: Only The Beginning? [View article]
    "Plus Samsung has NO customer service."

    What is this?

    And this?
    Apr 12, 2013. 06:42 PM | 2 Likes Like |Link to Comment
  • Apple Offers Investors An Annualized Gross Return Of Between 0% And 15% Over The Next 5 Years [View article]
    Making a large investment in TSLA might not be a bad idea. Just the publicity alone would be immensely helpful for TSLA sales and adding the expertise of AAPL's design team and the might of its financial arm would be another plus.

    Then supply a courtesy bulletproof TSLA car to every member of Congress and a few more to the White House and the Pope, and it starts to look like a good investment.
    Apr 6, 2013. 09:58 AM | Likes Like |Link to Comment
  • Apple Offers Investors An Annualized Gross Return Of Between 0% And 15% Over The Next 5 Years [View article]
    Cheap is a relative term. Compared to the $700 iPhone a $400 jphone would be cheap, but it could still be a quality device considering that the iPhone only costs about $200 to build.

    My biggest concern is why Apple is not coming out with more products. Here we have a company with almost unlimited funds for research and development, a brilliant design team, and possibly the best brand name on the planet.

    Obviously they will never be able to produce another product as profitable as the iPhone sold via 2-year contracts and 2-year obsolescence, but there are any number of devices that incorporate microchips that could be designed better and sold at a premium for a really good quality device with the Apple marque.

    For example I would like a well-designed dedicated console music player that could play any kind of digital format and receive inputs from any kind of digital music media. Yes, you can use a laptop, but a dedicated device could be a thing of beauty and elegance with some frills that is designed to fit into a home.
    Apr 6, 2013. 09:17 AM | 1 Like Like |Link to Comment
  • Can Anyone Breach Apple's Moat? Part 2 [View article]
    I think this article misses the point by taking a rather mechanical approach.

    OF COURSE Apple has showed more impressive growth than these other companies over the last 5 years, because Apple came out with its most profitable product, the iPhone in mid-2007.

    And yes, Apple has had huge margins due to being first to market and being able to get a huge mark up on the iPhone in particular by contract sales in which the retail purchaser is not aware of the real price of the device.

    But the big question is whether Apple will be able to maintain this rate of growth and these margins in the future, and if so for how long. That is why there is uncertainty about the true value of the company to investors.
    Mar 18, 2013. 09:23 PM | 1 Like Like |Link to Comment
  • Apple: $420 A Share Could Have Marked The Bottom [View article]
    Good article Brett. I am certainly a long term buyer of AAPL at $220--big time. I picked up some shares for $226 the other day and sold them for $443 on Friday, but would welcome another pullback. For that reason I am very happy to sell $420 puts.

    The question is what now? Of course we are all trading against the quants, therefore whatever seems logical will probably not happen, at least not until it seems illogical. However my crystal ball sees a slight upward trend going into next month's earnings report.

    Then what? If earnings disappoint, then we would expect to see a pull back and another test of $420, but since that is the logical outcome I predict that if earnings disappoint the stock surges up to $500. If earnings excel, it is hard to see another big pullback, but there may be a slight sell the news effect all the same.
    Mar 17, 2013. 02:19 PM | Likes Like |Link to Comment
  • Apple Launching A Low Priced iPhone Would Be The Ultimate Sell Signal [View article]
    It would only cost a few dollars to add GSM calling capacity to the iPad mini, and then you would have an excellent all-in-one phone and Internet device cum music and video player for half the cost of the iPhone. Perfect for the more affluent customer in third world markets.
    Mar 12, 2013. 09:03 AM | 4 Likes Like |Link to Comment
  • Apple: Wall Street's Ignorance At Large Again [View article]
    "As current law stands, if Apple ever brings that cash back to the United States it will have to pay corporate tax of 35%."

    Are you sure that taxes already paid overseas would not be deducted from the 35% to avoid double taxation?
    Mar 12, 2013. 08:44 AM | 2 Likes Like |Link to Comment
  • Why You Should Buy Apple Now [View article]
    I would have thought EKG would be range bound.
    Mar 11, 2013. 09:11 AM | 1 Like Like |Link to Comment
  • Why You Should Buy Apple Now [View article]
    Terrific article, very comprehensive, incisive, and accurate. No further comment necessary.
    Mar 10, 2013. 09:18 PM | 15 Likes Like |Link to Comment
  • Apple: Learn From Andy Zaky's Mistake [View article]
    To trade options, at the time that you enter a position, you need to have already planned what you are going to do if the position moves against you, and need to also plan what you are going to do if your plan B goes against you. Usually this means using some type of Martingale system combined with stops and some kind of hedging. Due to the leverage of options, a large part of the portfolio should be held in cash or equivalents.

    I think it would be incredibly difficult to trade with millions of other people's money without being tempted to hit for the fences rather than bunting for singles.
    Mar 8, 2013. 07:24 PM | Likes Like |Link to Comment
  • Apple: Learn From Andy Zaky's Mistake [View article]
    The interesting point is that if enough people believe in the head and shoulders theory, they will start to buy at $360 making it a self fulfilling technical indicator.
    Mar 8, 2013. 06:07 PM | Likes Like |Link to Comment
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