Research In Motion Ltd. (RIMM)
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- Fannie & Freddie Bailout? - Fast Money Recap (9/5/08) [view article]
- Nokia Tumbles, Dragging Handsets Down [view article]
- Five Trends to Watch in Mobile Devices [view article]
- Things Aren't Good - Fast Money Recap (9/4/08) [view article]
- Not Off the RIMM - Cramer's Lightning Round (9/3/08) [view article]
- Global Growth Trades - Fast Money Recap (9/3/08) [view article]
- The Wireless Application Marketplace: Apple, Google, Microsoft and RIMM [view article]
- Nokia Gets No Respect Against Apple, RIM [view article]
- Again With the Financials - Fast Money Recap (8/29/08) [view article]
- Apple: Great Company with Lofty Valuation - Due for Pullback [view article]
- Obama Plays - Fast Money Recap (8/27/08) [view article]
- Monday Options Update: GE, LEH, C, RIMM, AMD, STI, TLAB, ALO [view article]
loading ...Recent RIMM Articles
- Fannie & Freddie Bailout? - Fast Money Recap (9/5/08)
- Friday Options Update: SNDK, VMED, UST, SKS, RIMM,EWW, ALU, EWH, WLP
- Nokia Tumbles, Dragging Handsets Down
- Five Trends to Watch in Mobile Devices
- Things Aren't Good - Fast Money Recap (9/4/08)
- Global Growth Trades - Fast Money Recap (9/3/08)
- Nasdaq 100 Struggles
- Significant Drop In US Consumer Mobile Phone Sales
- The Wireless Application Marketplace: Apple, Google, Microsoft and RIMM
- Again With the Financials - Fast Money Recap (8/29/08)
- Full List of Articles »
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Don't Cancel Motorola's Funeral Just Yet [view article]
the best advice is-dont believe anybody about anything.all have an agenda.think for yourself.should you believe this advice?i dont know. ReplyDisgusted
Apple: Great Company with Lofty Valuation - Due for Pullback [view article]
One more thing; for those who might take exception to my apparent frivolous comments in defense of Apple, this is no different from the writer of the article who is equally frivolous, except he is more verbose by regurgitating statements we have already read repeatedly elsewhere.Of more important and timely significance is the fact that AAPL is holding its own today in a very down market and it appears that institutional buying on the rise, moving from -6.4% to -5.6%. So, if AAPL is due for a pull back its would only be because the shorts would like to see one. Reply
Disgusted
Apple: Great Company with Lofty Valuation - Due for Pullback [view article]
The question is....which big bank to put your money into; I bet they all won't be around in 2010, and as fro those fat dividends, they will go the way GM dividends went. ReplyApple: Great Company with Lofty Valuation - Due for Pullback [view article]
"Yep; it will be for a pull back from $300 in 2010" Interesting comment although I figure that the share price of any big bank that survives the current turmoil will probably double by 2010 as well - and pay dividends in the meantime. ReplyDisgusted
Apple: Great Company with Lofty Valuation - Due for Pullback [view article]
Yep; it will be for a pull back from $300 in 2010. ReplyApple: Great Company with Lofty Valuation - Due for Pullback [view article]
My prediction: Apple will control 100% of every consumer electronic product category within 12 months; their stock will trade at $25,000 per share - hurry before it is too late! I mean Apple has such a great track record of turning innovation into market share...how can I be wrong?The kind of frothy hysteria I am parodying here makes me sure AAPL is due for a pullback. Certainly its a good company and inspires fanatical loyalty among its followers but nothing goes up for ever. Anedotally I think that many of the things that worked for Apple as a leading niche innovator may work against it, culturally, as a global technology hegemon that everyone here seems to believe it will become. Reply
Apple: Great Company with Lofty Valuation - Due for Pullback [view article]
I would suggest that the writer is new to Apple stock. This issue has traditionally maintained a P/E greater than where it is today. If anything, with all of the positive news and market penetration, AAPL is due to have an increase in valuation in the near future. ReplyApple: Great Company with Lofty Valuation - Due for Pullback [view article]
NEWS FLASH, Mark - options have expiration dates so you have to 'use them or lose them'. If a lot come due at the same time, of course they will be exercised. Companies typically set fixed dates during the year for options and it may be that one of those has recently come up. ReplyApple: Great Company with Lofty Valuation - Due for Pullback [view article]
Obviously you have never been in a situation where you have stock options to exercise. The US government requires you to pay taxes on the paper gains between the original option price and the market price. For example, if you have 1000 shares at $0.10 a share, to purchase the shares would only be $10, but if the market prices was $500 a share, the feds would want you to pay cap gains of on $500,000 less the $100 you paid for it. This makes it very difficult to exercise shares and then to own them unless you wanted to make arrangements to get a loan to do this. I'm being very basic and elemental because you obviously don't have a clue why employees exercise and sell their shares. It's because FASBA and the IRS changed the rules where you have no choice but to sell unless you're already wealthy and have lots of cash laying around. ReplyApple: Great Company with Lofty Valuation - Due for Pullback [view article]
But wait! I got the math wrong! Because the Medicare tax is split between the employer and employee, the cost to Apple for the $175M in options exercised is no more than $2.5M, causing a reduction in FCF of no more than 0.125%. So rather than $2.35 EPS, Apple could have reached $2.353! Carrying the effect out to the stock price, rather than trading at $175, it might be trading at $175.22!I thought it was okay at $175, but now that I've learned it could be as high as $175.42 if not for those pesky options, I'm not so sure anymore... Reply
Apple: Great Company with Lofty Valuation - Due for Pullback [view article]
I almost forgot to ridicule this:"The exercise of options creates three negatives (1) More shares are added to the supply (2) the added shares cause earnings dilution. (3) the company incurs payroll taxes on the gain that the employee realizes."
1. More shares added to the supply is not, in and of itself, a negative; it increases the liquidity of shares, so technically it's a positive.
2. Earnings dilution - absolutely right. And the dilution caused by a million new shares? A whopping 0.113%. That's right, instead of EPS of $5.21 this year, you can only expect $5.204.
3. Payroll taxes. Since Social Security tops out at around $100K, I'm going to assume that the payroll taxes you write of is just Medicare. At 2.9%, that comes to about $5M for the two quarters you reference. This caused a reduction in FCF of less than 0.25%. So instead of $2.35 in EPS over that period, AAPL might have hit $2.356!
You're right, those options, which keep key employees around, are just too expensive. Reply
Apple: Great Company with Lofty Valuation - Due for Pullback [view article]
One of your co SA bloggers just wrote almost the exact same thing. The problem with your theory: The people that drove the stock price up know the number you're working back from is incorrect. I find it amusing how you even say, "The analysts certainly appear to pander to management's guidance and sandbag their estimates to coincide" yet your hypothesis is entirely based on estimated earnings of $6.06.I can't even believe you wrote this knowing that Apple would beat those numbers, Apple is gaining market share, and Google is stagnant in terms of market share. You obviously don't remember why Google got hammered after they reported last quarter.
Google is not as a good a stock as Apple.
-They aren't going to grow the market share in their core business like Apple will with the Mac.
-Apple has proven income streams from multiple businesses.
-Google's estimates are predicated upon growth in overall advertising and a continued shift away from 'traditional' advertising. Reply
Apple: Great Company with Lofty Valuation - Due for Pullback [view article]
Ridiculous - insiders sell because THEY have to pay the taxes. ReplyApple: Great Company with Lofty Valuation - Due for Pullback [view article]
Mark, Seriously, you should stick to your background of covering restaurants, airlines, and companies selling donuts, sugar, tea, auto parts, etc. Obviously the high technology industry is not your cup of tea. ReplyOdo
Apple: Great Company with Lofty Valuation - Due for Pullback [view article]
If Apple is overvalued, then what do you think about RIM? That company also has a high valuation. It's starting to sell the Bold and soon the Thunder. Apple should sell far more iPhones than RIM can sell Bolds. RIM has been up as high as $148 a share this year. Is it worth that much? Reply