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Davy Crockett

Davy Crockett
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  • More on Sanderson Farms' FQ4 [View news story]
    From Investors' Business Daily:

    [Meanwhile, Sanderson Farms' (NASDAQ:SAFM) fiscal Q4 EPS jumped 105% to $4.04, topping estimates by 3 cents a share.

    The producer of fresh and frozen chicken products reported a 4.6% increase in revenue to $760.85 million, just above consensus for $758.28 million.
    CEO Joe Sanderson said, "While poultry markets improved only slightly compared to fiscal 2013, grain prices, especially corn prices (the company's primary chicken food), were significantly lower during the year when compared to fiscal 2013."

    But shares slid 4.3% amid concerns that growing poultry demand might result in industrywide overproduction and slimmer profit margins.]

    In other words, the analysts' spin on the earnings report has now turned into: Today's success MIGHT lead to tomorrow's overproduction? That could be true in virtually any industry, and it's not reasonable that a positive earnings report should be interpreted that way.
    Dec 18, 2014. 01:32 PM | Likes Like |Link to Comment
  • More on Sanderson Farms' FQ4 [View news story]
    Meanwhile, the stock is tanking, based upon an erroneous Zacks/AP report that this was an earnings miss.
    Dec 18, 2014. 10:31 AM | Likes Like |Link to Comment
  • Why Apple Has To Take Bendgate Seriously [View article]
    If Apple does agree to repair/replace the bent phone under warranty, then a bigger problem for Apple might be customers with cracked screens from some other cause (not covered under warranty) subsequently bending their phones and falsely claiming that the bent case caused the cracked screen. This obviously won't fly if the screen appears to show a point of impact, but they might get away with it sometimes.
    Sep 26, 2014. 12:24 PM | 1 Like Like |Link to Comment
  • Apple Demand Explained By Thorstein Veblen [View article]
    This article is about as incomprehensible as Thorstein Veblen's lectures were reputed to have been during his Stanford years. I rather doubt that Mr. Veblen was thinking about functional assembly line items, produced by the millions, as objects deserving of inclusion in his "conspicuous consumption" category. In an earlier article ("The Real Premium Smartphones are not iPhones"), Mr. Blair presented a survey of various limited edition Android smartphones, many of which incorporate jewels or precious metals into their cases and are priced starting at least 10x higher than premium mass market smartphones - those are all excellent examples of "conspicuous consumption."
    Sep 15, 2014. 06:45 PM | 2 Likes Like |Link to Comment
  • Apple: Pay And Watch Offerings Unlikely To Move The Needle [View article]
    "Somebody that has an Android phone is going to now pay up for an iPhone?" Somebody who has an older iPhone has one more reason to upgrade with iPhone and not wander into the Android camp - increased utility and convenience. For a current Android owner who is now ready for a new phone but undecided and still shopping, this moves the needle incrementally towards Apple - if one of the factors guiding the buying decision is the ability to utilize mobile payments, does anyone honestly believe that Google Wallet will win out over Apple Pay? Incremental movements, given enough time, have a way of tipping towards critical mass.

    "Not enough retailers signed up so far" - we're only two days past the public announcement; Apple Pay doesn't actually begin until October. What did you expect at this very early stage?

    "Outside of tech geeks, how many people are going to take the time to figure out whether Pay works at the retailer?" Judging from what's happened so far, I'm going to go out on a limb and state that retailers will be loud and clear about letting consumers know that they accept Apple Pay. Immediately after the Apple event on Tuesday, Chase posted an announcement on their home page, letting me know that my Chase Visa card is eligible for Apple Pay. I don't remember a similar announcement in 2011 when Google Wallet was unveiled. Best Buy already installed NFC readers in many of its stores in 2011 for Google Wallet, but has subsequently turned them off because of the failure of that mobile payment system. Given that track record, it is understandable that they should be gun shy about turning them back on again for Apple Pay - they'd rather play wait and see. Apple's timing couldn't be better on unveiling this payment system. Retailers in the US will need to upgrade their card readers very soon to read embedded chip credit cards. Since this is an obligatory investment, many or most of them will simultaneously opt for card readers that also include NFC capability, and thus be ready for Apple Pay.
    Sep 11, 2014. 03:33 PM | 4 Likes Like |Link to Comment
  • Apple: Pay And Watch Offerings Unlikely To Move The Needle [View article]
    Mobile pay isn't so much about literally leaving your credit card(s) at home (unless we someday get to a point where 100% of retailers accept Apple Pay or Google Wallet, etc.) - it's about speed, security, and convenience for both the consumer and the merchant when performing transactions. At this stage of the mobile game, we all carry ID when we are out and about, so stuffing a credit card or two behind the driver's license "just in case" isn't an inconvenience. The author raised the issue about being stranded because of a dead phone battery - that's something of a red herring. Apple Pay appears to be the most well thought out mobile pay system to date, and if widely utilized, is likely to lead to a very significant increase in iPhone sales. In just a couple of years, one could easily imagine dedicated checkout lanes at Home Depot or Costco for Apple Pay customers, with customers being served much faster in those lanes, and customers in the slower lanes looking over and jealously wishing that they too had iPhones. At perhaps 20 basis points per transaction, the author is correct in noting that the direct revenue stream from Apple Pay isn't likely to move Apple's profits or share price all that much - the real money for Apple and their investors can be from increased phone and/or watch sales, or someday, license fees from other smartphone manufacturers, if Apple Pay becomes the dominant mobile payment platform.
    Sep 11, 2014. 01:50 PM | Likes Like |Link to Comment
  • Apple: 4 Reasons Why The Giant iPad Will Be A Giant Flop [View article]
    Apparently, Stock Exchange, you have no idea what a POS system is, and therefore you have no idea what my comment was about. The logical conclusion that follows is that you had no business publishing this SA article because you didn't research your topic before writing it. Believe it or not, businesses do indeed utilize cloud computing. Try searching: iPad POS system; you might actually learn something. At this point, only iPads and Surface tablets are significant players as tablet-based POS systems, with iPads currently being overwhelmingly preferred. Android tablet based POS systems are almost nonexistent.
    Sep 9, 2014. 05:27 AM | 2 Likes Like |Link to Comment
  • Apple: 4 Reasons Why The Giant iPad Will Be A Giant Flop [View article]
    As I read through this article, I couldn't help but notice a complete lack of any discussion about business uses for a larger iPad, a subject that came up in every one of the articles that I read about this new product when the news first broke about 10 days ago. chenmj and others have already mentioned the BYOD market. In addition, small businesses (or even large businesses) that are considering the purchase of POS systems will be potential customers. The 10" iPad, paired with appropriate software from third parties, has already made significant inroads into the sales of traditional POS systems; it has a substantial cost advantage. My guess is that this trend will accelerate with a larger iPad, because the new touch screen size will more closely approximate what businesses are already using. In addition, the partnership with IBM may indicate that Apple intends to market both the hardware and software, and additional revenue stream.

    Given the limitations of the likely target markets, I suspect that Apple's sales expectations for the larger iPad are modest - it isn't a lynch pin make or break product, which makes the author's concluding statement, "If Apple does make a huge investment in such a product, I will immediately short the stock" seem rather silly and pointless.
    Sep 8, 2014. 08:33 PM | 1 Like Like |Link to Comment
  • Apple Take Note - Samsung Has Not Gone Away [View article]
    Samsung is indeed an "engineering juggernaut"... when it comes to washing machines. Their VRT feature has changed our lives for the better. Now we can do laundry late at night, without awakening sleepers, something that wasn't possible with our Frigidaire. Smartphones? Not so advanced. Even Samsung's Rugby military grade flip phones suck compared to Casio G'zOne.
    Sep 3, 2014. 04:18 PM | 4 Likes Like |Link to Comment
  • Apple: The Party Is Over; Initiating With A Bearish View [View article]
    I rather doubt that this article will sway anyone, and therefore it is unlikely to cost anyone anything. I give SA readers credit for being too intelligent to be dazzled by this meaningless presentation. The only section of this article of any significance is the part entitled "Analysing the upcoming product cycle" - and that part is shear speculation. How can one analyze that which does not yet exist?
    Jul 10, 2014. 01:34 PM | 1 Like Like |Link to Comment
  • Algorithm Predicts An End To Apple's 12-Month Run [View article]
    Kind of a disappointing bait-and-switch article. I started reading with the expectation of a slew of data demonstrating the success of the proprietary algorithm at predicting price movements of a broad range of stocks. Since that wasn't forthcoming, I assume that the omission means that the algorithm hasn't done much better than random guessing overall. Instead of focusing upon the algorithm, the author switched to rehashing tired old stuff about Apple's prospects in the post-Steve Jobs era, etc.
    Jul 9, 2014. 03:23 PM | 1 Like Like |Link to Comment
  • What Was Tim Cook Thinking? An Analysis Of Beats Electronics [View article]
    There's nothing to prevent Apple from expanding the Beats product lineup to include audiophile grade headphones and earbuds, in addition to the current bass-heavy Beats headphones, thereby broadening the appeal of the Beats label beyond hip hop listeners. I also expect that Apple will very quickly offer Beats labeled earbuds as a package deal upgrade to the iPhone and iPod.
    Jun 10, 2014. 10:49 AM | 2 Likes Like |Link to Comment
  • Why Apple Is The Perfect Stock For Anyone [View article]
    I can't imagine the FTC allowing such a deal to go through. Seventeen years ago, when Apple was near bankruptcy, yes. But not today.
    May 26, 2014. 03:36 PM | Likes Like |Link to Comment
  • Look At What's Happening To Apple's Gross Margin Now [View article]
    If the Beats deal goes through, margins can only improve. I've read that they mark their headphones up by 500% or more.
    May 16, 2014. 12:54 PM | Likes Like |Link to Comment
  • Is Apple Ready To SLAM The World? [View article]
    Not only would you get location and price, but also a lot of other detailed product information so that you don't have to hunt down an employee to ask questions, or wait for your turn while the Best Buy employee is helping another customer.
    May 15, 2014. 04:25 PM | 4 Likes Like |Link to Comment
COMMENTS STATS
129 Comments
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