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bailinnumberguy

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  • Why Apple Should Follow IBM's Successful Turnaround Story [View article]
    Apple's the most profitable company in the world with more money in the bank than they could ever need. In retrospect the stock's run to $700 was an ill-fated speculative fiasco. People forget that Apple became the most valuable company in history 6 months ago. If there never was that big run up no one would be talking about 'turning around' Apple.
    Mar 9 01:03 PM | 3 Likes Like |Link to Comment
  • Apple Can Recapture Old Magic By Looking To The East [View article]
    Apple was essentially a monopoly in the quality smartphone category when the iPhone first arrived and for several years thereafter. Other companies, principally Samsung (who also is a key supplier to Apple) , figured out what Apple was doing and Apple is no longer a monopoly in that space. Monopolies make big profits. Competition erodes those profits. That's only been the case for the last 1000 years or so. That's pretty much the story of what's going on w/ Apple.
    Mar 8 08:20 AM | 1 Like Like |Link to Comment
  • Apple: Learn From Andy Zaky's Mistake [View article]
    What burned a lot of us was the notion that AAPL ALWAYS bounces back. As it started moving down off of its $700 high, we all thought that it was a sell the news (iPhone 5) temporary re-trace to load up on for greater profits moving into the Christmas quarter. We all thought that Apple was that one stock that would defy gravity forever and just keep climbing to astronomical levels. It's still a bit of a shock that the stock reversed course so dramatically, but the point is well taken in this article: if you put too many of your eggs in one basket too often, eventually you'll have problems w/ that basket.

    I was in an Apple Store yesterday. As a reformed Apple bull, it was depressing. Gone were the usual crowds, just a hand-full of customers being trained and wandering around. Maybe it was an isolated event, but it's been a long time since I've seen an Apple Store so desolate.
    Mar 7 05:02 PM | Likes Like |Link to Comment
  • Buffett Has The Solution For Apple [View article]
    Apple has this reputation as this great innovative company. History doesn't really bear this out. Apple has taken EXISTING technology developed by other companies and outflanked its competition. That was purely a function of the brilliance of Steve Jobs, who had a unique talent to package highly appealing products. Tim Cook seems like a talented guy, but he isn't Steve Jobs. Apple is now one of several companies w/ talented people competing in a hypercompetitive market space. People like Steve Jobs and Bill Gates simply aren't replaceable.
    Mar 5 09:03 AM | Likes Like |Link to Comment
  • Apple: Buy The Steak - Hold For The Coming Sizzles! [View article]
    In my opinion, if companies like Apple and Google are banking on the next big thing being products like the iWatch or Google Glass, they've entered into what I call the goof-ball phase. These products will mainly appeal to a very limited subset of the population. There isn't a huge clamoring for a smart watch or goofy looking glasses that you can use as a monitor while driving your car into a tree.

    There's this perception that Apple is this great innovative company. I'd argue that they've never been that. They've taken existing technology and greatly improved/perfected it. The technology for what became the iPod was at Sony long before Steve Jobs saw the potential in it and brought it to Apple. PDAs existed long before the iPhone. The Palm Pilot was kind of a very primitive iPhone w/o the phone and was out a decade before the iPhone. The iPhone greatly improved on the Blackberry and offered a touch screen. The iPad is basically a very big screened iPhone w/o the phone. Apple perfected the portable music player, combined it w/ a Smartphone and that might well be where the story ends.
    Mar 2 03:48 AM | 1 Like Like |Link to Comment
  • Billionaire Halvorsen Dumped Apple In Favor Of This Tech Company [View article]
    Apple's last quarter was about the most profitable in the history of capitalism and the stock now trades w/ a P/E multiple under 10. Of course stock prices are all about the future, but does Apple's future really look that much more bleak than it did in mid-September, when it was moving towards $700?

    Sometimes we forget that the majority of trading (75% or more) is done w/ machines that are programmed to trade on momentum. The run-up and sell-off have undoubtedly been heavily influenced by HFT. I'm going to stick w/ Apple and start re-loading on fundamentals at these levels. The company needs some strong positive catalysts, but at some point you just have to say that the price is too low to be rational.

    If you back out the cash, the TRAILING P/E will be under 6 by the end of the quarter (assuming the share price doesn't change). That's an absurd implied yield. You have to assume that Apple's margins are going to completely collapse and that it'll be losing customers in large bunches to justify that kind of multiple. The stock's been stuck in a negative feedback loop for a while, but that won't last forever.

    The street doesn't seem to be showing much love toTim Cook. Amazon says its investing in the future and the stock price goes up, even though the company loses money. Apple's planning for the long term while making huge profits and the share price heads due south. Crazy. Maybe the problem is the messenger.
    Mar 2 03:44 AM | Likes Like |Link to Comment
  • Apple Bears Are Delusional [View article]
    Excellent post. A lot of us are in the same boat that you're in w/ Apple over the last several months. Apple loyalists (of which I'm one) jump all over anyone who posts anything negative and cheer the mega-bulls who put up targets like $1,111 for the stock and keep saying how cheap the stock is. Some add qualifiers like 'dirt' cheap. I happen to think the stock is fairly to slightly undervalued now. Any company w/ a market cap in excess of $400B that's in the hyper-competitive technology space IS NOT CHEAP. Everyone's waiting for Apple to introduce the next big thing. What if there really isn't anything of major significance in their pipeline? We've been hearing about Apple TV for years already. Where is it? A China Mobile deal has been imminent for at least 3 years. Where's the deal? Anyone sitting around waiting for Apple to come up w/ another iPhone or iPad or iPod is probably making a mistake. (Of course I hope I'm wrong)
    Mar 1 05:21 AM | 1 Like Like |Link to Comment
  • Apple Bears Are Delusional [View article]
    This just in: The big funds aren't making investment decisions based upon what Melissa Lee has to say.
    Feb 28 02:42 PM | 2 Likes Like |Link to Comment
  • More on Apple's (AAPL -1.3%) shareholder meeting: With rumors of iWatches and new set-tops swirling around, Tim Cook hints at new products. "Obviously we're looking at new categories -- we don't talk about them, but we're looking at them." Cook on Android's share gains: "There's a button or two we could press to make the most [devices] .... That would not be good for Apple." He boasts over half of Chinese/Brazilian iPad buyers are new Apple customers, and still thinks David Einhorn's suit is "silly." No word of a dividend or buyback hike. (live blog[View news story]
    I get a kick out of the commenters imploring Apple to just come out w/ the next revolutionary product and be done w/ it already so we can all become rich. It's not like Tim Cook can just walk into the revolutionary product/change the world building, snap his fingers and here comes the next big thing that no one had ever thought of before.
    Feb 28 07:07 AM | Likes Like |Link to Comment
  • Apple: Why Not All Stock Splits Are Created Equal [View article]
    The effect of stock splits has been extensively researched for a long time and the conclusions haven't changed: Stock splits of themselves do nothing for the value of a company. There's invariably a sampling bias in that companies that have split their shares perform well, but they were performing well before the split which created the conditions to justify the split.
    Feb 27 07:56 AM | 1 Like Like |Link to Comment
  • "High above the Alps my Gnome is hearing a rumor that Apple will announce a stock split at tomorrow's shareholder meeting," tweets Doug Kass. The rumor has led Apple (AAPL +1%) shares to spike higher. Update (2:24 PM): Kass is using the post-rumor spike to sell part of his trading position in Apple. [View news story]
    That guy is about the most notorious manipulator that there is. If he's the only source of this rumor, it's a fabrication. He'll say anything once he takes a position in a stock. We've seen him in action before and he has zero credibility.
    Feb 26 04:23 PM | 5 Likes Like |Link to Comment
  • Google Looks Like A Pre-Surge Apple With Less Risk [View article]
    Google's recent surge is mainly attributable to a binary decision made by investors who are getting out of Apple and seek another spot to place their money. GOOG has been dead money for a number of years and will likely come back to earth once the fad of selling AAPL fades into the background.
    Feb 26 09:09 AM | 2 Likes Like |Link to Comment
  • Apple: When Negatives Can Be Positives [View article]
    I get a kick out of this argument that Apple has lost its ability to innovate. Presumably innovation means some device that will change the way that people live and conduct business in a big way. They've come out w/ 3 (4 if you separate iTunes from the iPod) in the last decade. I can list maybe 20 devices that have come out in the last century that have profoundly impacted people's lives on a vast scale. telephone, radio, TV, automobile, airplane, personal computer, copy machine, fax machine, personal computer, smartphone, turntable, microwave, HVAC system, internet, CD player, DVD player, VHS player. OK, I'm struggling to come up w/ many more. You could argue that some of the above have been evolutionary rather than revolutionary. Apple has 3 revolutionary products in a decade. Most companies that have introduced a revolutionary product have had just one.
    Feb 26 06:07 AM | 1 Like Like |Link to Comment
  • Time For Apple To Waddle And Quack [View article]
    There was a clear inflection point w/ Apple when the iPhone 5 was released. The sell-off began there. The iPhone 5 is a fine product, but Apple's huge valuation require(s)(d) that it constantly come out w/ game changing products, which that product certainly was not. Mr. Market isn't easily fooled. If Apple continues to incrementally upgrade its existing product lines, the competition catches up, margins compress and so does the share price. There's nothing wrong with Apple, but it has to continue hitting home runs to justify its high validation. In competitive markets, outsized profits tend to be temporary.
    Feb 22 06:08 AM | Likes Like |Link to Comment
  • Apple: Tim Cook Isn't The Problem [View article]
    You completely misunderstood what I wrote, so obviously the world is passing one of us by and it isn't me. Better luck next time.
    Feb 15 06:29 PM | 1 Like Like |Link to Comment
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