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nfultz1

nfultz1
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  • Buybacks Vs. Dividends: Bottom Line, Get Rid Of That Cash [View article]
    The taxes are expensed to a liabilities account. They are held there until paid. If the taxes no longer need to be paid, they would credit the liabilities account which would reduce tax expenses on the income sheet thus increasing earnings.
    Apr 1 09:45 AM | 1 Like Like |Link to Comment
  • Buybacks Vs. Dividends: Bottom Line, Get Rid Of That Cash [View article]
    Actually, the taxes are already accounted for in the earnings. However, in the event of a tax holiday Apple could move the cash home, credit the tax holding and increase earnings.
    Apr 1 09:36 AM | 1 Like Like |Link to Comment
  • Apple Does Not Have $137 Billion In Cash [View article]
    This seems to be a common misunderstanding. As the article states, the taxes have been accounted for from an income statement perspective (they have already been expensed) From a balance sheet perspective they are in a liabilities account because it represents money they owe but haven't paid. The cash balance is the cash balance. From an accounting standpoint it has to be. The cash balance must be reconciled with the sum balance of all accounts it's held in.
    Mar 5 01:36 PM | Likes Like |Link to Comment
  • Apple Does Not Have $137 Billion In Cash [View article]
    If the government repatriates the profits, it will show as income on the income statement and on the balance sheet it will reduce liabilities thus increasing net assets. The cash balance will not be affected since the taxes were never paid using cash or otherwise.
    Mar 5 08:49 AM | 2 Likes Like |Link to Comment
  • Apple Does Not Have $137 Billion In Cash [View article]
    Actually, I think the taxes were expensed, but are being held in a liabilities account. So it's reflected in net assets, but the cash balance is the cash balance.
    Mar 4 11:02 PM | 3 Likes Like |Link to Comment
  • Greenlight Capital/David Einhorn has dropped its lawsuit  over Apple's (AAPL -1.6%) Prop. 2, in response to the company's decision to withdraw the proposal and its bundled changes (in the wake of an injunction) prior to Wednesday's shareholder meeting. Apple insisted at the meeting it remains committed to giving shareholders the right to vote on the issuing of preferred stock. [View news story]
    "if you have an iphone , you are not going to buy another one."

    I'm not sure where you get that from. Most surveys show that 90%+ of iPhone owners plan on purchasing an iPhone for their next phone. In the US, most cell phone users upgrade every two years. Also, iPhone sales are growing. They sold more phones last quarter than ever before, and suppliers were cutting orders then too. They just didn't sell as many as analysts estimated. Also, there are concerns of increased competition, but I don't think there is any evidence yet that the market is saturated.
    Mar 1 05:51 PM | Likes Like |Link to Comment
  • Greenlight Capital/David Einhorn has dropped its lawsuit  over Apple's (AAPL -1.6%) Prop. 2, in response to the company's decision to withdraw the proposal and its bundled changes (in the wake of an injunction) prior to Wednesday's shareholder meeting. Apple insisted at the meeting it remains committed to giving shareholders the right to vote on the issuing of preferred stock. [View news story]
    Share price is relative to outstanding shares. Google might reach a $1,000 price, but it has nowhere near the valuation of Apple. Also, EPS is relative to shares. So even if Google has the same EPS as Apple, their actual earnings are much lower. That's why, theoretically, Google has a better chance of growing, and is warranted a higher P/E ratio.
    Mar 1 05:44 PM | Likes 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]
    A stock split announcement is unlikely at the shareholders' meeting. Any kind of announcement regarding stock split, buy back or dividend hike will likely not happen until the BOD meeting next month. There's a reason Kass is selling. The media has been priming the stock for a disappointment at the shareholders meeting for a while now.
    Feb 26 02:55 PM | 3 Likes Like |Link to Comment
  • Apple (AAPL -0.9%) roundup: 1) David Einhorn has scheduled a 2PM ET call to discuss his preferred stock proposal (webcast). Ahead of the call, he asserts the proposal is "a lot better" than a standard dividend or buyback hike. 2) As iWatch rumors grow, AppleInsider uncovers an Apple patent for a watch with a flexible touchscreen and a spring that allows it to conform to a user's wrist. 3) AU Optronics (AUO) has reportedly resolved its iPad Mini panel yield issues, and is working on the next-gen version. It might not be a coincidence the Mini is now listed as "in stock" on Apple's site. [View news story]
    So you are in favor of shareholders not having a say in the issuing of preferred shares?

    Proposal 2 has nothing to do with Einhorn's proposal to issue preferred shares and everything to do with not having to get the shareholder's approval to do so. I'm not sure he really has the shareholders' best in mind.
    Feb 21 02:39 PM | Likes Like |Link to Comment
  • Apple's (AAPL) out and AIG's in at the top of Goldman's VIP list - 50 stocks appearing as top holdings at hedge funds. 117 funds own the insurer, with 80 counting it as a top 10 holding. Apple is a top holding in 67 funds, down from 109 in Q4. Also slipping ahead of Apple is the next putative $1,000 stock, Google. [View news story]
    Actually, financial management has more to do with earnings, cash flow and return on investments (equity and assets) I think the only thing you could really fault management with financially is a poor return on cash. They have excelled at the first two.

    It's the board of directors responsibility to determine stock splits, dividends and buy backs. Those are all tools to manage the value for investors and have little to do with the running of the company day to day.
    Feb 21 11:25 AM | 2 Likes Like |Link to Comment
  • Apple (AAPL) has slashed prices for three 13" MacBook models. The price of the 13" retina MacBook Pro with 128GB SSD has been cut by $200 to $1,499, and the 256GB model by $300 to $1,699. Meanwhile, the 13" MacBook Air with 256GB SSD has been cut by $100 to $1,399. Apple's 15" retina MacBook Pro models remain priced at $2,199 and $2,799, but both have been given faster Intel Core i7 CPUs, and the costlier model now sports twice as much RAM. The moves follow a quarter where Mac shipments fell 22% Y/Y, and revenue 16%. (PR[View news story]
    Keep in mind that these models were introduced at a higher price point than previous models. Was that margin expansion? Probably not. So if they had higher costs, where did those cost increases come from? As you pointed out, aluminum is roughly the same, and the labor rate is likely the same. The difference was likely the cost of the screen and additional labor time in producing it. While I'm not arguing that the incremental cost of the retina display is now on par with the older displays, I would also point out that the price point is still higher than the standard display MBP.

    It would seem to me that there is good evidence that the incremental cost of the retina display is possibly falling, and Apple is taking advantage of it to spur more demand.
    Feb 13 08:36 PM | Likes Like |Link to Comment
  • Apple (AAPL) has slashed prices for three 13" MacBook models. The price of the 13" retina MacBook Pro with 128GB SSD has been cut by $200 to $1,499, and the 256GB model by $300 to $1,699. Meanwhile, the 13" MacBook Air with 256GB SSD has been cut by $100 to $1,399. Apple's 15" retina MacBook Pro models remain priced at $2,199 and $2,799, but both have been given faster Intel Core i7 CPUs, and the costlier model now sports twice as much RAM. The moves follow a quarter where Mac shipments fell 22% Y/Y, and revenue 16%. (PR[View news story]
    It doesn't necessarily mean margin compression. When a new technology comes out it's always more expensive at first. As manufacturing gains experience and efficiencies, the cost comes down. Additionally, sales demand picks up with a price reduction, increasing profit.
    Feb 13 12:54 PM | 1 Like Like |Link to Comment
  • Apple (AAPL) is indeed thinking of selling an iWatch, both the NYT and WSJ report. Sources claim Apple is experimenting with iOS-based watches made of curved glass, and has discussed the matter with Foxconn. If an iWatch ever arrives, there's a good chance it will use Corning's (GLW) Willow Glass, which was created with bendable displays in mind. Former Apple UI designer Bruce Tognazzini recently predicted an iWatch will arrive, while providing a long list of apps/services it might support. [View news story]
    I originally thought the iWatch idea was bad, but after reading the article above, I'm impressed. Everyone should read the article before dismissing the concept. I don't wear a watch and never thought I would, but after reading this, I would consider it.

    I hate reaching in my pocket for my phone so having a watch that executes its functions would be nice. The fact that so many people don't wear watches today points to a huge market opportunity.
    Feb 10 05:40 PM | 1 Like Like |Link to Comment
  • In Defense Of Apple: Battling The Mounting Hysteria [View article]
    Good article and analysis. I think Apple will need to release a new innovation before the fear will subside. I think we will see the stock begin to stabilize soon. With expectations finally being reset, it will be able to start growing again.
    Jan 24 09:40 PM | 1 Like Like |Link to Comment
  • Verizon (VZ) states on its Q4 call it activated 6.2M iPhones in Q4, good for 63% of total smartphone activations (up from 46% in Q3, and 56% in the year-ago period). Big Red had previously disclosed it activated 9.8M smartphones in the quarter. CFO Fran Shammo says about half of the iPhone sales involved the iPhone 5 - that remark comes as UBS points to survey data indicating a mix shift towards older and lower-capacity iPhone models. Apple (AAPL) +0.8%. (AT&T smartphone sales[View news story]
    That's a very good report for Apple. I wish VZ would have commented on the mix of tablet sales. They reported very strong tablet sales of over 7 million. If they were 60% Apple, that would be 4.2 million of the higher end cellular iPad or IPad Mini devices.
    Jan 22 09:36 AM | 2 Likes Like |Link to Comment
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