pocohonta

pocohonta
Send Message
View as an RSS Feed
  • Looking For Bonds? Think Twice About These Apples  [View article]
    Bought Apple bonds below par few months ago and it now trades at par for a gain if I sell. Back then interest rate was also low and everyone fear the "imminent" rate rise.
    May 10, 2015. 03:56 PM | Likes Like |Link to Comment
  • Apple sells $8B worth of debt for dividends/buybacks  [View news story]
    @jumpnjoey: "How are they going to fund buybacks/dividends when interest rates are not low anymore?"

    even if 'nominal' interest rate rises, they can (and should) still borrow, because 'real interest rate' (which is nominal plus inflation) will make it worthwhile. The WACC will rise for not just Apple but ALL companies that takes on any debt.

    but unlike other companies that have debt but no foreign cash, Apple has the option to repatriate foreign cash, but will do it (and cancel out the debts) only if there is a tax advantages, like a tax holiday or (what Congress is proposing, which is to lower tax rate but force repatriaton for all)
    May 7, 2015. 03:05 PM | 2 Likes Like |Link to Comment
  • Significant R&D Increase Suggests Apple Is Working On Something Big  [View article]
    I'm thinking
    1) solar farm technology to bring electricity to the poor and remote areas first, and they'll soon shake up the traditional utility industry, in a way that current solar-panel industry cannot do, by potentially creating power system for data center and other large consumers of electricity.
    2) using its global cash hoard to create a global financial institution via Apple Pay where currency exchange rate is no longer an issue, but without the nuances of bit-coins.
    3) create additional 'complementary goods' to iPhone other than Watch...
    4) Automated home (security system, refrigerator and coffee maker, HVAC, door lock, etc.) where it knows who you are and where in the house you are at.
    5) not iCar, but the brain of the car via iPhone-centric entertainment/infotain... system. All car manufacctures will have to license it.
    May 7, 2015. 01:18 PM | 1 Like Like |Link to Comment
  • Apple Inc. 10 Year Annualized Default Probability 0.21%, Up 0.06% From A Year Ago  [View instapost]
    Does your model take into account the bonds that Apple will issue soon? (it was announced just yesterday). Do you take into account the risk premium that market placed on the bond versus riskless rate?
    May 7, 2015. 12:59 PM | Likes Like |Link to Comment
  • Apple's Beats Music deals under scrutiny  [View news story]
    If you've done no wrong, then you can sleep well at night....
    Similarly, if Apple did nothing illegal in its acquisition and positioning of Beat as a competitor to Spotify and many others, and uses its competitive advantage to gain market share, then that's just what companies do and should be applauded.

    The previous problem with book publisher has to do with price fixing and collusion among competitors (in which the book publishers admitted to collusion). As long as Apple do not collude with its competitor (and there is no reason for it to) and as long as the music industry participants do not collude the same way book publishers did (and they should know better), then Apple should welcome the FTC to investigate all it wants.
    May 6, 2015. 12:50 PM | 1 Like Like |Link to Comment
  • A Big Bite Of The Apple?  [View article]
    I'm still stuck on the first paragraph about "investment grade universe". The rest of the article lost me too. Sounds erudite until you try to make sense of it.
    May 4, 2015. 08:05 PM | 3 Likes Like |Link to Comment
  • Apple Watch: What Did Apple Just Roll Out Here?  [View article]
    wow, you can run 8 minute mile on a 7 mile practice run? not bad. You are a runner!
    Apr 29, 2015. 03:30 PM | Likes Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show  [View article]
    This article is relevant to investors on two respects:
    1) The news media led us to believe that there is a $200B buy back when in fact it is an expansion of the previously annouced $130B (translation: $70B increase, not $200B)

    2) The issuance of more debt will likely impact existing Apple bond holders, and possibly affect the AA credit rating, and raising the cost of borrowing.

    Thanks to author for bringing up the negatives which most Apple bulls need to hear but don't want to hear.
    Apr 29, 2015. 03:18 PM | 5 Likes Like |Link to Comment
  • Apple: The Good Times Roll On  [View article]
    @author: you said on first paragraph: "I remain cautious on the heavy revenue contribution AAPL has on the iPhone (69%), "

    don't you mean you remain cautious "on the heavy revenue iPhone (69%) has on AAPL" ?

    a product contributes revenue to a company. Proof read before publishing : )
    Apr 29, 2015. 02:46 PM | Likes Like |Link to Comment
  • Apple gets target hikes, Icahn praise after FQ2 beat  [View news story]
    Instead of misusing the phrase Law of Large Number, may I suggest other phrases that better describe the plight of this large company: Economy of Scale, The Bigger the Better, and Too big to fail. Or how about an actual Large Number, like $200 billion of stock buy back on top of the $150 Billion. Being the biggest and the baddest is a good thing
    Apr 28, 2015. 07:27 PM | Likes Like |Link to Comment
  • The Case That Apple Is Worth At Least $200 A Share  [View article]
    @author: You said "Basic financial theory posits that stocks and bonds are in some equilibrium with each other". I would like to know which financial theory posits this? (not knocking your article, in fact it is well written, but just want to better understand your article, because I'm not aware of such theory.) Thanks.
    Apr 27, 2015. 07:28 PM | 2 Likes Like |Link to Comment
  • Raymond James downgrades Apple; Watch ship times slip to May/June  [View news story]
    Don't shoot the messenger... the news you don't want to hear, is news worth hearing about the most.
    Apr 12, 2015. 11:05 AM | Likes Like |Link to Comment
  • Apple: Becoming A Semiconductor Powerhouse  [View article]
    Apple is NOT a semiconductor maker. They subcontract the chip making to TSMC, Samsung, and others using their modified ARM design. So, they are a big customer to the 'semiconductor powerhouses'.
    Mar 31, 2015. 01:53 PM | 1 Like Like |Link to Comment
  • Apple Watch: Revenue Projections  [View article]
    "what do regular people need it for exactly"?

    As Jim Cramer puts it: how much would you pay for a device that will prolong your life by a few extra year?".
    With the apps being developed to monitor health stats in real time basis, doctor can communicate with you just before a major illness take place, or in more common scenarios, the data collected about yourself is used to analyze your habits, health trends, and allows doctors to prescribe treatment more effectively.

    With the Research Kit, clinical trial and tests can be done faster and with more people. And other non-medical apps like the health & fitness apps for a better workout at the gym, etc.
    Mar 31, 2015. 01:49 AM | 4 Likes Like |Link to Comment
  • Why Apple TV Is Fighting For Survival  [View article]
    I read somewhere that Apple was procuring its own dedicated network bandwidth since almost a year ago (at that time no one speculated as to why they needed it, but it's now obvious). They also setup several huge data centers to expand their capacity in recent time with the most recent build-out in Mesa AZ. Their effort on TV content was also something that have been in planning for a while.

    So, this TV effort is not something half-baked, but will become one of the many "next big things" that comes out of Cupertino. It will be superior to the existing cable/dish TV and can be scaled across geography and continents.
    Mar 24, 2015. 04:08 PM | 1 Like Like |Link to Comment
COMMENTS STATS
651 Comments
917 Likes