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  • More from AIG's Q1 earnings: A slight miss on revenues ($8.56B vs. $8.64B expected) isn't damping AH enthusiasm with shares up 2.5%. Q1 after-tax operating income of $2B compares with prior-year $3B - which had included pretax income from investments (including Maiden Lane) disposed of in 2012. Insurance operating income of $3B is up 28% Y/Y. "Our priority this year is to improve operating fundamentals and reduce costs," says CEO Robert Benmosche.  [View news story]
    Agreed. I'd rather see them continue reducing float at the currently depressed share price than institute some paltry, symbolic dividend.
    May 2, 2013. 05:09 PM | 1 Like Like |Link to Comment
  • Apple's Shareholder Program: The Day The Music Died  [View article]
    It seems like the popular thing to say now is that since Apple isn't throwing all of its cash into R&D, they must be out of ideas. I can only assume that any analyst that writes this statement doesn't really understand how much money $150 billion actually is. Regarding the acquisition idea, look no further than Microsoft as a prime example of destroying shareholder value through huge acquisitions.
    Apr 28, 2013. 07:22 AM | 4 Likes Like |Link to Comment
  • Apple's Huge Buyback Could Attract Imitators  [View article]
    Interest on debt is also tax deductible, making the cost of debt that much lower.
    Apr 25, 2013. 07:28 PM | 1 Like Like |Link to Comment
  • Apple: How To Admit You're Out Of Ideas  [View article]
    This is spot on. If you issue $50B in fixed rate debt and interest rates jump, you can go out and buy that debt back in the markets for cents on the dollar. This is free money!
    Apr 24, 2013. 12:18 PM | 1 Like Like |Link to Comment
  • Why Apple's Q2 Earnings Make It A Fist-Pounding Buy  [View article]
    Right now Apple earns 1-2% per year on that cash. By essentially investing it in themselves, they will earn the 20-30% return on invested capital (ROIC) that they produce for shareholders. This is a much better use of the money and is not a wash.
    Apr 23, 2013. 11:29 PM | 11 Likes Like |Link to Comment
  • Apple: Desperately Seeking Capitulation (Part 2)  [View article]
    I've held apple for a long time, and obviously wish I had sold at $700. But I don't mind holding it here. I think that it is possible Apple management is stupid like a fox. Let the price drift down into the $300 range and then buy back 300 million shares. I know they would have to repatriate some funds to do it all cash, but they could also borrow at 3% and purchase the shares with a mix of cash and debt. This would be highly accretive to shareholder value in my view. Reducing the float to around 600 million shares would mean $40B in annual earnings would be $66 per share. Obviously earnings could plummet, but I think those fears may be overstated.
    Apr 20, 2013. 10:45 AM | 1 Like Like |Link to Comment
  • Apple (AAPL +2%) roundup: 1) Jim Cramer states Apple is "becoming the J.C. Penney of tech," while suggesting sentiment has become too negative. 2) The state-owned Chinese press has become more positive on Apple following Tim Cook's apology letter. 3) The USPTO has reaffirmed the Oct. invalidation of Apple's "rubber-banding" patent, which was successfully asserted against Samsung. 4) Apple has hired much of the team behind the original Segway, including robotics expert John Morrell. No word on what project Morrell is working on. (Goldman[View news story]
    Agree with deercreekvols above. There's no surer buy signal known to man than Jim Cramer calling a Sell.
    Apr 2, 2013. 11:48 AM | 6 Likes Like |Link to Comment
  • Japan Rings In The End Of Globalization  [View article]
    Japan as an island has relatively few natural resources. Japanese manufacturers tend to import a large percentage of their raw material inputs. The price of these inputs in Yen is going to sky rocket when inflation kicks in therefore offsetting much of the gains in increased sales abroad. Obviously this off-setting effect will vary from company to company. Just something to consider.
    Mar 13, 2013. 09:46 AM | 1 Like Like |Link to Comment
  • More on Apple: Berenberg's Adnaan Ahmad has downgraded shares to Sell from Buy, while also cutting his rating on Samsung (SSNLF.PK). With smartphone growth now fueled by emerging markets, "Apple and Samsung margins are peaking and growth is going to be driven by the margin-dilutive mid-to-low-end segment," he argues. Also, Citi has cut its PT to $480, citing weaker iPhone 5 and regular iPad demand. Citi, which cut Apple to Neutral in December, now expects March and June quarter iPhone sales of 34M and 25M, below a consensus of 37M and 32M. AAPL -0.2%[View news story]
    Analyst "sell" ratings are the best buy signals you can ask for.
    Mar 6, 2013. 10:26 AM | 5 Likes Like |Link to Comment
  • Boulder Brands: High Risk Of Covenant Breach Signals Need For Equity Raise; Critical Questions Remain Unanswered  [View article]
    By having grocers pay up front in this quarter for discounted merchandise to be delivered later, they are simply speeding up cash flows to the detriment of later quarters. This is not a sustainable method for growth in CF or sales.
    Mar 6, 2013. 08:48 AM | Likes Like |Link to Comment
  • AIG May Be The Investment Of The Decade  [View article]
    Great information in this article. I'm an AIG shareholder as I am also anticipating huge share buybacks. You're research was very helpful and I may even pick up a few more shares!
    Mar 6, 2013. 08:39 AM | 1 Like Like |Link to Comment
  • Amazon's Moat Will Widen With Amazon Prime  [View article]
    I have always been told that Amazon's strategy was that they were willing to lose money on their hardware (Kindles) so that they could sell things that they do make money on (books, etc.). So now you are telling me that they are willing to sell things that they lose money on (streaming content) so that people will buy their hardware that they lose money on (Kindles). Do I have this right? AMZN is a joke and when it comes, the crash will be epic.
    Mar 5, 2013. 09:30 AM | 1 Like Like |Link to Comment
  • Amazon's Moat Will Widen With Amazon Prime  [View article]
    Why would anyone want to be in the online streaming video business?Netflix already makes very little money while there are still relatively few competitors. Once there is a lot of competition, it seems like there will be almost no money to be made at all as content costs increase. But I guess Amazon has made it their mission to plow into business segments where there is little to no money to be made. Just look at their earnings...
    Mar 4, 2013. 09:56 PM | 6 Likes Like |Link to Comment
  • Apple's Valuation Remains A Steal, Sticking With $710 Estimate  [View article]
    Why would the nominal share price matter?
    Jan 8, 2013. 06:33 PM | 8 Likes Like |Link to Comment
  • A Portfolio Strategy For Long-Term Success: Selling Puts  [View article]
    Why does the bond value crash if a company does well?
    Jan 7, 2013. 03:15 PM | Likes Like |Link to Comment