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  • Top 2 Growth Stocks, And 1 To Avoid [View article]
    Agree completely. Something very weird is going on with the lack of scrutiny of Amazon's earnings by major investment houses and the fact that many are recommending Amazon with a "buy" rating. There seems to be a concerted effort to prop up the price of the stock despite the stock's weak fundamentals. Any other stock with 5 consecutive quarters of year over year earnings declines would have been hammered. But these investment houses keep reducing estimates for Amazon to something Amazon can beat, and then play up the beat like it's some kind of amazing feat. Very strange. How this stock warrants a P/E over 160 and a PEG over 6 is beyond me.
    Apr 30 12:57 PM | Likes Like |Link to Comment
  • You Have To Have Faith To Invest In Amazon's Shares [View article]
    The $.28 that Amazon earned was mostly from a one time equity gain, not from operations. You actually think $193 is a fair price for Amazon. At that price it would still have a P/E well over 150 and a PEG over 5. The company's earnings have declined year over year 5 quarters in a row and are projected to decline again this quarter. The company's razor thin margins are declining ever further and more states are taxing internet sales. With all the risks to the business model and the poor performance I don't see how this stock warrants a P/E over 10 times higher than the average of the S&P 500. It doesn't seem to make sense.
    Apr 29 11:13 AM | 5 Likes Like |Link to Comment
  • Amazon: Let's Play Diversion [View article]
    Amazon's "blowout earnings" were the result of a one time equity gain, not from operations. Analysts promoting Amazon have conveniently failed to mention that. Wall St. seems intent on propping up the price of this stock.
    Apr 29 10:59 AM | Likes Like |Link to Comment
  • Apple (AAPL) is proving to be as good at avoiding taxes (here and internationally) as it is at designing smartphones, taking advantage of tax laws designed for the industrial, not the digital economy.  The company had an overall tax rate of less than 10% in 2011, vs. about a 24% average for non-tech companies, reports the NYT, seemingly laying out a blueprint for politicians to shift attacks from big oil to big tech. Ugh.  [View news story]
    Get a life. In 2011 GE paid 0 income taxes on $14 billion in income. That's right, zero income taxes. Where was the uproar then. Every company does what it can LEGALLY, WITHIN THE LAW, to reduce it's tax burden. People do it too, did you reduce your taxes by deducting your mortgage interest? There is nothing wrong with following the tax law and using legal deductions and exemptions. And by the way, Nokia pays a lower percentage of it's income in taxes than Apple.
    Apr 29 10:27 AM | 18 Likes Like |Link to Comment
  • 4 New Problems That Could Hurt Amazon's Stock Today [View article]
    The analysts keep dropping their estimates for Amazon to something Amazon can beat. Then the analysts don't scrutinize Amazon's earnings report and discern that the majority of Amazon's earnings were not from operations but smoke and mirrors from an equity gain. Amazon's earnings drop significantly year over year for the fifth quarter in a row, but the stock skyrockets 15%. Apple's year over year earnings were up 94% (they've been up year over year 45 quarters in a row) and it made far more money in just this last quarter than Amazon has made in it's entire history as a publicly traded company. Amazon's margin 1.5%, Apple's margin over 40%. Yet Amazon trades at a P/E more than 10 times higher than Apple. Makes a lot of sense doesn't it.
    Apr 28 06:16 PM | 4 Likes Like |Link to Comment
  • Amazon.com, The 10-Q Surprises [View article]
    wellsmb, there's a difference between Amazon, the company, and Amazon, the stock. I personally like and use Amazon the company to buy various products. They have a great website for shopping and ship promptly. The company is solid. The stock on the other hand is absurdly over valued and ripe for a tumble. That it keeps climbing despite demonstrating sustained decreases in margins and earnings and is trading at a 180 multiple is crazy. Any other company with Amazon's performance numbers would get hammered into oblivion.
    Apr 27 08:25 PM | 2 Likes Like |Link to Comment
  • Amazon.com: Investors Are Cheering After Another Quarter Of Margin Sacrifices [View article]
    Exactly right, here's a link that describes this.

    http://bit.ly/KeQeyN

    This is a quote from the above article: "An after tax adjustment amounting to $89 million coming from Equity-method investment activity, or the oldest accounting trick in the book, which alone added $0.19 cents to the EPS number, or about 95% of the entire EPS beat."
    Apr 27 10:47 AM | Likes Like |Link to Comment
  • Amazon: A Solid Beat, But Is It Overpriced? [View article]
    According to a report on zerohedge.com, Amazon's real earnings from operations was only .09, not .28. Here's an excerpt from the pertinent report: "An after tax adjustment amounting to $89 million coming from Equity-method investment activity, or the oldest accounting trick in the book, which alone added $0.19 cents to the EPS number, or about 95% of the entire EPS beat." A link to the report follows:

    http://bit.ly/KeQeyN
    Apr 27 10:42 AM | 1 Like Like |Link to Comment
  • Amazon Beats Big On Top And Bottom [View article]
    Constable Odo, you couldn't have said it any better.
    Apr 26 11:07 PM | Likes Like |Link to Comment
  • Amazon Beats Big On Top And Bottom [View article]
    Constable, you couldn't have said it any better!
    Apr 26 11:06 PM | Likes Like |Link to Comment
  • Still Cool On Amazon.com [View article]
    Even if Amazon's earnings gain was based on operations and not the "one off gain" that seems apparent, Amazon's stock performance seems totally out of whack. Amazon is up about 15% in the aftermarket. Apple, 17 P/E selling at a fraction of Amazon's 160 P/E, only went up 9% after it posted monster numbers way beyond anything Amazon did. Apple, 94% year over year earnings gain; Amazon 40% year over year earnings decline. Apple 47% margin; Amazon 1.5% margin. Apple 35% year over year revenue gain; Amazon 34% year over year revenue gain (this was the only close metric). It amazes me that the market values Amazon so much more than Apple. Apple makes real money now and it's sustained year over year earnings growth dwarfs Amazon which is actually showing a sustained year over year decline in earnings. And now Apple is even paying a dividend. I don't get it. Amazon is a good company, and it's stock would be good too if it were at a P/E below 40. But 160 and rising-give me a break. The market can appear very irrational at times.
    Apr 26 09:37 PM | 2 Likes Like |Link to Comment
  • Amazon Beats Big On Top And Bottom [View article]
    I agree completely. And given all this, Amazon is up about 15% in the aftermarket. Apple, 17 P/E selling at a fraction of Amazon's 160 P/E, only went up 9% after it posted monster numbers way beyond anything Amazon did. Apple, 94% year over year earnings gain; Amazon 40% year over year earnings decline. Apple 47% margin; Amazon 1.5% margin. Apple 35% year over year revenue gain; Amazon 34% year over year revenue gain (this was the only close metric). It amazes me that the market values Amazon so much more than Apple. Apple makes real money now and it's sustained earnings growth dwarfs Amazon which is actually showing a sustained decline in earnings. And now Apple is even paying a dividend. I don't get it. Amazon is a good company, and it's stock would be good too if it were at a P/E below 40. But 160-give me a break.
    Apr 26 08:07 PM | 3 Likes Like |Link to Comment
  • More on Amazon's Q1: Operating income of $192M well above guidance, but down 40% Y/Y. Company expects Q2 operating income of -$260M to $40M. North American sales +36% Y/Y (+37% in Q4), international +31% (even with Q4). Merchandise sales +43%, media +19%. Cost of sales growth (+32%) slightly below revenue growth, but fulfillment expense growth (+51%) well above. $960M in shares repurchased. No specifics on Kindle sales. AMZN +10.2% AH. (PR)  [View news story]
    I agree with you 100%. It amazes me how this stock performs. It's up 15% in the after hours on these numbers, yet Apple which knocked the ball completely out of the ball park with revenue up 35% (compared to 34% for Amazon), profits up 94% year over year (instead of down 35% for Amazon), and margins of 47% (instead of 1.5% for Amazon) only went up 9%. And Apple sells at a P/E of 17 compared to the Amazon's 160. Go figure.
    Apr 26 05:56 PM | 3 Likes Like |Link to Comment
  • Apple's Actual Value In Free Cash Flow Terms [View article]
    The fact that despite this attempt to steer customers to Android this last quarter of AT&Ts 5.3 million smart phones sold 4.1 million were iPhones. This speaks to the strong preference for the iPhone by most customers; it was nearly a 4 to 1 advantage.
    Apr 26 10:09 AM | Likes Like |Link to Comment
  • Apple's True Value To AT&T And Verizon [View article]
    des.blueberry, you're exactly right. What all the screwed up negative articles on Apple over the last few weeks proved is how little most "analysts" understand Apple's business. Very few had it right especially regarding the huge growth in China.
    Apr 26 09:45 AM | Likes Like |Link to Comment
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