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  • Apple's Real Advantage From Owning The Hardware And Software [View article]
    This article makes a good point about an advantage of controlling both hardware and software, and it's not the obvious one. (Somebody actually griped that it didn't make the obvious point, if you can believe it!)

    Apple is playing to it's strengths, one of which is the number of affluent users of it's products. This article points out that, with careful control of both hardware and software, Apple can leverage that strength in affluent users to push standards in the direction it wants them to go. Or at least that's what I got out of it.

    How someone can see that as a "fluff piece" - well, maybe they're just trying to do a hatchet job on this article....
    May 31, 2015. 07:15 PM | 10 Likes Like |Link to Comment
  • Apple: Expect Another Small Dividend Raise [View article]
    Borrowing is based on collateral, yes? Regardless of where the cash is, the ability to finance a major buyback is uninhibited. I think that's going to impact your basic thesis.
    Feb 18, 2015. 04:08 PM | 1 Like Like |Link to Comment
  • Apple: Expect Another Small Dividend Raise [View article]
    "We'll have to wait for a republican to take the President's seat before we see any repatriation"

    Don't agree.

    And with any luck at all, you'll be waiting a LONG TIME....
    Feb 18, 2015. 04:04 PM | 12 Likes Like |Link to Comment
  • Apple's (AAPL) CEO Tim Cook on Q1 2015 Results - Earnings Call Transcript [View article]
    I see yoy earnings of $44.44. I see share count down to 5.81. The math says Earnings Per Share (EPS) equals $7.65/share. Price over earnings (P/E), assuming $115/share, 15.0.

    Yep. 15 on the money. 15. For the most dynamic, explosive company in history.

    If ever a stock cried to be at a P/E of 30, this is the one.
    Jan 27, 2015. 08:53 PM | 15 Likes Like |Link to Comment
  • 2015 Will Be Apple's Year: Raising Price Target To $174 [View article]
    "If the iwatch is deemed a flop..."

    Of COURSE the AppleWatch will be "deemed" a flop. That's a given. The real question is will it actually be a flop?
    Jan 1, 2015. 03:50 AM | 2 Likes Like |Link to Comment
  • FY2015: Apple's Big Adventure [View article]
    Nice article, Robert! And good point about relative growth rates between market cap and share price. Stay well, and Happy Holidays!
    Nov 30, 2014. 01:53 PM | 3 Likes Like |Link to Comment
  • Do The Math: Apple's Fiscal 2015 EPS To Rise (At Least) 25% [View article]
    That may be one of the most cogent comments I've ever read, Mr. Rosenberg. I don't normally read many Seeking Alpha articles, but for some reason I began yours and not only read it but have waded down here deep into the comments section, mostly on the strength of your responses. Thanks for making this "investment" of mine worth while!

    BTW, the EPS one finds on, say, Google Finance (presently $6.19) is incorrectly calculated. To find the true EPS, one needs to add up the last 4 quarter's Net Income and divide by the latest share count. That gives us a yoy Net Income of $38.555B and, assuming a share count of 5.99B, an EPS of $6.44. I leave it to you to calculate the effect of this "actual" EPS on "actual" P/E ratio, "actual" PEG, etcetera....
    Sep 29, 2014. 05:16 PM | 2 Likes Like |Link to Comment
  • Apple's EPS And All-Time High Are Higher Than You Think [View article]
    Gary, it has come to my attention that there is another important market measure that is being affected by the "real" EPS that you've calculated, and that's PEG.

    PEG is basically P/EPS/((EPS-(EPS 1 year ago))/EPS 1 year ago).

    Wikipedia says: “In general, the P/E ratio is higher for a company with a higher growth rate. Thus using just the P/E ratio would make high-growth companies appear overvalued relative to others. It is assumed that by dividing the P/E ratio by the earnings growth rate, the resulting ratio is better for comparing companies with different growth rates.”

    So what was the EPS one year ago? It will, first, include a LOT more shares. Is that the problem with PEG? Does it only “work” (as a comparative value, which is its intent) if you have about the same number of shares over a two year period?

    Apple’s massive buybacks should be causing us to rethink all these old ways of comparing.

    It seems to me I recall Apple’s EPS had dropped a year ago to about $39/share, which is $5.57/share corrected. If we go with Mr. Morton’s $6.48/share, then that represents 16.3% growth for the ((EPS-(EPS 1 year ago))/EPS 1 year ago) part of PEG. At a “real” P/E of 14.67 (again using Mr. Morton’s number), we’d see a “real” PEG of 0.9.
    Aug 11, 2014. 10:42 AM | 3 Likes Like |Link to Comment
  • Apple's EPS And All-Time High Are Higher Than You Think [View article]
    JUst to slightly elucidate, it gets taxed twice. Say we start with $100. Apple's taxes (foreign plus domestic) chop that to, say $75. Then it goes to, say, my IRA as a divdend. I pull it out and pay taxes on it as income. That $100 becomes only $50 in my pocket. And since I'm on fixed income, that means something.
    Aug 10, 2014. 01:07 PM | 1 Like Like |Link to Comment
  • Apple's EPS And All-Time High Are Higher Than You Think [View article]
    Thanks, TechE. Now let's get to "why" I noticed it. AAPL is always undervalued just after earnings are released. That's the mechanism at work that shrank the P/E for years in the past. Analysts would estimate high earnings. Investors would say "show me". Apple would come out with high earnings. Instantly, the P/E would shrink dramatically, because the analysts were right and the investors were wrong.

    It's happening again, but this time, the "share" part of "Earnings per share" is shrinking at the same time the E part is growing. Result: Massive P/E compression - except that this time it's compounded by the utter stupidity of taking four quarter's EPS and dividing by 4, rather than taking a year's worth of Net Earnings and dividing by 4, THEN dividing by the share count.

    Look. Apple is being valued, once again, on what it actually earns. As Horace Deidu has said for years now, Apple's potential for earnings growth in the future is being valued at zero. That way lies P/E compression.

    If Apple were a startup, it would be given some amount of value based on its future potential earnings growth. But because Apple is a "mature" company, it's being valued as if its future potential growth were equal to zero. Result: A massively undervalued company.

    But here's the fun part: Apple figured all this out. And it looked around at what it could do, and said, "Hey, look at all this cash we have! Let's use it to buy up a really undervalued stock - AAPL!". So now we have AAPL with only a pitiful 62% institutional ownership, and Apple actively competing in a huge way against those institutions to buy back its own stock.

    Even a blind man should be able to figure out what happens next....
    Aug 10, 2014. 02:10 AM | 13 Likes Like |Link to Comment
  • Apple's EPS And All-Time High Are Higher Than You Think [View article]
    Yes. I think of it as earnings are a pie. If the number of slices decreases, each slice gets bigger. And in Apple's case the (Apple) pie is getting bigger!
    Aug 10, 2014. 01:39 AM | 2 Likes Like |Link to Comment
  • Apple's EPS And All-Time High Are Higher Than You Think [View article]
    Thank you! I've been saying this for over a month now.
    Aug 9, 2014. 06:19 PM | 13 Likes Like |Link to Comment
  • Apple, Samsung end patent battles outside U.S. [View news story]
    So now that Samsung is having its head handed to it on just about every level, they want to make nice. Interesting.
    Aug 5, 2014. 11:04 PM | 4 Likes Like |Link to Comment
  • Apple's Latent Rates Of Revenue Growth [View article]
    Thanks for a great summation of Apple's present state of affairs, R.P.!

    For a long time now, I've watched as Apple's upsetting of the mobile cart has rippled through. At one time, Samsung, Blackberry, and Nokia were way out in front, with Apple not even in the game. That all changed with the paradigm shift that Apple initiated. Blackberry and Nokia are shadows of their former selves, and Samsung clung on by virtue of cleaving as closely as possible to the Apple designs as they matured. But all three had the huge advantage of installed base (we could add Microsoft to this group in that regard, albeit from a non-mobile device).

    But Apple is no longer the runt of the litter. Samsung has shot its wad, tipping as many of its old customers towards its mobile stable as possible. Any growth for them will now need to come from new customers, and thus Samsung will need to compete directly with Apple's superior offerings across the board.

    Apple is imminently well-positioned for the next stage of its growth, when it captures market share from its rivals. It will not be as dramatic, but it will be sustained far beyond the vision of those who have called, yet again, for Apple's demise. As other have noted, the product lines feed one another, which is why we will see even the mighty Microsoft's hegemony under attack.

    For Apple, and for those who are committed to it, the next decade is bright indeed.
    Jun 29, 2014. 01:01 PM | 5 Likes Like |Link to Comment
  • Reuters: iWatch likely to have 2.5" display, enter production in July [View news story]
    I think 50 million is a figure someone pulled out of an orifice. Setting that up as a false number makes it almost inevitable that Apple will fail to measure up. Future stock manipulation is my guess.
    Jun 19, 2014. 05:23 PM | 7 Likes Like |Link to Comment