User 283977

Apple Beats, Shares Jump

There is a paradigm shift occurring, but hardware just enables the change. The fundamental nature of the paradigm shift is media convergence on mobile/ wireless devices. Apples wide screen tablet coming out soon will compliment their iPhone. Together, these devices will allow Apple to direct access to all forms of media, and their associated advertising revenues. Voice, TV, Tela-presence, Newspapers, Books, Text Books, Lecture notes, you name it and its all converging on a mobile connection device. Apple is finishing up transforming itself into a Media Convergence Company. Of course other companies will start competing, but Apple has the advantage of first mover… that means they will pick up the first movers in the related industries. Its a good time to own Apple.

Mad Money: The Smartphone Revolution Continues

I believe you are right on the money Zoltan.

Candidates to Replace GM, Citigroup in the Dow

The purpose of an Index is that it is representative of what you are trying to measure. As a consequence, there should be representatives from key sectors of the US economy.

If all they want to do is to make a substitution, I would replace GM with a steel company like Nucor (NUE) or US Steel (X). While I was at it I would also remove City (C) and replace it with Wells Fargo (WFC) or Bank of America (BAC).

As to the effect of the replacements on the Index valuation, remember it’s a 'scaled' average. So when replacements are made, they change the scaling.

If they really want the Dow Index to be representative, then they need to consult with a technical expert that is an expert in the design of representative Indexes.

The Browser Battle: How Relevant Is Security?

Security of a users personal information or credit card information are highly important to Internet users. The reason you don't think of it with respect to browsers is that most people associate security issues with individual web sites, not with the ability of hackers to get into their PCs via a browser.

Should Google Be Paying a Dividend?

I think that would be a very good idea Eric....

Lack of a dividend is one of the reasons I have not expanded my ownership of Google... why should I give them any more of my money when there is little likelihood the stock is going to be growing in this kind of an economic environment. The exact same logic applies to ALL so called "growth" stocks.

Dell Gets Ready for a Comeback - Barron's

Tom and Hayweed nailed it... Dell is marking time... they sell products based on generic parts. Dell's stock price moves with the economy. Buying Dell now makes no sense since Dell provides no dividend. If I was Dell, I would be looking very hard at virtualization.... That would put some wind in their sails...

Apple's Jobs Takes Medical Leave; Back in Summer for WWDC?

I doubt Steve Jobs put off having the needed, obviously depilating series of medical treatments for over a year. It sounds like his doctors finally did find the source of his weight loss. Given the length of time involved to correctly diagnosis the problem, we can hope that means the problem is confined to a limited area.

It’s sad that this very private man, this hero of the personal computer revolution is now going to be subjected to having his personal health turned into a media circus by a group of rapacious legal hyenas.

This is one investor that only wishes the best of luck to Steve and his family in this difficult time. If I loose some money, its only money. What our society has gained because of this man's contributions is immeasurable.

Why I'm Selling Apple and Google Today - and Holding Amazon

If you are going to purchase Apple, Google, or Amazon, what is your six month projected profitability, and how did you come up with that figure? Is there a reason why Apple's sales should surge in the next six months? Google's earnings are based on advertising revenues. Will advertising revenues surge in the next six months? Amazon tends to drift somewhat downward after the Christmas season, but there is not a lot of data on that. However, it seems logical that retail should do best right after a successful Christmas season, and that people are more likely to sell right after peak sales for the year. So I would think Amazon will start trending downwards for a while.

I agree with the Authors decision to sell Apple and Google. They are great stocks, but given the current market conditions, I think they are mostly going to be moving sideways. And yes, Apple is going to be putting out some more insanely great products. However, I suspect people are in a cash conserving mode, and they will put off purchases of things they really don't need until they feel safer with respect to their economic prospects. I have two G4s that I want to replace, but I am waiting. Amazon appears to be at a support level, and the next support level is around $75. I see more downside potential than upside for Amazon in the next six months. So I would wait.

The perception of Apple, Google, or Amazon being currently cheep is based on their market valuation during a large speculative bubble. It took many years for that bubble to form. Ruminations that Google is going to be back at $500 to $600 at the end of 2009 do not seem realistic. Yet if you look at the current S&P projected year end price of Google, its $500…. Of course, S&P provide no method for their projections. This leaves the investor to wonder if the projection is valid, or if S&P is touting the stock….

Is Apple the Beacon of Light In This Dreary Recession?

Apple is a super innovator company. I don't think the issue concerns their ability to innovate new great products. The issue concerns the ability of people to buy those products. A lot of people lost their jobs in 2008, and a lot more are going to loose their jobs in 2009. I think Apple is more innovative then Dell, and as a consequence, Apple should drop less then Dell. However, I question the prospects for significant near term stock prices for Apple. That is why I suggest holding if you own it, and taking a wait and see if you don't.

Wall Street Breakfast: Must-Know News

Since the price of oil has recently substantially dropped, I suspect Kuwait may be signalling it wants to renegotiate. The ROH deal is now under a cloud… I would think ROH's price will be dropping, and that opens up yet more wiggle room for renegotiating.

Is Apple the Beacon of Light In This Dreary Recession?

I don't know David... Apple's products are cool. However, It looks like the economy is going to be loosing quite a few more jobs in the next six months. All of this points towards less sales of everything, including insanely great products.

I totally agree that Apple will continue to generate new and better designs and constantly superior brand experiences. However, if this was all that drove their stock price, we would not have seen it drop from $170 in September to less than $90 now. So irrespective of superior designs and customer experiences, Apple's stock has dropped 47%. If you chart Apple and Dell, their stock prices have moved in a similar fashion. This does not mean that Apple and Dell's products are similar, it just means that during the melt-down both companies stocks moved downward at a similar rate.

So the question is, will Apple's stock price increase, go sideways or decrease in the next six months? I don't see any reason for its stock price to significantly increase, but I see a lot of reasons why it would go sideways or even decrease a bit. IT budgets in businesses are way down, and people are spending less too.

By the way, I am long on AAPL, and have been a Mac user since the beginning back in 1984. It is a great company, but in today's financial environment, I think investors need to be thinking dividend yields. I suggest putting Apple, and stocks like it in a wait and see category and put you investment money into solid stocks that offer good dividends. That way your money works for you while we wait for a recovery.

Cramer's Mad Money - Is Cerberus a Hero or a Dog (12/23/08)

Cerberus has capital, and Chrysler is not a public company. If Chrysler needs capital, it should come from Cerberus, not from US taxpayers.

The Wall Street Journal is one of the primary mouth pieces for the big moneyed investment firms. Their praise of Cerberus for "risking its capital" to buy Chrysler clearly demonstrates their biased perspective. They make it sound like Cerberus "rescued" Chrysler because they are great guys and therefore deserve access to taxpayers money. However, you can be sure that Cerberus acted in its own self interests in the matter. They made a quick short-term profit, but now they face the long-term consequences of their bad deal.

Chrysler is owned by Cerberus. Therefore, tax payer money would be going to Cerberus. I don't believe Cerberus is qualified to receive tax payer money… These greedy dogs are just scratching at the door for handouts…

Cramer's Stop Trading! Goldman Has Nothing Better to Do (12/15/08)

Here we go...

Moody's cuts Goldman ratings to A1 from Aa3

Cramer's Stop Trading! Goldman Has Nothing Better to Do (12/15/08)

Downgrading strong companies like CAT, APPL, and AT&T is suspicious.
If you know a company is strong, and the market follows your downgrades, then certain actions on the part of Goldman and perhaps a few "blue horseshoe" friends should be detectable.

I can think of several ways they could they make big money by providing disingenuous ratings…. How do you think it could be done, and how could this get by the SEC?

Yahoo Needs an Experienced Brawler

What Yahoo needs most is a good business plan.