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GaltMachine

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  • A Cheaper iPhone Would Confirm A Lack Of Innovation And Declining Margins At Apple [View article]
    Judging by the comments above, AAPL still remains the most loved stock in the market even after a large decline. That's saying something.
    Jan 9 12:02 PM | 2 Likes Like |Link to Comment
  • On Investor Concerns, And Why Apple Should Trade Above $700 [View article]
    Tack,

    Could be April launch date.

    http://bit.ly/TUlIQm
    "Samsung's New Galaxy Phone May Have Unbreakable Screen"

    The Galaxy S IV is also expected to have bigger and better display, powerful quad-core processing power and a 13-megapixel camera, with picture density improving to 441 pixels per inch (ppi), a big improvement from the Galaxy S III's 306 ppi and better than the iPhone 5's 326 ppi."
    Dec 6 09:50 AM | Likes Like |Link to Comment
  • No One Wants The iPhone? Think Again [View article]
    Ronin,

    I was trying to offer an explanation for the low P/E, if you don't like it ignore it.

    Your approach is simplistic - quality of earnings, their stability, growth potential, and margin expansion all matter in the price and the calculation of value which are all forward measures. It is art, not science.

    If there was no concern about these future values, the stock would not be trading where it is given its past performance.

    There has to be some explanation other than it is "undervalued"
    to explain why it has a lower relative valuation than a NTAP or MSFT for example especially in view of how much better a company it is.

    Good luck.
    Aug 10 02:56 PM | Likes Like |Link to Comment
  • No One Wants The iPhone? Think Again [View article]
    Bret,

    Two ways to look at the P/E ratio - one is on the price the other on the earnings.

    If the presumption is that those earnings on a margin basis are way higher than is typical for an consumer electronic's manufacturer then there is always the risk of a reversion to the mean in those margins.

    So in effect, if earnings start to "normalize" because of intensifying competitive pressures, less differentiation, etc, you could still have strong sales growth but with a corresponding drop in overall profit as a percentage of sales.

    So perhaps, the valuation of AAPL reflects the "inflated" earnings and you are in fact paying a PE of 20-24.

    Otherwise the current valuation really doesn't make sense because it does seem quite cheap by most standards.
    Aug 10 10:51 AM | Likes Like |Link to Comment
  • No One Wants The iPhone? Think Again [View article]
    "Cool" is a faddish positioning. It's no longer cool when it is widely owned.

    AAPL makes great products, however as an investor in the stock the key issue is whether those fabulous margins will be maintained along with the "cool" factor.

    Also, as a non-AAPL user I can't quite understand why they don't have a phone with 2 different sized screens to satisfy both sets of consumers. It just strikes me as a totally missed opportunity.

    Anybody who has held a Samsung 3 in their hand side by side with an Iphone will have a hard time letting the Samsung go if you like the extra visual real-estate. Right now to my eyes, the Iphone looks like last generation technology - thick, old, and heavy -compared to the S3 even with its elegant packaging.

    I fear I may have unleashed the ire of the AAPLbots :)
    Aug 9 04:46 PM | Likes Like |Link to Comment
  • The Apple iPhone 5: Put Up Or Shut Up [View article]
    Tack,

    You will arouse the wrath of the AAPLbots. Beware!

    I would never want to be tied to a single manufacturer's eco-system but that's just me.

    This period reminds me of the early 90's when MS's inferior technology got good enough to almost destroy Apple. Once the lines are blurred and the distinction begins to be lost who knows what can happen?

    Unlike that period in the 90's there was/is no Steve Jobs to get it right and I suspect he will be missed greatly.

    My wife has the Galaxy 3 and man does it ever rock. Blows away the Iphone in my opinion but I am not an Apple fan so can't say for sure but just visually only a diehard would choose the Iphone over it if you held them in your hand side by side :)
    Jul 31 04:55 PM | 2 Likes Like |Link to Comment
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