Zynga's Deteriorating Outlook - Time To Move On [View article]
I don't see much of a discussion on ZNGA's opportunities in real time gambling all over the world. I think ZNGA will double by the next four quarters. Long and increasing my holdings in ZNGA.
The Risky Truth About Apple's Dividend [View article]
This article has nothing new in it and I wonder what is the purpose of this article? Totally superficial, redundant and almost irrelevant. Investors of $17 Bln did not think of it as any big risk to even warrant a risk premium!
The writer has assumed $ 400, 500 and 600 as prices for AAPL in 2013, 14 and 15 respectively. Then why buy only about $20 B worth of stock in 2013, why not $40B? or even $ 50B? That will be beneficial in increasing EPS from 2013 onwards. Also at 2013 prices you can buy more shares than the assumed prices for 14 and 15.
A Word Of Caution About Bank Of America's Share Buyback [View article]
Everybody has 20/20 rear vision especially critics. When BOA bought back shares, the shareholders appreciated it. Nobody anticipated the fiscal meltdown of 2008. Nobody knew of skeletons in the mortgage banking business. Mangements like anybody else can only make decisions on info they have on hand. If we can criticize BAC, we should do so of almost every major bank.
Today we are concerned with our investments as of today and for tomorrow. I think share buybacks and dividend increases will help and the mangement clearly wants to do right by the shareholders. When the economic cycle improves, this is the time for buyback and I am happy they are doing it. I am also reasonably certain BAC will approach its book value within a year and take almost a vertical flight in 2014-25, if business all over the world improves. If you waited too long, you will almost certainly pay much more than the cost of holding the stocks from now on.
After hours movers in the banks: JPM -2.5% and GS -2.1% after the two had their capital proposals approved but were asked to submit new plans "to address weakness in their capital planning processes." WFC +0.4%, BAC +3.8% after no dividend hike, but a whopping $10.5B in share repurchases and redemption of high-yielding preferreds. Morgan Stanley +0.9%. The XLF +0.1%. [View news story]
BAC's book value is about $20. Apart from a zillion branches in every nook and corner of the country, it owns the very prestigious Merrill Lynch. With the stock market movements and expansion in money management business, ML should add to the bottom line. After settling all the housing mortgage issues, now Countrywide is ready to enhance the bottom line too. Bac is to buyback in a huge way and will regularly increase dividends. In two years, the stock should be about $25. Back up your truck and fill her up.
Apple (AAPL +1.5%) has shot higher in afternoon trading. Rumors about a special dividend appear to be the trigger. (earlier: I, II) [View news story]
Kimboslice and some others have suggested that in the grand scheme of things, it does not matter when the extra dividends come or when when they buyback stock and so on. Yes, it is so. But not everybody can hang on to AAPL when they rode it all the way from, say, 100 to 705 or 400 to 705, if it starts falling the prudent thing would be to protect the profits. If AAPL management appreciates the pain of sincere and faithful shareholders, then it is their duty to alleviate it as much as it is feasible, given the long term needs of the company. With such a huge cash pile, AAPL management ( Board) could have have been compassionate and helped the shareholders with enhanced buyback and increased dividends. Of course they could have split the shares to invite larger participation, but that could be a double edged sword. $2 drop after a 10 for 1 split is equal to a $20 drop pre-split.
But I do strongly feel that AApl Management should not have waited this long to allow more than $250 drop in price. Many seasoned Chairmen/CEOs make it a point to "manage" the stock price to the extent possible in a legal and decent manner through appropriate action. Steve Jobs gave scant respect for stock prices in the market, but he was not right . He would have been a greater CEO had he respected the market movements.
I think Tim Cook, who is no SJ, will prove to be adept in managing the business, but in the manner of appreciation of faithful stakeholders, he is GUILTY as being charged.
Apple Does Not Have $137 Billion In Cash [View article]
This article is by a novice who has not attended Finance 101. Erroneous to the core.
What people call cash in the amount of 137 B is all part of the total assets, but are cash equivalent. In less than a week, when needed, AAPL can convert them to cash.
What is more appropriate is to mention that they are 'stored' in many overseas centers where AAPL is doing business and that as and when that money is brought into the US, AAPL will have to pay Uncle Sam a certain amount as taxes and hence such amount will not be available to the company (shareholders).
Apple: Buy The Steak - Hold For The Coming Sizzles! [View article]
Craig: In this chain, you should find a lot of supporters to your views and count me in too.
If the iTV has to be a life-changing introduction, then AAPL will need to buy either DIS or Comcast or BOTH. Each will cost about 110 B. AAPL can't afford to buy both for cash. If monopoly considerations won't come in the way, AAPL can issue stock and cash to buy both.
Both mangements should be allowed to continue managing their respective operations; the main reason for purchase will be to have captive content. Of course, their PEs are about 17 and hence it could be dilutive. But such a daring act will catapult AAPL to the sky.
Also because of excellent relationship between Steve and Bob Igar in the past, the first acquisition may better be Disney.
I am too uncomfortably long AAPL, hoping to be vindicated. SOON!!
The judge presiding over Greenlight Capital's suit against Apple (AAPL) over the bundling of proposals within its proxy says Greenlight has shown a "likelihood of success," suggesting a ruling in Greenlight's favor is on the way. Apple's shareholder meeting arrives on Feb. 27. (previous) Update (5:19PM ET): Full quote from Reuters. "Candidly I do think the likelihood of success is in favor for Greenlight," says district judge Richard Sullivan. Should the case go forward, he'll focus on whether Greenlight would be irreparably harmed by a bundled vote. [View news story]
I wonder what the high paid legal advisers of AAPL were doing. This seems to me to be so obvious that bundling of several issues is not generally allowed.
Einhorn obviously expected that the result /judgment will immediately perk up the stock numbers and by putting a lot of money in the options, he will get a huge leveraged return. Good for him and his investor customers.
Jaded! Very nice article taking pains to analyze various relevant numbers, comments and rumors. Congrats.
It is beyond belief for me that AAPL executives would have wanted to save a $100 million or so rather than explaining in a series of Ads how the various naysayer comments were malicious without a speck of truth in them. They could have presented the FACTS in such a way as to demolish the mischief mongers and saved the embarrassment of suffering such a huge drop in Market Cap. They could have saved the extreme anxiety suffered by faithful stockholders like me and most of you. I am still very much LONG in AAPL as I am a true believer.
4 February 'Feel Good' Factors For Apple Fanatics [View article]
I believe AAPL did not miss EPS the last time on Jan 23. Even the revenue was only a hair below the wild estimates of the analysts. I think it was the guidance that started the disaster. I don't know why writers don't stress that AAPL did beat the EPS estimates!!! The tone of most of the writings is that AAPL has been missing EPS estimates which is wrong. Also the miss in each of the previous two quarters was very marginal.
I am LONG AAPL and my only regret now is that AAPL TC/Board is not returning a lot of cash back to the investors in the form of huge buybacks and larger dividends. Hope it will happen soon.
Revisiting Exelixis And Cabozantinib [View article]
I have been in EXEL for a few years and I have extensively used different tactics, namely, Long Shares, Long Calls, Long Bull spread, covered calls, etc but somehow I can't make money. I believe strongly in Cabo and my educated gut feeling is that it is only a matter of time before it gets discovered by institutional buyers. Is there an expert out there who can throw light on why this stock does not attract the attention it is due? When it dropped so badly after FDA approval my confidence was badly shaken but I am still nibbling. I am long EXEL.
I have not seen anything in this article that is not widely known. .AAPL's profit was 13000 Million dollars and he says it dropped by a "BIG" one 100 Million dollars!!! Stump change of a miss. In Technology, all products come down in price. In due course, AAPL will introduce new products that will help increase its margins. That is the normal.
AAPL is expanding geographically. It has an established world-class brand name and unmatched ecosystem. I am LONG AAPl and I am fine with it. Watch for the naysayers and learn to ignore their irrelevant messages.
today AAPL bounced off 435 and closed at about 450. The extended market is trading at 451 plus. The market behavior may have significance to Tech Traders of whom I am not one. I will not sell covered calls now. It may be a very good time to invest in BULL SPREAD April calls that are in the money on both legs. e.g., April 410 - 440 spread. Just invest modestly as the risk is still there.
What Is The Fair Value For Apple In The Newtonian World? [View article]
The fair value of 708 is extremely conservative. The calculations, assumptions, etc are crystal clear in a well written article that exhibits no bias. Thanks are due the author.
AAPL spends humongous amount of money in R & D. Does anyone think that all that would go to waste? I think they will lead to great results that you and I cannot guess today.
AAPL has an ecosystem that is the envy of many. Is it not going to create additional opportunities for the company to increase their earnings?
Steve Jobs is gone and Tim cook is in charge. In this year, Tim Cook's achievements are not light. Of course he has no control on the share prices. I do think that part of the cash must have been returned to you and me by way of extra dividends and share buyback. It is not brain surgery or rocket science that Tim and his board cannot understand. They must have a well thought out reason. I have confidence in TYC and the board. I think, in the absence of the iconic Steve, they must be more humble and be more transparent. I don't question that they are smart.
I accept the author BIO's values at a minimum and expect AAPL to be 800 plus in two years on a basis of nominal happenings.
Zynga's Deteriorating Outlook - Time To Move On [View article]
The Risky Truth About Apple's Dividend [View article]
Apple's Valuation Is Not Rational [View article]
A Word Of Caution About Bank Of America's Share Buyback [View article]
Today we are concerned with our investments as of today and for tomorrow. I think share buybacks and dividend increases will help and the mangement clearly wants to do right by the shareholders.
When the economic cycle improves, this is the time for buyback and I am happy they are doing it. I am also reasonably certain BAC will approach its book value within a year and take almost a vertical flight in 2014-25, if business all over the world improves. If you waited too long, you will almost certainly pay much more than the cost of holding the stocks from now on.
BAC is one of my top five holdings.
After hours movers in the banks: JPM -2.5% and GS -2.1% after the two had their capital proposals approved but were asked to submit new plans "to address weakness in their capital planning processes." WFC +0.4%, BAC +3.8% after no dividend hike, but a whopping $10.5B in share repurchases and redemption of high-yielding preferreds. Morgan Stanley +0.9%. The XLF +0.1%. [View news story]
Apple (AAPL +1.5%) has shot higher in afternoon trading. Rumors about a special dividend appear to be the trigger. (earlier: I, II) [View news story]
But I do strongly feel that AApl Management should not have waited this long to allow more than $250 drop in price. Many seasoned Chairmen/CEOs make it a point to "manage" the stock price to the extent possible in a legal and decent manner through appropriate action. Steve Jobs gave scant respect for stock prices in the market, but he was not right . He would have been a greater CEO had he respected the market movements.
I think Tim Cook, who is no SJ, will prove to be adept in managing the business, but in the manner of appreciation of faithful stakeholders, he is GUILTY as being charged.
Apple Does Not Have $137 Billion In Cash [View article]
Erroneous to the core.
What people call cash in the amount of 137 B is all part of the total assets, but are cash equivalent. In less than a week, when needed, AAPL can convert them to cash.
What is more appropriate is to mention that they are 'stored' in many overseas centers where AAPL is doing business and that as and when that money is brought into the US, AAPL will have to pay Uncle Sam a certain amount as taxes and hence such amount will not be available to the company (shareholders).
Apple: Buy The Steak - Hold For The Coming Sizzles! [View article]
In this chain, you should find a lot of supporters to your views and count me in too.
If the iTV has to be a life-changing introduction, then AAPL will need to buy either DIS or Comcast or BOTH. Each will cost about 110 B. AAPL can't afford to buy both for cash. If monopoly considerations won't come in the way, AAPL can issue stock and cash to buy both.
Both mangements should be allowed to continue managing their respective operations; the main reason for purchase will be to have captive content. Of course, their PEs are about 17 and hence it could be dilutive. But such a daring act will catapult AAPL to the sky.
Also because of excellent relationship between Steve and Bob Igar in the past, the first acquisition may better be Disney.
I am too uncomfortably long AAPL, hoping to be vindicated. SOON!!
The judge presiding over Greenlight Capital's suit against Apple (AAPL) over the bundling of proposals within its proxy says Greenlight has shown a "likelihood of success," suggesting a ruling in Greenlight's favor is on the way. Apple's shareholder meeting arrives on Feb. 27. (previous) Update (5:19PM ET): Full quote from Reuters. "Candidly I do think the likelihood of success is in favor for Greenlight," says district judge Richard Sullivan. Should the case go forward, he'll focus on whether Greenlight would be irreparably harmed by a bundled vote. [View news story]
Einhorn obviously expected that the result /judgment will immediately perk up the stock numbers and by putting a lot of money in the options, he will get a huge leveraged return. Good for him and his investor customers.
Understanding Apple's Anemic Quarter [View article]
It is beyond belief for me that AAPL executives would have wanted to save a $100 million or so rather than explaining in a series of Ads how the various naysayer comments were malicious without a speck of truth in them. They could have presented the FACTS in such a way as to demolish the mischief mongers and saved the embarrassment of suffering such a huge drop in Market Cap. They could have saved the extreme anxiety suffered by faithful stockholders like me and most of you. I am still very much LONG in AAPL as I am a true believer.
4 February 'Feel Good' Factors For Apple Fanatics [View article]
I am LONG AAPL and my only regret now is that AAPL TC/Board is not returning a lot of cash back to the investors in the form of huge buybacks and larger dividends. Hope it will happen soon.
Revisiting Exelixis And Cabozantinib [View article]
Why Apple's Profits Are At Risk [View article]
In Technology, all products come down in price. In due course, AAPL will introduce new products that will help increase its margins. That is the normal.
AAPL is expanding geographically. It has an established world-class brand name and unmatched ecosystem. I am LONG AAPl and I am fine with it. Watch for the naysayers and learn to ignore their irrelevant messages.
Apple Is No Longer A 'Don't Buy' [View article]
Just invest modestly as the risk is still there.
What Is The Fair Value For Apple In The Newtonian World? [View article]
AAPL spends humongous amount of money in R & D. Does anyone think that all that would go to waste? I think they will lead to great results that you and I cannot guess today.
AAPL has an ecosystem that is the envy of many. Is it not going to create additional opportunities for the company to increase their earnings?
Steve Jobs is gone and Tim cook is in charge. In this year, Tim Cook's achievements are not light. Of course he has no control on the share prices. I do think that part of the cash must have been returned to you and me by way of extra dividends and share buyback. It is not brain surgery or rocket science that Tim and his board cannot understand. They must have a well thought out reason. I have confidence in TYC and the board. I think, in the absence of the iconic Steve, they must be more humble and be more transparent. I don't question that they are smart.
I accept the author BIO's values at a minimum and expect AAPL to be 800 plus in two years on a basis of nominal happenings.