Why Microsoft And Intel Investors Should Be Glad The Stocks Are Languishing [View article]
Hey Ron,
Good article. Without trying to dissect your thesis completely especially since I had already skimmed through this strategy when I read the annual letter from Berkshire (and I, as many others have a tremendous respect for Mr. Buffett), I am probably missing something. I can see this strategy working if your investment horizon is infinite. But in my case, it is about let's say 40-50 years. So if Intel is paying me 4+% to hold their stock and I assume that they are the same company 40 years from now, meaning that they will continue to rise their dividend and their growth is ball park the same as today thus there wouldn't be any significant appreciation/depreciation in the price per share. Wouldn't I be better off being in a stock like Berkshire that (currently pays no dividend) has outperformed the market and has averaged at least 10+% since inception?
I wasn't aware the NFLX leverages Amazon's cloud. Thank you for the information Dana. I wish I had the cojones to short both these extremely valued companies but as they say my best move here is the no-move.
Why The Living Room Is Too Small For Apple [View article]
Well first congrats on your first instablog/article although IMO you have chosen a tough subject to really "add" any value.
What you and potentially many other apple opposites are missing is that Apple IMO will not just get in the TV manufacturing/selling business bc it doesn't take a rocket scientist to know that the margins are razor thin but the objective is to expand their existing entertainment business by selling pay on demand packages thus redefine how people think of paying for their cable service. So for example instead of me paying a flat fee for 300+ channels I get when I may only watch 10-15 it doesn't make any sense.
Good article, I enjoyed reading it. One thing that puzzles me is you concluding by saying that you may be holding on to a loser. Even by your own numbers (which frankly I think they are very conservative), you said that the most downside is around $420. So my question is, what is the risk of holding AAPL here when downside seems minimal and upside can be anything? You are getting paid a decent yield for it and there is a chance (even if its 1 in a million) that they will do something with all that cash.
Also, another thing to think of is iPhone mini, which I know here is US sounds like a crazy idea, but think of places like India (with 1b+ people) that couldn't afford a $500-$800 phone but may afford a $100-$300 phone.
Finally iTV (or whatever they call it), and no I am not talking about the potential profit of building and selling TVs because margins there are crap, but Apple as a content provider.
Enormous Insider Buy Signals Loudly For Audience [View article]
Some Moves Are Consistent With Severe Leverage In The System [View article]
Very insightful article.
Is J.C. Penney Now A Buy? [View article]
14,400 Friday: Finishing Off Another Fabulous Week [View article]
To quote from godfather "how a man makes his living is none of my business. But this proposition of yours is too risky."
Cheers!
14,400 Friday: Finishing Off Another Fabulous Week [View article]
I did read it. But I just find it amusing that tunaman is choosing that same level to go short...
14,400 Friday: Finishing Off Another Fabulous Week [View article]
I love how you pull a number like 15,200 str8 out of your a***. I would love to take your money any day of the week.
@Phill
I may not always agree with your optimism, but I always enjoy reading your articles. Thank you.
Why Microsoft And Intel Investors Should Be Glad The Stocks Are Languishing [View article]
Good article. Without trying to dissect your thesis completely especially since I had already skimmed through this strategy when I read the annual letter from Berkshire (and I, as many others have a tremendous respect for Mr. Buffett), I am probably missing something. I can see this strategy working if your investment horizon is infinite. But in my case, it is about let's say 40-50 years. So if Intel is paying me 4+% to hold their stock and I assume that they are the same company 40 years from now, meaning that they will continue to rise their dividend and their growth is ball park the same as today thus there wouldn't be any significant appreciation/depreciation in the price per share. Wouldn't I be better off being in a stock like Berkshire that (currently pays no dividend) has outperformed the market and has averaged at least 10+% since inception?
Can Netflix Escape Amazon's Grip? [View article]
Can Netflix Escape Amazon's Grip? [View article]
Why The Living Room Is Too Small For Apple [View article]
What you and potentially many other apple opposites are missing is that Apple IMO will not just get in the TV manufacturing/selling business bc it doesn't take a rocket scientist to know that the margins are razor thin but the objective is to expand their existing entertainment business by selling pay on demand packages thus redefine how people think of paying for their cable service. So for example instead of me paying a flat fee for 300+ channels I get when I may only watch 10-15 it doesn't make any sense.
Regards.
Technical Tuesday: The Tide Is High [View article]
Technical Tuesday: The Tide Is High [View article]
Thank you for the article. Any thoughts on $BIDU?
VMware Problems Are VMware Problems [View article]
I am long EMC.
HP: No. 1 In Computer Sales [View article]
Lessons Learned From An Apple Bull [View article]
Good article, I enjoyed reading it. One thing that puzzles me is you concluding by saying that you may be holding on to a loser. Even by your own numbers (which frankly I think they are very conservative), you said that the most downside is around $420. So my question is, what is the risk of holding AAPL here when downside seems minimal and upside can be anything? You are getting paid a decent yield for it and there is a chance (even if its 1 in a million) that they will do something with all that cash.
Also, another thing to think of is iPhone mini, which I know here is US sounds like a crazy idea, but think of places like India (with 1b+ people) that couldn't afford a $500-$800 phone but may afford a $100-$300 phone.
Finally iTV (or whatever they call it), and no I am not talking about the potential profit of building and selling TVs because margins there are crap, but Apple as a content provider.
Disclosure: I am long AAPL.