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  • A Penny From Amazon Costs You $1.58: Why Earnings Don't Matter [View article]
    Maurer: I thought that I would come across a Nobel Prize winning idea when I started to read your big write up. Nobody wanted to know from you that people who are buying AMZN is looking at P/S but that does not make rational investor and you at the end say that you are not buying AMZN as you'd be paying a high price for every penny. Don't try to say that eps does not matter and then conclude that P/E matters. Do you know how much is a share of AMZN worth- it is about $25.00 which would be the present value of the indefinite series of all future earnings per share (I have assigned a P/E of 14).
    Can you tell me why AMZN should be worth more than WMT per share)?
    Nov 23 04:56 PM | 2 Likes Like |Link to Comment
  • The Apple Samsung Patent Fight [View article]
    Worstall: you wrote this wonderful article and keep saying that if other parties have reached agreement with Samsung to pay 2-4% of revenue for the use of 3g standard but you do not know of any other handset maker that you can name and you know who are paying MSFT 5% for the use of whatever it is. The presentation does not make sense. You should make your writing self sufficient, tell the whole story or do not say anything until you know the whole story. I read your writing because I thought it would say something about the court's decision in France ( was not Nov 15 the date? or some court in Germany where the court delayed hearing )
    Nov 18 04:36 PM | 2 Likes Like |Link to Comment
  • Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
    at present an article that explains the move of the stock from $420 to $375 would have been more appropriate. everything else is just platitude! Amzn earning a fraction of what Apple earns commands a P/E which is an order of magnitude higher. As people say what's is the use of going to college our plumber just went on a world cruise!
    Oct 3 10:14 AM | 2 Likes Like |Link to Comment
  • Bank Of America: About $6 Of Downside And $24 Of Upside [View article]
    You are mixing two big issues: Solvency of USA and solvency of USA banks. Solvency of USA happened because the Role of central government depends on the kings and queens who adorn the Halls of Congress and Senate, these people spend money as if there is no tomorrow and know fully well that they can maintain their kingdom by spending money in a way that keeps their voters happy. And USA can always print money and pay the interest. The solvency of banks became critical due to the program undertaken by the govt. of USA to make everybody homeowner, the banks loaned the homeowners money, so the homebuilders could go on building new homes and banks were infused new capital - FNMN and GNMN invested in these mortgages by buying these mortgages from BAC. CITI, etc. and with time passing by the homeowners could not meet their mortgage obligations and the banks could not replenish their resources as FNMN, etc would not buy these bunched Mortgage Backed Securities and the banks found themselves holding billion dollars of non performing mortgages. Of course this is just a skeletal presentation of the origin of misfortune of BAC, etc. For Bac thie management did more to kill the banks, BAC bought Merrill, Lynch, and I do not know why BAC had to buy MLPFS when it still had non zero equity, it is not that MLF was going out of business, then it bought Countrywide without proper research. The upshot is that nobody got rich from the banks side and some of the homeowners sang sad songs to win the hearts of the Congressmen and senators who came heavy on yje banks and Mr. Ken Lewis said bye, bye, thinking enough is enough and there was nobody to take over BAC and the shareholders of BAC are now holding the bag. So, you see there was no fraud but incapable of handling of banks and the banks got a black eye for trying to do good. I hope you would feel a little sympathetic to BAC now.
    Aug 28 05:02 PM | 2 Likes Like |Link to Comment
  • 8 Reasons Why Bank Of America Stock Is Poised For A Major Rebound [View article]
    the presentation is informative and shows that the author is interested in BAC, the first requirement for any write-up to be meaningful, lo and behold the author's wish is real, Mr. Buffet is investing and the share is alive agin! Now, where are those Arabian rich investors, some bin-waleeds anywhere?
    Aug 25 10:42 AM | 2 Likes Like |Link to Comment
  • Production Economy vs. Consumption Economy [View article]
    So you want to produce more, such a nice exulted idea and who are going to empty the inventory? The consumers and who are these consumers, the capacity utilization most probably is trying to open our eyes. Remember the steel industry, every worker had a house (with underlying mortgage ), huge fringe benefits, the story is repeated in what happened to the auto industry. The scenario is getting blurred and very big, the international business, all the manufacturing facilities of American companies abroad ( sort of capitalist colonization ), all the foreign worker workers to PRODUCE for American companies and the products for consumption abroad and the profit staying abroad providing business for foreign banks and these poor dollars will never see American sunshine as the companies have to pay taxes to bring the profits earned abroad home. Remember, to consume the products have to be produced and all the raw materials plus labor used are of foreign source (this includes the huge fringe benefits enjoyed by American workers), just imagine the impact on social security benefits if all the foreign workers were domestic workers! So, while you ( the wise people ) are theorizing if USA should be a producing economy, the rest of the world is meeting their own demand through the auspices of American companies (the need for tax havens have decreased significantly ), you probably should sit down with the American laborers and explain why the Californian lettuces are being picked up by Mexican workers, why brooms are being manufactured in Mexico and Hon Hai employees are producing iphones, etc. why the domestic corporations are gradually becoming international companies and still national debts are unmanageable and why you can come across USA made weapons anywhere under the sun.
    Aug 12 01:03 PM | 2 Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    this country came into being due to the initiative of G. Washington, oratory of J. Adams and thoughtfulness of Jefferson. What has happened to that country! No foresights in anything that is being embraced by the Administration shows so much party politics that the "people" which is so prominent in the definition of Democracy is almost absent, why the administration wants to rob the citizens of resources in the name of "people's" welfare, why the taxpayer are not allowed to spend their own money for their benefits by themselves! the administration should see that its love is killing the object of love, be that the disallowance of jets for executives or special provision for oil companies, at the beginning, time of the robber barons looking over the shoulder was absent and the country was flying high. Don't bring the country down in the name of doing good for them. Compare the defense budget of the rest of the world with that of USA, do we need to increase weapons inventory? Why not pass on to he next generation a clean national balance sheet instead of warehouses full of F-15, z-nn, and weapons of mass destruction. Let us build hospitals, schools, colleges all over the world with the left over money instead of selling to the world weapons that kill each other.
    Jul 7 09:31 AM | 2 Likes Like |Link to Comment
  • Use Discipline When Trading the 200-Day Moving Average [View article]
    The wise man said if it goes below the 200 whatever it is watch out as there is no more support and the stock is heading for its birth date suit. Pray tell, has it happened that way??? Are we going to say, enough is enough to all these wise men from wherever?
    Jul 3 11:44 AM | 2 Likes Like |Link to Comment
  • Is Apple Losing Its Shine? [View article]
    This article opened with a question and because this what every investor likes to ask I read it through. But, alas the author did not answer his question and I wasted a few minutes.
    Jun 30 02:42 PM | 2 Likes Like |Link to Comment
  • Forecasting $590 per Share Price Target for Apple [View article]
    we are all dying with suspense. How big is your crystal ball or whatever it is? Do you know the p/e of GE? It is a conglomerate and market has hard times to assign the multiple to conglomerate and that is when we hear sum of parts are higher than the whole and spin-0offs start. Market is in love with AMZN but soon it will wake up to realize that it is a horizontally spread conglomerate and there will be a multiple compression. AAPL is being valued as a horizontally spread conglomerate but it is a vertically diversified company, at each step the product comes out as a natural by-product, the growth in AAPL is pure Organic vs. AMZN's artificial. The day of reckoning is coming soon for AMZN and it will face the fate of GE and ITT (remember Wonder Bread).
    Jun 27 10:59 AM | 2 Likes Like |Link to Comment
  • Why Apple Is Worth More Than $550 [View article]
    I have come across the phrase, "law of large numbers" just what it is? I am just wondering how you derive stock price of 556 by dividing the implied equity of $514 m by the number of shares which is about 550 million. I am getting a share price of 514/550 , which is less than a dollar. Another item, will anybody correctly report the cash position of Apple, I have seen numbers as high as 62 billion.

    Lastly, for once I would like to see somebody present valuation of AAPL displaying faith in their computation by declaring that they have zillions invested in Apple. Almost everyone presenting valuation at the end tells that they do not have Apple holdings.
    Jun 21 02:07 PM | 2 Likes Like |Link to Comment
  • Are Apple Shares Overvalued or Undervalued? [View article]
    dear Mr. Nicholas: your presentation is like a strainer, so many holes, you must be getting paid by some "hedge fund" to encourage
    "shorting" since when membership in 61 percentile os an honor, of course you would know that as you belonged to 61 percentile in your graduating class. And I have to somehow reach Mr. Graham that we should use free cash flow to evaluate share price as the net income varies with method of accounting, I do not know how the IRS is happy with net income taxation or generation of reporting corporate results approved by the FASB or other bodies. Now, I do not know what is free cash flow but I know that it is not the return on investment which has to be after taxes and corporation do not pay tax on free cash flow. To be fair you should have presented the fcf for companies that claim p/e higher than 16 or so. I hope that you never write another piece of g like this one in future. By the way the M-M theory uses the net income to show that debt vs equity does not affect valuation.
    May 13 06:56 PM | 2 Likes Like |Link to Comment
  • Will Amazon Save Netflix From Its Overly Optimistic Self? [View article]
    . The 20 million of new customers- who said that these people are not already Amazon's customers? And will remain NFLX customers? And NFLX may abandon its empire building spree as it learns from its experience. NFLX may be a viable idea in USA where people need to tickled to laugh (unlike the rest of the world and Canada with 10 months of winter and 10 m citizen ) and spends lot of time in front of TV.
    May 6 03:29 PM | 2 Likes Like |Link to Comment
  • 5 Retail and Tech Stocks Worth a Look [View article]
    You are wrong about AAPL- no body is throwing all the accolades at AAPL.You do not have to worry about AAPL, it is probably sitting on the same back bench as RIMM. It is not AMZN that behaves like living dead. It does not show any return on equity growth, I mean eps. No. It does not have show any growth in eps, all it has to do is show that its eps will grow in future and "open sesame" the market will throw at it p/e like you have never seen before. For a quarterly eps of .44 (straight line eps for year make it 2.00) its p/e is 90. So, why other companies have to show any present eps growing with reference to previous quarter- they should give away products, inflating top line and that should satisfy Analyst, Gene Munster. No. you should not worry about GAP, it has good growth plan, any day now it will appreciate like Abercrombie.
    Apr 27 10:34 AM | 2 Likes Like |Link to Comment
  • BlackBerry Playbook: What the Reviewers Are Saying [View article]
    This is a nice presentation of product appraisal, like, movies critic or valuation of a house which have several features to discuss. But it misses to present the price of RIMM's product. When you say a product X is competing with product Y one has to say something about the market, is it a perfectly competing market, is entry in this market capital intensive, how many products are there, why this particular product is competing with Y,how about the substitution effect ? All these have to be presented in a coherent manner. I do not why RIMM's product is competing only against Apple's product? If there is no other product why RIMM chose to go against ipad? I wish people would stop saying this product or that is a good competitor against Apple's product when before Apple started to produce such product giants like MSFT, CSCO, AMZN, etc did not see ay market for that product and tiptoed into it only after Apple's thing were found to be viable with WORLD OVER market. There is room for any good product BECAUSE THIS WORLD NEED GOOD PRODUCTS THAT WOULD ENHANCE HUMAN BEING'S STANDARD OF LIVING. Before the advent of cell phone people entrapped in coal mines left relative above ground who could only chew their nails- now they can communicate with each other.
    Apr 15 07:07 PM | 2 Likes Like |Link to Comment