Seeking Alpha

citizenleung

citizenleung
Send Message
View as an RSS Feed
View citizenleung's Comments BY TICKER:
Latest comments  |  Highest rated
  • The Future Of Apple Pay [View article]
    I am long AAPL. That said, the chances of Apple Pay disrupting Visa and MasterCard are between none and none.

    Here are the steps of a credit card payment:

    1. The cardholder presents a credit card to the merchant to pay.
    2. The acquirer (the merchant's bank) pays the merchant the amount of the credit card sale.
    3. The issuer (the bank that issued the card to the cardholder) pays the acquirer. Visa and MasterCard serve as networks to connect the acquirer and the issuer and facilitate this transaction.
    4. The cardholder pays the issuer.

    Apple is not the cardholder, the acquirer, the issuer, or the network, and unless you shop at an Apple Store, Apple is not the merchant, either. In other words, Apple does not play an irreplaceable role in transferring money from the buyer to the seller. To think that Apple can create a network of Visa and MasterCard's breadth or to become a closed-loop like American Express, even over a decade, is sheer lunacy. Even spending every penny of Apple's gigantic cash hoard to do so will not guarantee success.

    What Apple Pay does brilliantly is to make step 1 of the payment process as easy, private, and secure as possible. These qualities will likely cause more people to want to buy an iPhone and, after joining the ecosystem, to buy even more Apple products.

    Finally, to suggest that the money saved from removing Visa will be passed on to the consumer is naive. Either Apple will increase its fee or the retailers will pad their bottom line (most likely both). There will be no savings.
    Nov 6, 2014. 10:36 PM | 29 Likes Like |Link to Comment
  • Apple Set For Strong Sales Of iPhone 6 In Just A Few Weeks - But Is It Too Little, Too Late? [View article]
    It's sad to see an adult whose life is so empty that he needs to define himself by what stock he shorts.
    Aug 28, 2014. 02:30 AM | 26 Likes Like |Link to Comment
  • The Decline of Google [View article]
    So what if Google lost to Baidu in China? Let's see Baidu replicate its success in any place other than China. I give their chances somewhere between 0 and 0.000001%.

    Google's wise to get out of China. It's more a business decision than an ethical one. China woos foreign multinationals with the siren song of outlandish growth and low labor costs. Actually, China's out to steal as much IP as possible to build companies to compete with the foreign companies--first domestically and then abroad. That's the true cost of doing business in China, and more and more companies are adjusting their strategies or leaving.
    May 17, 2010. 10:22 AM | 19 Likes Like |Link to Comment
  • Predictable Fast Growing Healthcare Dividend Growth And Growth Stocks For Your Retirement Portfolios: Part 5 [View article]
    I'm up almost 100% on JNJ, NVS, and NVO, and well over 100% on BDX. I will stay long--probably forever. I was up over 100% on ABT and ABBV before I sold them last year. I've been stupidly in and out of GILD, or I would have been up well over 100% on that one, too. I've been back in GILD since $70, and will hold that one long-term, too.

    Who says that investing in mega-cap health care is not the way to go?
    Feb 5, 2015. 04:44 PM | 16 Likes Like |Link to Comment
  • Debunking The 'Dividends Don't Add Shareholder Value' Myth [View article]
    Chuck is not saying that companies that do not pay dividends are bad or that dividend paying companies are better than those that do not pay dividends. He is merely saying that dividends are good, and that statement is neither silly nor pointless. It is a simple fact.
    Mar 13, 2014. 04:43 PM | 15 Likes Like |Link to Comment
  • Why Accomplished Dividend Growth Investors Can Ignore Price Volatility [View article]
    You will always win some and lose some in the market. If you focus on dividend growth stocks, you will likely win a bit more and lose a bit less. I'd take that deal.
    Mar 21, 2013. 04:34 PM | 14 Likes Like |Link to Comment
  • Is The Perfect Storm Here? [View article]
    " ... China, where capitalism now thrives unfettered."

    This statement reveals stupidity, foolishness, or ignorance (or perhaps all three). The Chinese leadership is currently hard at work constructing the next 5-year plan. The plan will be executed by state-owned enterprises that march to Beijing's orders. Very capitalistic.

    Are you so deep in Tea that you've lost your common sense?
    Jul 20, 2012. 12:49 PM | 14 Likes Like |Link to Comment
  • Kinder Morgan: Making Sense Of The Trans Mountain Debate [View article]
    Climate change is real. Even many energy companies publicly declare that it is real.

    I own KMI, SLB, NOV, STO, and SU because I believe they can thrive whether humanity deals with climate change or not.
    Sep 12, 2014. 07:30 AM | 13 Likes Like |Link to Comment
  • The Case for an Imminent Correction [View article]
    The author is talking about contagion, not H1N1. Do you know what a metaphor is?
    May 4, 2010. 03:34 PM | 13 Likes Like |Link to Comment
  • The FHA is raising its mortgage standards, with requirements like larger down payments and higher credit scores. Normally this would be a good thing, but since the majority of buyers are first-time home buyers using FHA financing, the FHA's timing could have a pretty big impact on the still-anemic housing market.  [View news story]
    First time buyers should thank their lucky stars at the low rates. If they need help beyond that, they should be renting.

    The suggestion that the FHA's timing could have a "pretty big impact" is laughable. The only effect is that there will be better loans.
    Aug 15, 2010. 02:16 PM | 12 Likes Like |Link to Comment
  • I Love My 'Magic Pants' And My Partners Wear Them Proudly [View article]
    You just don't get it, do you.

    The Nifty Fifty fell because of absurd valuations, not because they are blue chips. If dividend stocks fall in similar fashion, it will because they are vastly overvalued. Throughout the fall, DGIs will continue buying and receiving dividends and companies will continue raising dividends.

    Why do you think Buffett loves market corrections?

    Rising interest rates will slaughter bond funds much more than dividend stocks. The bond funds that in which the likes of Swedroe believe deserve a 10-40% allocation because infallible studies tell them so.
    Mar 20, 2014. 07:47 AM | 11 Likes Like |Link to Comment
  • I Love My 'Magic Pants' And My Partners Wear Them Proudly [View article]
    @varan

    "However, I am fascinated by the aspect of human behavior that leads people to immediately attack him when he writes something that does not comfort them."

    You say that the comments are attacks. I say that people are calling out Swedroe on his bull. Seriously, can you fathom the mental jujitsu required to simultaneously support efficient market hypothesis and follow the greatest exploiter of market inefficiencies? I wish I could be right all of the time, too.

    One group that Swedroe definitely does not comfort is his clients. How can one look a client in the eye, tell the client that minimizing expenses is a pillar of his investment philosophy, and then turn around and charge him a fee to invest him in funds that themselves charge fees?
    Mar 19, 2014. 09:15 PM | 11 Likes Like |Link to Comment
  • Why Google (GOOG) increasingly considers Facebook a mortal threat: "The company that controls the traffic gets the power and the money... Social networks drive an ever increasing share of traffic on the internet, and that traffic is power and money." The threat is to Google's standing as the central internet company "that everyone gravitates around."  [View news story]
    I find it funny that people complain about Google's privacy issues when they voluntarily vomit everything about themselves onto Facebook.
    Apr 22, 2011. 11:56 AM | 11 Likes Like |Link to Comment
  • China mulls ban on public smoking, tobacco ads [View news story]
    Breathing the air in Beijing is worse than smoking a cigarette.
    Nov 25, 2014. 08:12 AM | 9 Likes Like |Link to Comment
  • Bank of America: Why It's Scary Being a Bank in America [View article]
    Running a profitable bank is not rocket science. How hard is it for a bank to lend at a higher rate than it borrows, charge fees, do due diligence on its loans, and not overleverage?

    Sensing a friendly political environment, the big banks convinced the government to allow them to run wild. Instead of acting as banks, the big banks put all their energy into lending recklessly, gaming the markets, and peddling exotic financial products. We are all reaping the consequences of three decades of poor decision-making--in Washington and at the banks.

    Big banks cry at lost profits, but how real were those "profits" anyway? How can an industry of pushing paper back and forth grow from 3% of the S&P 500 in 1990 to 22% in 2006? If big banks make less money than they have in the recent past, we will all be better for it.
    Jul 19, 2010. 11:46 AM | 9 Likes Like |Link to Comment
COMMENTS STATS
268 Comments
760 Likes