Why Apple Is A Short-Term Sell Based On David Einhorn's Plan [View article]
1. Dividends on common do not lower EPS. Dividends on preferred do.
2. Receiving and reinvesting dividends does not make your investment "grow much larger over time" than not receiving dividends.
3. It's entirely possible that iPrefs would "put the pep back in Apple's step" in the same way that a large amount of sugar and caffeine impacts a person--followed by a crash when the high wears off.
Why Apple Is A Short-Term Sell Based On David Einhorn's Plan [View article]
The analysis makes no sense. Even if aapl issued preferred (unlikely) the discussed first round would be only around $50B paying $2B/yr. No reason for that to lower common by more than @$50B, and certainly not until preferred actually issued.
Does Einhorn's Apple Preferred Stock Push Make Sense? [View article]
Yes. I see the proposal as positive for common shareholders. However, since it's Einhorn, where is the potential downside for aapl management and/or shareholders? It's feels like people are watching a checkers match, but aapl and Einhorn (plus whichever other hedgies may be with him) are playing chess.
Does Einhorn's Apple Preferred Stock Push Make Sense? [View article]
I doubt that necessarily would be the case. Why would it have to have different consequences to options holders than a special dividend from cash, or from a bond?
Does Einhorn's Apple Preferred Stock Push Make Sense? [View article]
Au contraire, Einhorn's proposal is the equivalent of a 20% dividend bump to the common. That's it. What it provides is the possibility of immediate 10% liquidity (sell the preferred) with all future appreciation going to an undiminished % ownership of the common, or reinvest the after tax proceeds and increase % ownership interest. The common benefits. For a shareholder who sells the preferred, corporate accounting aside, it's the equivalent of a special dividend from cash or issuance of a bond and distribution of special dividend. I still don't know enough about the potential adverse downstream ramifications of Einhorn's proposal to be for it, but would like to see some discussion of that. So far, nothing.
Look Out Below: Apple's Unit Profits Are Falling [View article]
Graph is intentionally misleading as evidenced by putting the color coded key to the right instead of above or below. Halve the height of the Y axis, and double the X axis and it wouldn't look nearly as distorted. A bit too obvious.
He only includes that in around 75% of his posts--the one historical "fact" which remains constant. Reading his posts from the beginning is fun. He claims to have first bought at $37, then accumulated to get up to 10K shares. This later changed to a claim of having bought 10K at $37. Down the line, PedroG claimed to have bought another 10K at $78 (a little bit below the low at the time) when the market crashed.
Should Apple Issue A Special Dividend? [View article]
I don't really care whether aapl issues an extra dividend in 2012 or not, but a small special dividend certainly is not a dumb idea. With cash and equivalents of roughly $40B onshore and $80Bn offshore (as of last quarter), aapl certainly could distribute a small dividend without adversely impacting the stock price, hampering acquisition/growth plans, or sending any "no longer a growth company" message. I doubt anyone would mind a small 2012 distribution under present tax rates. As I said, I don't care whether or not aapl issues a special dividend, but an "extra" dividend of $2.65 in 2012 would make a nice stocking stuffer.
Apple: Trading Faster Than The Rest [View article]
Dennis Baker has this exactly right. The high volume isn't from turnover--it's from churn used to move the stock price up and down (review the infamous Cramer video). They make the real money on the options side.
BlackBerry Vs. Apple: Which Is A Winning Bet For 2013? [View article]
Why You Should Buy Apple Now [View article]
Apple Does Not Have $137 Billion In Cash [View article]
Why Apple Is A Short-Term Sell Based On David Einhorn's Plan [View article]
2. Receiving and reinvesting dividends does not make your investment "grow much larger over time" than not receiving dividends.
3. It's entirely possible that iPrefs would "put the pep back in Apple's step" in the same way that a large amount of sugar and caffeine impacts a person--followed by a crash when the high wears off.
Why Apple Is A Short-Term Sell Based On David Einhorn's Plan [View article]
Does Einhorn's Apple Preferred Stock Push Make Sense? [View article]
Does Einhorn's Apple Preferred Stock Push Make Sense? [View article]
Does Einhorn's Apple Preferred Stock Push Make Sense? [View article]
I definitely think that's the message that some have been trying to send of late, but I don't think that's what the real money really thinks.
Does Einhorn's Apple Preferred Stock Push Make Sense? [View article]
Does Einhorn's Apple Preferred Stock Push Make Sense? [View article]
Does Einhorn's Apple Preferred Stock Push Make Sense? [View article]
Look Out Below: Apple's Unit Profits Are Falling [View article]
The Reason Behind Apple's Beating [View article]
Should Apple Issue A Special Dividend? [View article]
Apple: Trading Faster Than The Rest [View article]
from turnover--it's from churn used to move the stock price up and down (review the infamous Cramer video). They make the real money on the options side.