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Rickthegeek

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  • Criteria To Consider For Apple's Q1 FY13 [View article]
    Thanks for the article, very good and useful information. What bothers me is how little research most stock investors do when it comes to owning a stock and how little they pay attention to it. That is why most people who call themselves stock investors wind up losing money.

    It does not matter what stock you own in your portfolio. The laws of buying and selling apply to them all. For example, with COKE, if the company reported today that their sugar orders to make COKE were down 50%, most people would sit up and take notice. The stock would sell off.

    If Goodyear reported that their need for rubber to make tires was down by 50%, you can bet their stock would be selling off.

    Apple reports that the orders for components to make it's iphone5 are down 50%. The stock barely sells off. If this was any other company without the halo Apple has, this stock would be down 30% to 40% to around 300 to 350 per share.

    This news is based on:

    1. Competition is catching up and taking away business.
    2. People are no longer infatuated with the product and there are other products which can do the same thing for less.

    Apple is experiencing this now.

    Disclosure: I am neither long or short AAPL. I just hate to see hard working people get burned.
    Jan 16, 2013. 04:13 PM | 1 Like Like |Link to Comment
  • Criteria To Consider For Apple's Q1 FY13 [View article]
    Nicely done.
    Jan 16, 2013. 03:33 PM | Likes Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    Nice article. This is exactly my point. More people are becoming aware of this now. There will still be people out there who believe Apple is impervious to the laws and dynamics of the business world. Apple in reality, no longer sits at the top of the pedicel alone.
    Jan 4, 2013. 07:05 PM | Likes Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    Saying that Apple is above the competition like a Porsche is to a Hyundai means that you totally miss the point of the example here. Hyundai does not compete with Porsche because they are not similar products.

    Apple's products are not light years ahead of the competition. The competition has similar products to offer. Since this is true, this means that the market share of Apple's products will fall. The demand for Apple's products is not what it was.

    Using your Porsche example, they have competitors in their class which consist of cars which are similar in price and features the Porsche has. Even Porsche has competition. Porsches are nice cars, but there are also cars made today which are much better, at a higher price point and more features that make them disimilar to the Porsche.

    In conclusion, you can defend Apple all you want to but the fact remains the same. If you sell a product that is great, it is only a matter of time before someone else sees that and tries their best to copy it, promote it and sell it. At first the product may not be close to the great product in terms of what it can do. Then, after some time the tweeks and innovation keep bringing it closer and closer to that great product until it gets to the point where the products are very similar. This is where we are RIGHT NOW!
    Dec 27, 2012. 09:05 AM | Likes Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    Of course you do. You own Apple stock and want it to rise. No surprises here. I recently sold my Apple stock for the 3 reasons mentioned here. If you think Apple is on it's way up you may be waiting for a long time. The smart money is getting out. There is more downside risk here. There is no reason to buy the stock now.

    You would have to be a fool to not think that Apple products could stand on their own forever with no competion. There are to many companies out there that know this. Apple set the bar and I applaud them for that, but these competitors have taken their products, examined them, disected them, copied them and are launching their own version.

    It is no different than car companies like Hyundai who have steadily been improving their product to compete with Honda and Toyota. Year after year you keep seeing them getting better and better. Today I would buy a Hyundai over a Honda without ever missing a beat. I have owned Honda's and they are great cars, but alas, the competition has caught up.

    What makes you think Apple is impervious to this as well. I think you need to wake up and look at the bigger picture.
    Dec 26, 2012. 10:04 PM | 1 Like Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    Apple shares are gong down because of these reasons:

    1. More competition with the same products for less money.
    2. Their ability to innovate has stalled.
    3. Their products don't do anything much different than the other products hitting the market now.

    Also, (reading a comment above), it does not matter in Apple's case what the PEG ratio is or P/E ratio. When a company, any company, falls into having the same reasons as above, they will decline. I would not buy Apple now even if their P/E ratio was 5.
    Dec 26, 2012. 05:42 PM | Likes Like |Link to Comment
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