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Pts117

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  • Microsoft Is Far Too Cheap To Ignore Any Longer [View article]
    I agree that MSFT is relatively cheap on a pure multiple basis, but this is pretty consistent accross the board with the mega cap tech names (excl a special few)... I think that the market is recognizing that the world of tech we live in today will not exist in 5-7 years (cloud, mobile, wearable computing, increased connectivity, etc...) so it is very difficult to project who will be left standing at the end. In fact, even the behavior of the mega caps implies this - you don't pile up 150B in cash (AAPL) or 68B in cash (MSFT) if you have a high degree of certainty in your business model.
    Mar 25, 2013. 04:43 PM | 6 Likes Like |Link to Comment
  • "Here's a novel way to drive up a company’s share price," writes the NYT's Jeff Sommer. "Pay billions of dollars in additional taxes." Forensic accountant Robert Olstein reckons that companies such as Apple (AAPL), Microsoft (MSFT) and Cisco (CSCO) should repatriate the tens of billions dollars they hold abroad, pay tax on it, and then use the rest of the cash to repurchase stock. That would boost their share prices by at least 20%. [View news story]
    "They are just sitting out their time, till another one time taxholiday."

    You are missing the entire point, they shouldn't have to "sit out theirtime" because the whole idea of taxing global profits is insane.

    "Regarding how they do it? For instance a royalty payment to aforeign subsidiary, it is already as simple as that."

    Royalties are Subpart F relevant income because they areconsidered foreign personal holding income, meaning they areimmediately subject to US taxation and do nothing to avoid the USdouble taxation.

    Can you please define what you consider "US income" and how it"goes over seas?"
    Mar 25, 2013. 03:29 PM | Likes Like |Link to Comment
  • "Here's a novel way to drive up a company’s share price," writes the NYT's Jeff Sommer. "Pay billions of dollars in additional taxes." Forensic accountant Robert Olstein reckons that companies such as Apple (AAPL), Microsoft (MSFT) and Cisco (CSCO) should repatriate the tens of billions dollars they hold abroad, pay tax on it, and then use the rest of the cash to repurchase stock. That would boost their share prices by at least 20%. [View news story]
    good stuff cincin - agree 100%!

    I have always had an interest in philosophy, but making money has always gotten in the way! started out my freshmen year in college as a philosophy major but switched to finance based on the obvious economics of a philosophy degree.
    Mar 25, 2013. 12:39 PM | Likes Like |Link to Comment
  • "Here's a novel way to drive up a company’s share price," writes the NYT's Jeff Sommer. "Pay billions of dollars in additional taxes." Forensic accountant Robert Olstein reckons that companies such as Apple (AAPL), Microsoft (MSFT) and Cisco (CSCO) should repatriate the tens of billions dollars they hold abroad, pay tax on it, and then use the rest of the cash to repurchase stock. That would boost their share prices by at least 20%. [View news story]
    Companies are going to do the following with their cash overseas:
    1. Reinvest it in their business - upgrade facilities, invest in R&D, hire more staff to handle the ever increasing complexities of the world, etc... Because of the global tax system, this will not be spent in the US - so it has a compounding result over time.
    2. Make acquisitions - this has already started and will continue...
    3. Hold it as an economic buffer
    4. Use it as collateral on domestic debt issues
    It is absurd that you think companies should pay taxes on income earned outside of the US borders to protect an uncompetitive government rather than create a smart competitive tax policy that works with the economy. Especially since corporate taxes are one of the most regressive taxes in the US.

    Can you please define what you consider "US income" to be and explain to me how it "goes overseas?" It does not sound like you actually have a deep understanding of what is actually happening, so I recommend doing more research. For example, Luxemburg and Bermuda are minimally used by US based MNEs relative to other locations as a result of Subpart F constraints (excluding companies who move their HQ out of the US). The NL, BE, CH, and IE are the big four in Europe because of the manufacturing base and other countries outside of Europe are becoming more competitive as we speak - Singapore, Canada, etc... Corporate tax income is a surprisingly small proportion of total US tax revenue - in addition is a regressive tax system, so trying to play populist games rather than becoming competitive is pretty stupid considering the number of the jobs MNEs create in their home countries. The US would be much better served to aim for a competitive tax system rather than trying to shield itself from the impacts of a poorly managed federal government.

    For reference, US companies are the only ones operating under these ridiculous constraints since the US is the only developed country in the world with a global tax system...
    Mar 25, 2013. 10:38 AM | Likes Like |Link to Comment
  • "Here's a novel way to drive up a company’s share price," writes the NYT's Jeff Sommer. "Pay billions of dollars in additional taxes." Forensic accountant Robert Olstein reckons that companies such as Apple (AAPL), Microsoft (MSFT) and Cisco (CSCO) should repatriate the tens of billions dollars they hold abroad, pay tax on it, and then use the rest of the cash to repurchase stock. That would boost their share prices by at least 20%. [View news story]
    one more thing... narrow minded people assume that the only reason that companies have cash outside of the US is because of their ability to take advantage of the system, but this is not true. the real reason why companies have hundreds of billions of dollars parked over seas is because they have operations over seas. Look at pretty much any US based multinational - they all generate around half of their sales over seas. Sales generate cash and income, so money is made and sits over seas because of the global US tax system. This has three deadly results:

    1. US cash is used for distributions - meaning less cash available for US investments
    2. Cash accumulates outside of the US and is reinvested in businesses outside of the US
    3. Companies prefer to set up HQs outside of the US because it is easier to manage their business.
    Mar 25, 2013. 03:18 AM | Likes Like |Link to Comment
  • "Here's a novel way to drive up a company’s share price," writes the NYT's Jeff Sommer. "Pay billions of dollars in additional taxes." Forensic accountant Robert Olstein reckons that companies such as Apple (AAPL), Microsoft (MSFT) and Cisco (CSCO) should repatriate the tens of billions dollars they hold abroad, pay tax on it, and then use the rest of the cash to repurchase stock. That would boost their share prices by at least 20%. [View news story]
    are you a corporation?
    do you have operations in other countries?
    are you generating around half of your sales in other countries?

    you should pay taxes in the country where the income is earned, not on all income regardless of source.

    The US tax code is complicated for one reason: the US government is not competative. Instead of becoming competative, their solution is to add rules, complexities, and regulations to try and avoid the need to compete.

    I am a US citizen and live outside of the US - last year I submitted a 78 page tax return to the IRS while having no US earned income. My tax return in country was 5 pages. I am relatvely small potatoes, so it is shocking that even a small fish like myself has to deal with this complete mess - if the US government was competative, they would not need to worry about high net worth individuals leaving for tax havens, so the complexity of the code drops considerably. The same thing applies to US based companies.
    Mar 25, 2013. 03:03 AM | 1 Like Like |Link to Comment
  • "Here's a novel way to drive up a company’s share price," writes the NYT's Jeff Sommer. "Pay billions of dollars in additional taxes." Forensic accountant Robert Olstein reckons that companies such as Apple (AAPL), Microsoft (MSFT) and Cisco (CSCO) should repatriate the tens of billions dollars they hold abroad, pay tax on it, and then use the rest of the cash to repurchase stock. That would boost their share prices by at least 20%. [View news story]
    Timothy -

    I also live in a country that is a big part of this story and happen to know more than a little how this actually works in the real world. I also understand that taxes need to be paid (but don't agree that healthcare is the government's resp), but corporations are not people and quadruple taxation is incredibly burdensome.

    I do not have an obsession with Obama - you're the one blindly parroting his rhetoric.
    Mar 25, 2013. 01:18 AM | Likes Like |Link to Comment
  • "Here's a novel way to drive up a company’s share price," writes the NYT's Jeff Sommer. "Pay billions of dollars in additional taxes." Forensic accountant Robert Olstein reckons that companies such as Apple (AAPL), Microsoft (MSFT) and Cisco (CSCO) should repatriate the tens of billions dollars they hold abroad, pay tax on it, and then use the rest of the cash to repurchase stock. That would boost their share prices by at least 20%. [View news story]
    Timothy -

    You don't have a clue. The problem is that the US global tax system forces US corporations to pay taxes on income earned in a society in which they do not operate - the US. Under the current system, if a company develops a product, manufactures, and sells it completely OUS, the US federal government expects taxes on this income. How is that "paying taxes in the society in which they operate?"

    Also, although it may sound smart to parrot the silly lines of the second coming of Jesus Christ, the lord and savior (Obama) - your statement completely ignores property taxes, sales taxes, state and local taxes, foreign taxes, payroll taxes, Dividend taxes, capital gains taxes, etc...

    MNEs are optimizing the use of incentive systems provided by hundreds of governments around the world. People like you, that clearly don't understand this are the reason why more and more jobs are leaving the US... Instead of putting a smart tax system in place that incentivizes investments, manufacturing, and setting up HQs in the US we have a president playing populist games pushing us in the wrong direction. He is successful because there are enough people like you out there buying the story...
    Mar 24, 2013. 04:59 PM | 3 Likes Like |Link to Comment
  • "Here's a novel way to drive up a company’s share price," writes the NYT's Jeff Sommer. "Pay billions of dollars in additional taxes." Forensic accountant Robert Olstein reckons that companies such as Apple (AAPL), Microsoft (MSFT) and Cisco (CSCO) should repatriate the tens of billions dollars they hold abroad, pay tax on it, and then use the rest of the cash to repurchase stock. That would boost their share prices by at least 20%. [View news story]
    TimothyF,

    Ignoring the fact that any corporate taxes are the most regressive taxes paid in the US and that there is actually Quadruple taxation in the US (Foreign taxes, domestic corp taxes - federal, state, etc..., distribution taxes - dividends/capital gains, and misc taxes - payroll, property, sales, etc...), MNE's are only doing what they are incentivized to do. To say: "it is wrong" has to be one of the most emotional, silly, and uneducated statements I have heard in awhile - there is nothing wrong about it at all.

    Also, saying "individuals pay their taxes, let MNEs do the same" is another head scratcher... What the hell are you talking about?
    Mar 24, 2013. 04:17 PM | 3 Likes Like |Link to Comment
  • Is Mighty Apple Really Falling? [View article]
    "the smartphone market is saturated"

    last i checked, smartphones only have 25% of the global cell phone market. this seems far from saturation. Also, phones are upgraded every 2-3 years, so even if it were saturated, there are plenty of phones to be sold.
    Mar 23, 2013. 02:43 AM | 6 Likes Like |Link to Comment
  • Another day, another low-cost iPhone (AAPL +1.3%) report. RBC's Amit Daryanani says his checks indicate a cheaper iPhone with a plastic case and a 4" non-retina display is on the way. He thinks it will arrive in the June/July timeframe, sell for less than $400, and (after modeling various scenarios in a spreadsheet) add $22B in sales and $5 in EPS to Apple's 2014 results. For those keeping score, RBC, Jefferies, KGI Securities, Sterne Agee, and Goldman have all predicted a cheaper iPhone will arrive, but the details they provide vary plenty. [View news story]
    says the clueless american......
    Mar 22, 2013. 01:04 PM | 1 Like Like |Link to Comment
  • Why I'm Sticking With 'The General' - General Mills [View article]
    Good stuff Ray - this is one of my favorite holdings right now given the safety, great dividend, great brands, and history of slow but steady growth.
    Mar 19, 2013. 03:31 PM | 1 Like Like |Link to Comment
  • It's Time To Dump Apple And Buy Amazon [View article]
    HAHAHA - you should be in comedy. This would only be a serious article if the first words were: "just kidding..."
    Mar 15, 2013. 01:55 PM | 14 Likes Like |Link to Comment
  • Apple: Too Cheap To Ignore? [View article]
    "Better to be prudent and solvent"

    I am starting to think you don't know what "solvent" actually means...
    Mar 9, 2013. 01:56 PM | Likes Like |Link to Comment
  • Google Investors Need To Ignore The Google Glass Effort [View article]
    I don't see this being a big hit for the following reasons:

    1. you can't consume the large majority of information on it - can't read, look at pictures, watch video, etc... You are basically left with turn by turn directions and other small items...
    2. can't create content other than pics and videos, and the camera will follow your face and not your eyes so who knows how easy it is to even get a good picture?

    The incremental functionality is limited to zero and you give up significant things in exchange, so the phone will never be replaced by this. If the phone will not be replaced, this thing is DOA because people want fewer, more broadly effective devices that work, not more niche devices.
    Mar 8, 2013. 02:21 AM | Likes Like |Link to Comment
COMMENTS STATS
178 Comments
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