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Pts117

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  • Why Apple Is Becoming Irrelevant [View article]
    How can you come to the conclusion that since apple has not released the "phablet" yet, they are becoming irrelevant? This is either a really poor attempt at sarcasm that I am not picking up on or a really poor attempt at drawing a conclusion.

    Yup, the delayed launch of a phablet is going to sink the ship because 12% of the market wants one and the other 88% are so sad for those 12% that they will no longer buy the best phones, tablets, and ecosystem in the world in protest... Seems like a reasonable conclusion!
    Apr 30 06:06 AM | 32 Likes Like |Link to Comment
  • Can The Stock Market Continue To Go Up When The Middle Class Is Suffering? [View article]
    Krugman's boner is so stiff for obama that he was willing to put his name behind the trillion dollar coin idea. This guy has been soap boxing every fed policy for 3-4 years, his ideas are the economic cancer that is eating away at the American way of life and crushing the incentive for saving and investing.

    Krugman and "facts," please....
    Feb 9 02:04 PM | 16 Likes 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 01:55 PM | 14 Likes Like |Link to Comment
  • Pepsi Or Coke: Which Would You Rather Own? [View article]
    This is not really a fair comparison because, while it everyone likes to compare coke to pepsi, the companies are very different businesses. Coke is 100% beverages (coke, diet coke, powerade, sprite, desani, minute maid, coke zero, etc...) and pepsi is more diversified with about 60% of their business in food processing (quaker, frito lay) and the other 40% in the beverage space (Tropicana, gatorade, pepsi and soft drinks, etc...).

    Coke's strengths are its strong brands, global supply chain, and global diversification. The big weakness is too much reliance on soft drinks, which I think have long term headwinds as people become more educated and tastes shift to more healthy options. Instead of working with the trend and providing more healthy options, they are putting out commercials to try and change the trend (telling people that unhealthy beverages are not the problem). This is a battle they will not win.

    Pepsi's strengths are strong brands, market diversification (food and beverage), global growth potential, etc... Weakness is less global diversification, but I see this as an opportunity. Pepsi is also working with the healthy options trend - they are pouring resources into developing healthy options rather than pretending that sugary soda is not unhealthy.

    I am long PEP because of their market diversification, growing dividend, global growth opportunity, and increasing focus on healthy food/beverage options.
    Feb 3 03:49 AM | 12 Likes Like |Link to Comment
  • Apple: Is It Finally Time To Buy? [View article]
    That's all i keep hearing from Apple haters... Wait till... Wait till...

    Wait till margins contract...
    Wait till Samsung renders their products obsolete...
    Wait till the BBRY Z10 is out...
    Wait till Droid takes all of heir market share...
    Wait till the impact of Steve Jobs' death hits the innovative machine...
    Wait till Microsoft puts out the Surface tablet...
    Wait till the iPhone, iPad, and iOS are stale...

    Wait till... Wait till... Still waiting...
    Apr 1 08:57 AM | 11 Likes Like |Link to Comment
  • How Apple Gave Wall Street The Middle Finger [View article]
    I understand both sides of the argument, and I am not saying that you are wrong, only that markets are a tough nut to crack. Personally (I am long AAPL with 12% of my portfolio as of the 445 USD per share mark), I would prefer Tim Cook focused on adding 40-50B in free cash flow, protecting his margins, coming out with new products, and executing flawlessly than worrying about (in my view) a fairly arbitrary 40% beating the share price has taken. If he can take care of the things I mentioned above, the share price will take care of itself.
    Jan 29 11:21 AM | 11 Likes Like |Link to Comment
  • Apple: Is It Finally Time To Buy? [View article]
    Look for Mac, iTunes, and Apps to have mind boggling numbers while iPhone and iPad growth is in the low double digits YOY.

    Everybody says that their margins are too high, but they bundle everything (hardware, software, support, apps) into one offering which nobody else does... I bet if you do the math on the total profit earned on a samsung phone by samsung, google, msft, etc... the numbers are within range of the iPhone - difference is that AAPL keeps it all.
    Apr 1 07:32 AM | 9 Likes Like |Link to Comment
  • Apple At Year End: $600 [View article]
    Rappenco -

    there are so many potential catalysts (China Mobile, enterprise clients, fixing supply constraints, product refreshes, line extensions, new products, increasing service revenues/offerings, share buy backs, dividend increase, stock split, etc...). To assume that none of these will happen seems a bit of a stretch, however, the shares are priced for ~25-35% EPS decline immediately and no growth after that - meaning none of these events appear to be priced in.

    Isn't the right time to buy when the probability of a large catalyst is high, but the catalyst is not priced into the shares? Isn't it true that once the catalyst is known, it will be too late to take advantage of the new information?
    Mar 7 07:22 AM | 9 Likes Like |Link to Comment
  • Apple Does Not Have $137 Billion In Cash [View article]
    This is not a "personal attack," it is only intended to point out a number of errors and silly statements in your article...

    Errors in this article:
    1. "AAPL has $137 billion in assets." Answer: $196B
    2. "It is just as it states -- cash and cash equivalents... this is accounts payable and account receivable. This is the pot of money that equates to cash flow." Answer: cash and cash equivalents are not accounts payable/receivable and cash and cash equivalents do not equate to cash flow - they represent cash that has already... flowed.
    3. "AAPL reported $23.666 billion in Short-Term Marketable Securities... these are investment tools that allow for a higher rate of return than a savings account and have a 3 to 5 year maturity horizon." Answer: short term marketable securities have a maturity less than one year or the company intends to sell in less than one year.
    4. "The time horizon on these instruments is 5 to 10 years, at least." Answer: these instruments mature and are expected to be held beyond one year.

    Other silly statements
    1. "Long-Tern Marketable Securities... Think of this category as your 401(k) or your IRA. This category is essentially your retirement account, meant to be there when you need it the most. These accounts do not get touched unless there is a dire need to use them, and even then, there are alternatives." Reality: corporations are not buying long term marketable securities to provide income in retirement. They are buying them to generate a marginally better rate of return than short term marketable securities until the cash is needed to be deployed for whatever reason they see fit.
    2. "Stating that AAPL has $137 billion in cash is, at the least, misleading. As AAPL reported on its 10Q, it has $137 billion in assets, not cash. AAPL has $16.154 billion in cash. This is most likely the reason Mr. Einhorn dropped his suit against AAPL, among others." Reality: Einhorn dropped his suit because there was nothing to sue against once Apple dropped the proposal.

    Really poor job laying the case out Jarrod... really poor.
    Mar 5 04:03 AM | 9 Likes Like |Link to Comment
  • Apple: Keep The Faith [View article]
    this is a ridiculous comment...
    Feb 19 08:43 AM | 9 Likes Like |Link to Comment
  • How Apple Gave Wall Street The Middle Finger [View article]
    This is a pretty astute take away from the Q1 call - great insight & I think you are correct. They would have to be completely incompetent to hold onto 137B in cash with the plan to distribute this back to shareholders in relatively small 2.5-5B increments each quarter while generating 40B in free cash flow per year.
    Jan 29 10:22 AM | 9 Likes Like |Link to Comment
  • Why Apple Is Becoming Irrelevant [View article]
    First, Phablets making up 70% of the market will never materialize, but I would love to know the assumptions behind that statistic. To assume that 70% of people (including women with small hands and guys who do not carry a purse) want to use a massive phone is quite a stretch.

    Secondly, even if we assume this actually happens - Apple will release a phablet sooner rather than later. If you listen to the Q2 earnings call it is fairly obvious based on TC's choice of words.

    Third, even if we assume that this actually happens AND Apple refuses to make one (while watching 70% of their phone business fall apart), they would still compete in the laptop market, 30% of the smart phone market, the tablet market, services/software market, TV market, and other new markets which we do not know about yet. Saying that "Apple is becoming irrelevant" because they did not launch a phablet is crazy.
    Apr 30 08:02 AM | 8 Likes Like |Link to Comment
  • 3 Moves To Make On The Verge Of Market Panic [View article]
    Shorting the market is like going to the casino - the expected return over time is negative because markets go up, not down over the long run. I would prefer to be on the casino side of the wager by being long the market in a very diversified way... you may lose one or two hands but over time you will always have a positive return.

    That said, I am not comfortable with where the markets are these days but am not going to pretend like I know more than the billions of other investors out there. So, I stick to the plan... invest similar increments based on a portfolio strategy over the long run... buy when the markets are up, buy when they are down, and close my eyes for 50+ years...
    Apr 17 05:42 AM | 8 Likes Like |Link to Comment
  • Can The Stock Market Continue To Go Up When The Middle Class Is Suffering? [View article]
    Great point CR, you have summed up all of your president's bad ideas in 9 words.
    Feb 9 06:08 PM | 8 Likes Like |Link to Comment
  • Can The Stock Market Continue To Go Up When The Middle Class Is Suffering? [View article]
    Krugman is the equivalent of any fox news anchor - interesting points, but a political talking head. I don't listen to anything that guy says.
    Feb 9 10:15 AM | 8 Likes Like |Link to Comment
COMMENTS STATS
178 Comments
321 Likes