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  • Apple (AAPL): FQ2 EPS of $10.09 beats by $0.02. Revenue of $43.6B (+11% Y/Y) beats by $1.1B. 37.4M iPhones, 19.5M iPads, just under 4M Macs. Expects FQ3 revenue of $33.5B-$35.5B, below $39.3B consensus. Buyback increased by $50B. Shares halted. CC at 5PM ET (webcast). (PR[View news story]
    There's a reason Warren Buffet recently advised Apple to issue a buyback (and has in the past as well, though that was ignored.) Increasing the concentration of a shareholders value and the consequent increased dividend is no joke. If anything, Apple's cash hoard was being massively discounted due to the believe that allocation was inefficient, and tech stocks are not valued at book.
    Apr 23 09:06 PM | 1 Like Like |Link to Comment
  • Bitcoin: Buyer Beware, This Is A Classic Bubble And Possible Fraud [View article]
    Thanks Robert, the article was well written and I agree with your opinion that bitcoins should be viewed as a speculative investment rather than a store of value, and the observed price volatility serves as confirmation of this. There is; however, an inherent property of bitcoins that will continue to drive demand, though the extent of this and the valuation of the currency in the coming months and years remains to be seen. Bitcoins are the only secure and online medium of exchange for transactions that are somewhat less than legal, and the knowledge base around them is rapidly growing to the point wherein common street drug and arms dealers have taken notice. The underground marketplace represents a substantial percentage of global GDP, and I believe that as transaction volume has increased major players have started to show interest. This has driven the recent surge in bitcoin valuation as demand for the currency has skyrocketed. Whether the currency can sustain its valuation on its own merits is the main question that we should be asking, and this depends largely on the supply and demand that the underground marketplace provides. If long-distance illegal e-commerce fully embraces bitcoins as the choice medium of exchange, the current valuation may prove correct or even undervalued. If not, the experiment could easily prove to be a massive inflationary bubble, as you suggested in your article. I wouldn't be overly concerned with earnings from the creators of bitcoin, as I think that the increased supply is insignificant when compared to the pressure that is put on the currency from changes in demand. Though the increase in supply is noteworthy (approximately 1.3 million bitcoins per year at 25 per 10 mins), this intrinsic devaluation pales in comparison to the price increase that demand has caused. To me, this means that an investor's valuation of the currency should be based primarily on what he or she sees the future demand as, and this is based mostly on whether the underground marketplace fully adopts bitcoins. There is no real gain to be had for bitcoins in markets that are not banned, as currency can easily be switched to another as a store of value. This means that the only true driver of bitcoins valuation (though pressure from outside investors may enhance or mitigate this effect) is the reliance of the underground marketplace on them. Personally, I have a difficult time assigning either a buy or sell recommendation based on the measures that are available, and would advise investors to stay away from bitcoins unless they had a good feel for the black market.
    Apr 7 11:28 PM | Likes Like |Link to Comment
  • 2 Of Buffett's Biggest Bets In 2012 Look Good Here [View article]
    I agree, Canadian banks are due for a shock, and I say this as a Canadian. While Canada's homeowners have not been exposed to the same magnitude of risk as America's prior to '08 due to the lack of a sizable sub-prime market a correction remains inevitable, particularly in Vancouver and Toronto. The valuation of median home price to median income in Vancouver has reached the same levels that people retrospectively called insane throughout America after the crisis, yet prior to '08 these homes were being hyped as infallible investments. The same thing is happening in Canada. Residential sales by volume have already dropped almost 20 percent y.o.y in Vancouver, and housing prices are down. Homeowners have almost all of their equity tied up in a home that is overvalued and very sensitive to changes in the interest rate benchmark, and as the housing market slows or potentially crashes Canadian banks will feel the repercussions.
    Mar 10 06:42 PM | 1 Like Like |Link to Comment