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PostScience

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  • Apple (AAPL +0.7%) plans to start "production of a new iPhone similar in size and shape" to the iPhone 5 in calendar Q2, setting up a "possible summer launch," the WSJ reports. The paper adds Apple is working with partners on a cheaper iPhone with a 4" display and "different casing" than the iPhone 5, and that a 2H launch for the device is possible. Both scoops mesh with iPhone rumors (I, II, III) that have been floating around in recent months. Samsung's Galaxy S IV, replete with a 5" display, is expected to go on sale in late April and May (depending on the market). [View news story]
    Some of us put the phones in our pockets and not our European carry-alls.
    Apr 2 08:32 PM | Likes Like |Link to Comment
  • How Much Should You Pay For Apple? [View article]
    Uh, in three years Apple will have $250 per share IN CASH.
    Jan 31 05:42 PM | 8 Likes Like |Link to Comment
  • Apple (AAPL) is taking it on the chin again this morning as chatter about weak iPhone 5 demand in China, and UBS taking its price target on the stock down to $700 from $780 has the shares off 2.2% premarket. [View news story]
    Who cares? I don't want Apple to manage expectations or massage earnings. Let the traders suffer. Apple doesn't owe them anything, and I plan on holding for years at least.
    Dec 14 12:29 PM | Likes Like |Link to Comment
  • Cisco: Everything Is Priced In [View article]
    Exactly. In the next 5-7 years, CSCO will have cash flows equal to its entire enterprise value.

    If we give CSCO a reasonable valuation of 15x cash flow + net cash, it should trade at around $35.
    Dec 14 12:57 AM | Likes Like |Link to Comment
  • Cisco: Everything Is Priced In [View article]
    If you use a 14% discount rate, then there is a not a single stock that is not "overpriced" according to your analysis.
    Dec 14 12:52 AM | 1 Like Like |Link to Comment
  • Apple Trading At 2.56x 2016 Cash Flow [View article]
    In four years that $335 billion is only going to be worth $320 billion. Run for the hills!
    Dec 11 02:44 AM | 3 Likes Like |Link to Comment
  • Apple Trading At 2.56x 2016 Cash Flow [View article]
    Any prediction for the future is a guess or an assumption. In your language, how does one "professionally" make projections for the future? This would be a very pointless site indeed if no one tried to anticipate future earnings.
    Dec 11 02:37 AM | 3 Likes Like |Link to Comment
  • Apple Trading At 2.56x 2016 Cash Flow [View article]
    "Growth through 2016 was baked into the $700 share price"

    Are you kidding me? A company that trades at less than 10x cash flow (net cash) doesn't have any growth baked in. In fact, the only way that $700 a share make sense is if we assume declining profits.
    Dec 11 02:32 AM | 1 Like Like |Link to Comment
  • Dell (DELL): FQ3 EPS of $0.39 misses by $0.01. Revenue of $13.72B (-11% Y/Y) misses by $180M. Expects Q/Q revenue growth of 2%-5% in FQ4, below a consensus for a 5.6% increase. Maintains guidance for at least $1.70 in FY13 (ends in January) EPS. Shares +1.5% AH. (PR[View news story]
    Spectacular collapse is priced in. Slow, controlled collapse is good news.
    Nov 16 12:59 AM | Likes Like |Link to Comment
  • Cisco: Grossly Undervalued At Current Prices [View article]
    Smart companies should stay away from China anyway.
    Nov 5 06:32 PM | Likes Like |Link to Comment
  • What's Going On In CRM? [View article]
    CRM dilutes shares, CRM loses money.

    Ironically, their per-share results end up looking better, since the losses are spread among more shares.
    Oct 21 08:09 PM | 2 Likes Like |Link to Comment
  • Analyzing Companies Is A Complex Affair: Don't Use EBITDA [View article]
    Brilliant article!
    Oct 19 07:24 PM | 1 Like Like |Link to Comment
  • Hey Bill Gross, Why So Serious? [View article]
    Fiat currencies may be finite, but they are still better than the alternative. Remember, you can't eat gold. It doesn't give you shelter. In fact, gold doesn't provide any of the essentials of life. When it comes down to it, gold is just as worthless as a pile of paper money.

    However, unlike gold, fiat currencies give the government the flexibility to control the money supply. No longer will the economy go into steep depressions every 5 years due to lack of specie. Anyone proposing a return to the gold standard should learn it's grim history.
    Oct 10 01:59 AM | 6 Likes Like |Link to Comment
  • Hey Bill Gross, Why So Serious? [View article]
    Bill Gross recently said that, in the long-term, stock market performance cannot be higher than the increase in GDP. Think about that for a sec. Can you spot the mistake? If so, congratulations. You are officially smarter than Bill Gross.

    It's not about politics. It's about freshman level business. Bill Gross is objectively ignorant.
    Oct 10 01:52 AM | 3 Likes Like |Link to Comment
  • General Motors (GM -0.4%) disputes a published estimate from Reuters claiming that the automaker loses $49K per Chevrolet Volt. At issue is if development costs of the program should be divided across the lifetime volume of Volts or the current number sold. [View news story]
    GM is correct. R&D costs needs to be spread across the lifetime of the product. Otherwise, no R&D could ever be justified. It costs billions of dollars to develop a car. Does that mean that the first car off the line lost 1 billion dollars? Hardly.
    Sep 10 03:16 PM | Likes Like |Link to Comment
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