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Jack Staub

Jack Staub
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  • Michael Blair's Incredible Journey - Apple's Blowout Launch [View article]
    Blair helped to push Apple's shares down to an irrational low ... just as the Company executed on the largest share repurchase in history.

    What a gift he (along with the rest of the Apple doom & groom analysts) gave to all of us longs!

    Thank you Mr. Blair!!
    Oct 1, 2014. 03:23 PM | 6 Likes Like |Link to Comment
  • Apple: Why The Cash Issue Is So Important [View article]
    There was a 1% increase in treasuries between the first and second round, so I don't see how you can claim the higher rate paid for the second round was due to Apple's existing debt.

    "Both cases were marginally over treasury bonds"
    http://bit.ly/1jbqMlE
    Jul 8, 2014. 10:30 AM | 2 Likes Like |Link to Comment
  • Apple: Why The Cash Issue Is So Important [View article]
    Apple's debt raised in 2014 carries a higher interest rate than 2013 due to changes in the market over that time, not because Apple's financial condition has weakened. Apple's timing in 2013 was remarkably good.

    Also note that if and when interest rates do rise, Apple will earn higher interest on its cash & investments, and that will exceed the higher interest paid on debt -- as its pile of cash is significantly larger than its pile of debt.
    Jul 8, 2014. 04:18 AM | 12 Likes Like |Link to Comment
  • The Genius Of The Apple iPhone 6 [View article]
    With a sapphire screen, the iPhone 6 could integrate the home button & fingerprint sensor under the sapphire crystal, streamlining the phone's look and feel considerably.
    This would be so anti-Samsung, don't you think?

    If they cover the back of the phone with a sapphire solar cell, that could be used for recharging the battery, substantially increasing the time between plug-in charging, and further streamlining its look and feel.

    Each feature would be significant in its own right, and fully capable of sending the iPhone masses into a buying frenzy. So it's probably best to bring them out over multiple product cycles.
    Jun 26, 2014. 03:47 PM | 1 Like Like |Link to Comment
  • A Tale Of Unbridled Optimism [View article]
    Apple has a PE of 15, where exactly is the excessive optimism in that?
    Jun 25, 2014. 01:19 AM | 1 Like Like |Link to Comment
  • Overlooked Upside Potential In Apple's Acquisition Of Beats Electronics [View article]
    Beats already sells headphones and portable speakers, why not go into automobile sound systems? The brand is well liked across a wide demographic. They could give Bose and Harmon Kardon a run for their money.

    And what about home audio systems, e.g. TV surround sound built into a next-gen receiver like an Apple TV + cable receiver + wireless home router combo with Beats sound.

    The Beats acquisition can easily lead to many other segments. Apple has been working closely with the automobile manufactures and cable operators for some time, so this may be MUCH closer than we know. Perhaps the Beats brand would allow Apple to pursue a broader demographic, and counter the “Apple’s only for rich people” criticism.
    Jun 11, 2014. 04:57 PM | 3 Likes Like |Link to Comment
  • Amazon's New Smartphone Spells Trouble For Apple [View article]
    Trainer's paid by shorts to do 'research'.
    Jun 9, 2014. 12:25 PM | 5 Likes Like |Link to Comment
  • Why Tim Cook Wants Mom And Pop To Buy Apple [View article]
    Small investors buy indexes (not shares) so being part of DJIA should give them access to Apple (via their 401K purchases of the index).

    The lower share price should make it easier for midsized personal investors who want to purchase in 100 share increments, where $60K per trade may be a hurdle.
    May 13, 2014. 12:29 PM | 1 Like Like |Link to Comment
  • Will Apple Ditch Google For Yahoo Search? Never Say Never [View article]
    Apple should buy Yahoo and compete directly against Google.

    Advertisers will pay more for iOS clicks and that will encourage them to start using Yahoo's paid search advertisements.
    Apr 17, 2014. 10:42 AM | 4 Likes Like |Link to Comment
  • Apple Investors May Need A Reality Check [View article]
    Compairing Apple's foreign reserves to an individual's 401K makes no sense. Apple doesn't need those funds for retirement, it needs to be much more aggressive in making use of that capital today!
    Apr 2, 2014. 01:57 PM | Likes Like |Link to Comment
  • Apple: $635 Price Target Feels Right [View article]
    "Insufficient."
    So you're unhappy because you bought Apple at its 2012 peak -- when all of the analyst were over-hyping the company -- and now you feel like a chump and want to tell the company how to invest its cash.
    Are you blaming Tim Cook for your bad timing??

    There's a limit to how any company can expand R&D without wasting a ton of capital.
    Mar 12, 2014. 05:29 PM | 3 Likes Like |Link to Comment
  • Apple: $635 Price Target Feels Right [View article]
    Apple's been increasing R&D 35% annually since 2009, which is a tremendous increase for any engineering organization. In 2009 Apple's R&D was $1.3B and that grew to $4.5B in 2013. So I'd guess they'll spend close to $6B in 2014.

    That's a lot of money invested in future product development. I'm certain that Apple could tell us on a weekly basis what products are in the pipe, and that drum beat of press releases would push the stock price higher in the short run. But since Apple is the leader, competitors would only use this information to their advantage, and in the long run that would be devastating to Apple and its share price. So investing a lot in R&D while keeping quiet is exactly the right thing to do from the perspective of a long term investor.

    Another reason I'm long Apple is because of their share repurchase. The more shares they buy, the more of the company I own, and over the next 10 years EPS should increase significantly -- even if overall earnings don't.

    Management appears to be doing all the right things, at least for investors with a long term view. But 'long term' means years, not months.
    Mar 12, 2014. 01:13 PM | 4 Likes Like |Link to Comment
  • Is Apple The Next Microsoft? [View article]
    ... and (c) buy back enough shares to reduce the number of common shares each year by 5%, increasing EPS by 5.26% annually; (d) increase its dividend by 5.26% each year with $0 impact to cash flow due to fewer shares outstanding; and (e) continue to add cash to its balance sheet. That's a 7.5% compounded return to shareholders on the EPS gains & dividends alone!

    Assuming NO GROWTH in overall earnings, after 10 years EPS would be increased 67%, as would the dividend. The stock should trade in the $900 to $1000 range even with its current pathetically low PE. All this simply because there are fewer shares.

    Clearly Apple doesn't need to grow overall earnings to generate a very healthy EPS growth and continue to pay & grow its dividend.

    However, it is certainly possible that they do introduce new products and that their overall earnings increase. If so, that would result in even higher EPS growth, dividend growth, and/or retained cash. I also think their PE would increase as the market becomes more comfortable with Tim Cook and future prospects of the company.
    Feb 21, 2014. 02:10 PM | 1 Like Like |Link to Comment
  • Apple's Solar Powered iPhone 6 And iPod Touch Under A Sapphire Hood [View article]
    Great article Matt! This is the best article I've read on SA.
    Thank you,
    --Jack
    Jan 26, 2014. 01:08 PM | 3 Likes Like |Link to Comment
  • Apple's Declining Advantage Is Undeniable [View article]
    Even ignoring dividends, I just don't see a problem with a declining ROIC, even if part of the decline is due to Apple substantially increasing their Invested Capital in 2012. Perhaps that was for building new data centers and preparing for the production of new products that we don't know about yet.

    That's exactly the kind of investment that Apple needs to make to increase future profits and widen its competitive moat!
    Jan 24, 2014. 04:23 PM | 2 Likes Like |Link to Comment
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