April 23, 2013
– Comments (12) |
RELATED TICKERS: AAPL
Just to mess with a wall jr head..
I'm gonna predict apple has good earnings at 4:30....
Earnings were ok, what killed it apparently was Cook's CC. I like the divy increase and I still like the Iphone. I think people got disappointed when Cook didn't warm up to the idea of a larger screen. It really was Samsung's wider screen that was enticing me (eyes aren't as good as they used to be), but in a way I understand Cook's position. You want people to buy the phone AND the ipad.
But 60B buyback is very big. It is double of total YHOO mkt cap!!
It did not pull back after hours.Let us see whether it pulls the price up tomorrow. If not, it is pretty difficult for COOK ...
Well apparently the buyback could amount to a 20 pct decrease in shares outstanding. That really is considerable. I still think a stock split would be better.
Wow just heard on Bloomberg that AAPL's finanacial rating was reduced from Triple A. Reminds me of that bow-tied buffoon from S&P trying to justify a downgrade on the US depsite the fact that the world keeps buying our Tbills.
If future growth is dim, and buyback is announced, it reflects negative. Whenever the company buyback, the instutional investors/Hedge funds dump the shares on the company head and walk away with cash!
The key issue is growth. Buyback along with growth is perfectly right strategy for any company. This will become turnaround and company may take the advantage of low cost shares.
Is AAPL doing that? In few minutes we will come to know the results...
WOW A WALL apple actually has no credit rating from the all important SP rating system ? them are deemed like those people starting out who have no credit rating..
So it's gonna be interesting to see them borrow money, what are they gonna use as collateral or even as a sign that they are worthy ?
So in essence they really haven't been down graded as they had no ratings to begin with... sorry but if the truth hurts it hurts.
I have already moved my portfolio to taxfree bonds and few stocks.
AAPL is a good case study for me. I will not follow apple as it gave me good insight how market is very sensitive on the management decisions.
OMG, it is very wild and volative.
Thank you Awallejr and L0RDZ.
The buyback is the key. About time they use their earnings for something that will reward shareholders. This may offset margin decline which is really hurting the bottom line. Margins will pry fall to between 20 and 25%.
#3 a stock slit wouldn't help more than the buyback. Not even close. Big block trades drive the price not someone who wants to buy a set of shares that are less than 500 dollars. We are talking about a share buyback of 60 billion. Spliting the shares might have a short term effect but does absulutely nothing for shareholders. Spliting a stock just means there are more shares. If AAPL buys back 60 billion worth of stock your ownership increases without buying another share. Now if you are talking about a short term bounce fine the stock might go up. But give it a year....like I said and you said EARNINGS drive up a stock. Earnings go up per share if 20% of the stock is bought back considerably. If there are just more shares that does nothing. That unlocks no value whats so ever.
Q: How many Apple employees does it take to change a light bulb?A: 47 -- One to change the bulb and a team of 46 lawyers to copyright iChange; the alternate light bulb protocol and then sue anyone else who changes a light bulb, ever.
Well Jiltin if you still want to jump back into the world of stocks then look at a company's Beta score. A Score of 1 is market average, over 1 is more volatile than market average and under 1 is less volatile.
As for me you are talking to a guy who survived the '08-'09 crash so I am used to volatility.
My friends suggested me to invest since 1999. I was very reluctant until I get stability. Now, I have got stability and trying to learn systematically. Thanks for the tip on Beta score.
I need to be seasoned for individual stocks. Hope, I will overcome soon.