Since84
Moderator
To infinity and beyond!
Posts: 3,933
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Post by Since84 on May 14, 2018 2:14:28 GMT -8
Good morning everyone. The DAX and CAC are RED while the others are GREEN. AAPL is GREEN as well, trading at $189.15 +0.56 (0.30%). Shall we resume the run? In the news: Tim Cook tells Duke University graduates that Apple takes 'a different path' on privacy, jabbing at Facebook stories at AppleInsider, CNBC, CNN/Money and others. Motley Fool has Are Shrinking Margins Going to Be a Problem for Apple?Have a great day. Let's make money.
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bud777
fire starter
Posts: 1,352
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Post by bud777 on May 14, 2018 5:54:06 GMT -8
Motley Fool has Are Shrinking Margins Going to Be a Problem for Apple? Betteridge's law of headlines is an adage that states: "Any headline that ends in a question mark can be answered by the word no" In this case, the author forgets to answer the question. While the headline talks about shrinking margins, the article talks about profit margin percentages. Confusing? Here. let's clear it up with an example. The author says, " If I sell the product for $500 and the cost to manufacture is $350, the profit margin percentage is 30%" I am assuming that he got this by taking $150 (the profit) and dividing it by $500 (the selling price) so $150/$500 = 30%. He then compares that to a selling price of $650 and cost to manufacture of $500 (hence a profit of $150). So now a profit of $150 divided by a selling price of $650 gives a profit margin percentage of 150/650 = (wait for it........) 30% He obviously meant 23%, but what I love about this is that an attempt to spin something negative out of something positive (profit actually increased per unit) resulted in the author confusing himself. What's that saying? Hoist on his own petard? It is like bemoaning the dropping dividend yield every time the stock goes up. Even if his arithmetic is corrected, his point is irrelevant. I only care about the actual margin and thus the profit. Margin percentage doesn't matter as long as price increases to match the costs. I have to call this article a lame attempt at FUD because the headline talks about shrinking margins, not margin percentages. It is dangerous because, like the law of large numbers or a 14 week quarter, most brokers will not understand it.
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Post by carbonate24 on May 14, 2018 7:13:50 GMT -8
Motley Fool has Are Shrinking Margins Going to Be a Problem for Apple? Betteridge's law of headlines is an adage that states: "Any headline that ends in a question mark can be answered by the word no" In this case, the author forgets to answer the question. While the headline talks about shrinking margins, the article talks about profit margin percentages. Confusing? Here. let's clear it up with an example. The author says, " If I sell the product for $500 and the cost to manufacture is $350, the profit margin percentage is 30%" I am assuming that he got this by taking $150 (the profit) and dividing it by $500 (the selling price) so $150/$500 = 30%. He then compares that to a selling price of $650 and cost to manufacture of $500 (hence a profit of $150). So now a profit of $150 divided by a selling price of $650 gives a profit margin percentage of 150/650 = (wait for it........) 30% He obviously meant 23%, but what I love about this is that an attempt to spin something negative out of something positive (profit actually increased per unit) resulted in the author confusing himself. What's that saying? Hoist on his own petard? It is like bemoaning the dropping dividend yield every time the stock goes up. Even if his arithmetic is corrected, his point is irrelevant. I only care about the actual margin and thus the profit. Margin percentage doesn't matter as long as price increases to match the costs. I have to call this article a lame attempt at FUD because the headline talks about shrinking margins, not margin percentages. It is dangerous because, like the law of large numbers or a 14 week quarter, most brokers will not understand it. That motley fool article left me with two thoughts... 1. I wish I had the last few minutes of my life back. 2. I should consider dropping my engineering career and focus on writing finance articles (or whatever passes for one these days). Either that, or forecasting the weather. Either way, I wouldn't really have to worry about losing my job if I'm wrong or inaccurate all the time. Has anyone ever tried contacting the motley fool about inaccuracies in their stories? Unless I'm missing it, I noticed the author does not list his email address. Once, I wrote multiple times to the motley fool's main contact page about someone's article about AAPL, which had facts that were wrong in it.....not someone's poor opinion, but literally points that were not true even as Motley Fool stated them as facts. Of course, I received no response, and the article had not been corrected. Nice to see AAPL back in the green today after the long winning streak was snapped!
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chinacat
Moderator
AAPL Long since 2006
Posts: 4,429
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Post by chinacat on May 14, 2018 7:22:45 GMT -8
An addendum from today's PED column:
"My take: Zhang, who covers Apple’s Asian supply chain, is Rosenblatt’s answer to KGI’s Ming-Chi Kuo. Kuo, you may recall, predicted weak iPhone X sales last quarter and no longer covers Apple for KGI or anyone else."
I had not heard this good news, but all I can say is "Hallelujah!"
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