Since84
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To infinity and beyond!
Posts: 3,933
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Post by Since84 on Apr 30, 2015 2:18:55 GMT -8
Good morning everyone. AAPL is trading RED this morning. Well, let's be honest BLOOD RED. Current premarket trading at 127.30 -1.34 (1.04%) as of 5:35 AM. Apparently Wall Street has not gotten the memo that Apple will be buying today. Hopefully that means great premarket bargains... Major US Indices are RED as well. In the news: FUD still bouncing around the echo chamber. Bloomberg on watch defects. Reuters discovers Tattoo ink. And ZDnet has discovered a 'material' tax. Nice to know we tax whole cloth. Anything substantive? ...still looking... Have a great day. Let's make money.
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Post by CdnPhoto on Apr 30, 2015 3:17:34 GMT -8
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Post by qualitywte on Apr 30, 2015 3:18:01 GMT -8
BTFD!
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Since84
Moderator
To infinity and beyond!
Posts: 3,933
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Post by Since84 on Apr 30, 2015 3:34:25 GMT -8
aka catching the falling knife.
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Post by hamourabi on Apr 30, 2015 4:46:24 GMT -8
More BS FUD but I did not know Oppenheimer was on GS board
Apple Analyst: 'Borrow & Squander Is Not A Strategy'
In a report published Thursday, analyst Trip Chowdhry of Global Equity Research mentioned that Apple Inc. AAPL 's new CFO, Luca Maestri, appears to be following a "Borrow and Squander" strategy, taking the company's debt from $0 to $35 billion.
Apple is now using this borrowed $35 billion to undertake buybacks and pay dividends, which has not had any effect on the stock valuation. Maestri replaced Peter Oppenheimer, whom Apple "unceremoniously replaced," the analyst said. Oppenheimer is now on the Board of Directors at Goldman Sachs Group, Inc. GS . Goldman Sachs manages Apple's debt offerings.
"Under CFO Fred Anderson, Apple's EV/Operating Income multiples were in high 20s and Apple accumulated a vast Cash position," the analyst said, while adding that the current CFO "has turned the Balance Sheet upside down. He has no Cash in the US and is borrowing the Cash and squandering it to appease the short-term investors compromising the interests of long-term investors and the future viability of Apple."
Shares of Apple closed Wednesday at $128.64, down 1.47 percent.
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Post by phoebear611 on Apr 30, 2015 4:48:23 GMT -8
Hamourabi this was posted and discussed yesterday. Was there something in particular of this that you were trying to highlight to the group?
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mark
fire starter
Posts: 1,552
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Post by mark on Apr 30, 2015 4:49:42 GMT -8
Well ... I'd rather Apple be buying back AAPL shares at 127 than at 135. Heck, same for me, I'd rather buy (stock or call options) at 127 than at 135.
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Post by hamourabi on Apr 30, 2015 4:51:39 GMT -8
Hamourabi this was posted and discussed yesterday. Was there something in particular of this that you were trying to highlight to the group? Sorry there was so much on AFB yesterday. I did not know Oppenheimer was on GS board
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Post by phoebear611 on Apr 30, 2015 5:04:03 GMT -8
That's cool I just hate all that negativity- no worries. On a better note this just came out: Apple and IBM announce a new initiative to deliver health care apps to Japanese seniors
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Post by phoebear611 on Apr 30, 2015 5:05:33 GMT -8
X
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Since84
Moderator
To infinity and beyond!
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Post by Since84 on Apr 30, 2015 5:38:01 GMT -8
On the bright side, we don't have to worry about a gap.
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Post by macwire on Apr 30, 2015 5:58:18 GMT -8
Another day another 2 bucks
Can't help but just laugh at this point. LOL
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Post by tuffett on Apr 30, 2015 6:30:55 GMT -8
Make that 3 bucks, just for kicks
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Post by joel90069 on Apr 30, 2015 6:31:26 GMT -8
I guess we're heading to take out the 119,000 call contracts at 125. Who'd have thought....
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Deleted
Deleted Member
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Post by Deleted on Apr 30, 2015 6:36:20 GMT -8
The pressure of puts outweigh calls and suggests AAPL might close up from here. However, the overall market, combined with all the FUD orifices out there, who knows. God, I'm glad I don't work in journalism and on WS -- how embarrassing.
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Ted
fire starter
Posts: 882
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Post by Ted on Apr 30, 2015 6:42:54 GMT -8
Another day another 2 bucks Can't help but just laugh at this point. LOL Yeh, 125.xx is definitely NOT where I thought we'd be today after such stellar numbers and the momentum shown going into earnings. BUT this is nothing new for AAPL or us. My options for this year I legged into almost-no-cost spreads a while ago with the closest expiration being Jan '16 and the highest strike to clear 135. Let's not allow the weekly bumpiness to bum us out too much - even in the face of such unjust treatment - esp. given the tallest call wall ever(?)... For Tim & c. to do so well with FX winds against them is pretty amazing. Let others be scared off by the usual FUD tactics. Uncle Carl and I will be having lunch on the veranda.
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Post by mace on Apr 30, 2015 6:49:44 GMT -8
In this type of market, many traders would short index, bringing AAPL along, then more decline due to margin calls. The deep correction that pundits have been predicting for broad market may finally be here.
Below $124.46 would confirm ahem... Bad news
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Post by dreamRaj on Apr 30, 2015 6:52:32 GMT -8
What an anticlimax!
Wonder where we'd be today if ER were in line with consensus instead of a blowout.
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Post by nagrani on Apr 30, 2015 7:04:16 GMT -8
Getting ready to jump in the pool. Water is getting warm
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Post by nathanstevens on Apr 30, 2015 7:17:15 GMT -8
Getting ready to jump in the pool. Water is getting warm Careful. The warmth may just be all the piss.
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Post by tuffett on Apr 30, 2015 7:27:25 GMT -8
Still down 3x the Nasdaq. Absurd, but I'm hardly surprised anymore.
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Post by hledgard on Apr 30, 2015 7:59:19 GMT -8
As I have mentioned before, and I think bears reviewing, I think it is all about the Watch. The conference call did nothing to indicate real success. One still has to wonder if this isn't a solution in search of a problem.
Moreover, Apple Pay, HBO, the new MacBook are not yet declared winners. So people think AAPL may have peaked.
And still moreover, the low increase in the dividend was not reassuring.
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mark
fire starter
Posts: 1,552
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Post by mark on Apr 30, 2015 8:12:25 GMT -8
As I have mentioned before, and I think bears reviewing, I think it is all about the Watch. The conference call did nothing to indicate real success. One still has to wonder if this isn't a solution in search of a problem. The watch is merely an accessory to the iPhone. That's why I laughed so hard at the idiot in media who implied that good watch sales might hurt iPhone sales when discussing the company earlier this week. As far as "real success", there's no way to know that after only a few days of sales, it will take at least a year and probably 18 months to determine if the watch is a "real success". And not everything is a solution to a problem, especially in the accessory market. Low increase?!?! It was increased by more than 10%!
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Post by tuffett on Apr 30, 2015 8:28:32 GMT -8
Apple putting more money towards buy backs rather than dividends is actually very bullish. It means they consider their stock undervalued and see the current price as a discount. Once they forecast single digit growth is when the switch to large dividends should be made.
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Since84
Moderator
To infinity and beyond!
Posts: 3,933
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Post by Since84 on Apr 30, 2015 8:32:49 GMT -8
I don't understand people who call an 11% dividend increase shabby. When was the last time you got an 11% raise? Frankly it's exactly where I hoped Apple would take it and I thought I was being overly optimistic. Can't wait to see what the dividend is in 10 years.
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Post by archibaldtuttle on Apr 30, 2015 8:34:25 GMT -8
This is a very important level to see a bounce. We're just below the 50-day moving average -- if we fall further from here before bouncing it will represent a lower low, which is no good technical-wise...
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Post by joel90069 on Apr 30, 2015 8:38:05 GMT -8
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Post by gtrplyr on Apr 30, 2015 8:53:41 GMT -8
Well ... this sucks but at least we can rest assured that 200 Billion buys back a LOT of stock !
Cheers to the longs ....
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Deleted
Deleted Member
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Post by Deleted on Apr 30, 2015 8:59:58 GMT -8
Is it FUD? No. So there you go. I've got a small surprise for the AAPL bears on Monday. I can say no more...
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Ted
fire starter
Posts: 882
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Post by Ted on Apr 30, 2015 9:15:18 GMT -8
As I have mentioned before, and I think bears reviewing, I think it is all about the Watch. The conference call did nothing to indicate real success. One still has to wonder if this isn't a solution in search of a problem. Moreover, Apple Pay, HBO, the new MacBook are not yet declared winners. So people think AAPL may have peaked. And still moreover, the low increase in the dividend was not reassuring. The perception that Apple may have peaked is particularly dumb when the CFO just gave guidance indicating continued ~25% growth. If some see Apple's glass less than half full, fine, I'll buy their shares and then wait patiently. It takes a creative mind or a lotta bullshit to see this stock in a negative light.
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