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Post by CdnPhoto on Jan 6, 2016 18:52:00 GMT -8
Wait, wasn't the Apple Watch a failure because it wasn't round?
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Post by tuffett on Jan 6, 2016 19:06:47 GMT -8
I think the time may be here to switch from massive buybacks to massive dividends. With a buyback you can increase your EPS, but as this decline illustrates, the PE can just compress and not help the stock price. However, with dividend, that is real money. Imagine how many people would be buying shares if AAPL is giving a 5 or 6% yield (or even higher). I think that would give much better support to the stock than artificially increasing EPS through buybacks Agreed. Almost nothing you read or hear about concerns Apple's EPS. It's somewhat irrelevant to how the company is perceived. It's all about unit sales and cash. If iPhone sales drop and EPS rises due to buybacks you can bet nobody will give a rat's ass about the EPS. Dividends are at least tangible cash into shareholders' pockets.
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Post by CdnPhoto on Jan 6, 2016 19:09:16 GMT -8
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Post by hydrarx on Jan 6, 2016 21:41:51 GMT -8
Big day tomorrow with the Chinese exchange down -7% and halted out. 100 is a very important level to watch. Fall & close below 100, and next support won't be until 94. Above 100, we have resistance at 105.
Really hoping AAPL has got some amazing earnings numbers coming up....
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bud777
fire starter
Posts: 1,352
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Post by bud777 on Jan 6, 2016 23:25:08 GMT -8
Interesting times. This is when I have to remind myself that Apple is concerned with one thing. Making the products that enrich peoples lives. Despite all the focus on financial fundamentals and business theory, I think this more than anything else drives the company. It is just a secondary benefit that when you do this, people want your product and you become the most successful company in the world. Given that, I think about the incredible increase in R&D spending Apple has committed to. New technologies are coming down the pike everyday. Breakthroughs in power, connectivity and compute power that we have not even begun to understand how to use. Think how different the world was just 20 years ago. And the pace of innovation is accelerating.
Here is another point. Think about innovation and what makes it happen. There is a reason that most innovation comes from small start-ups. Any new idea, in tech or elsewhere has to compete with existing ideas for support and funding. In most companies, innovation is stifled by the competition for resources, but with Apple that doesn't have to happen. Certainly Google and others are funding their R&D, but only Apple has the ability to do that over the long haul.
So, in the midst of this current slide, I have to remind myself that in a 5-10 year horizon, no one is better positioned to succeed than Apple. It happened over the last 5 years, and I believe it will continue to happen.
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Post by archibaldtuttle on Jan 7, 2016 0:19:24 GMT -8
AAPL trading at the equivalent of $98 on the Frankfurt exchange at open.
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Post by Luckychoices on Jan 7, 2016 12:28:34 GMT -8
Interesting times. So, in the midst of this current slide, I have to remind myself that in a 5-10 year horizon, no one is better positioned to succeed than Apple. It happened over the last 5 years, and I believe it will continue to happen. This.
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