Apple stock

[Denny Crane]

What are you talking about? They definitely accumulated more cash last quarter.

Did you just read the conference call? Show me where they showed increased cash flow?

he didn't say anything resembling a claim they had increased "cash flow."

 

[magnifier661]

he didn't say anything resembling a claim they had increased "cash flow."

That was a response to why I said they jumped in price at $700.

 

[magnifier661]

They're also decreasing the supply which increases price.

Econ 101, supply/demand curve.

So that supports more in favor of my theory that the stock will increase

 

[Denny Crane]

So that supports more in favor of my theory that the stock will increase

But it's not. Scary, eh?

 

[blazerboy30]

That was a response to why I said they jumped in price at $700.

No it wasn't.

That was your response to me saying that they accumulated more cash last quarter after you said they didn't.

 

[magnifier661]

No it wasn't.

That was your response to me saying that they accumulated more cash last quarter after you said they didn't.

I clarified why I said it later

 

[magnifier661]

But it's not. Scary, eh?

Lmao from one day of trading? Lmao

 

[Denny Crane]

Lmao from one day of trading? Lmao

From the whole history of apple buying back its stock over time and people wanting to pay less and less for "less supply" of the shares that remain.

 

[blazerboy30]

So that supports more in favor of my theory that the stock will increase

You've kind of been all over the place in this thread.

I asked you what the stock was worth 3-4 quarters ago, and you said it was "$790-ish".
Now you said that you get a value of $500 / share today using an "x earnings" valuation method.
If you used an "x earnings" valuation method 3-4 quarters ago, you would have come up with a valuation of less than $500/share, and not even close to your $790 / share.
In fact, it would have been about $420 using your "x-earnings" method.

 

[magnifier661]

From the whole history of apple buying back its stock over time and people wanting to pay less and less for "less supply" of the shares that remain.

They aren't buying them back right now Denny. Give it time. I have an open invitation for you. Seems you would rather use words than actually pony up and put money where your mouth is.

 

[Denny Crane]

Kind of?

 

[Denny Crane]

They aren't buying them back right now Denny. Give it time. I have an open invitation for you. Seems you would rather use words than actually pony up and put money where your mouth is.

They've been buying back up to $10B of stock in the last year. It's not something they started doing today or will start tomorrow.

http://www.theverge.com/2012/3/19/2884043/apple-stock-buyback-dividend

Apple announces $10b share buyback starting in fiscal 2013, $2.65 dividend for Q4

March 19, 2012


Ahead of a conference call this morning, Apple has announced a pair of initiatives for its massive stockpile of cash totaling approximately $100 billion: a stock buyback beginning in fiscal 2013 (which begins on September 30th of this year) along with a per-share dividend of $2.65 to start sometime in fiscal Q4, which starts on July 1st. The buyback is expected to run over three years.

 

[magnifier661]

They've been buying back up to $10B of stock in the last year. It's not something they started doing today or will start tomorrow.

60B is much different than 10B

 

[Denny Crane]

LMAO in one day LMAO?
?
?

 

[magnifier661]

Kind of?

Well what better time to take advantage of my "all over the place" assessment of the value. I mean come on Denny! You will be $1,000 richer. Easy money!

 

[magnifier661]

LMAO in one day LMAO?
?
?

I thought you were referring to this day's trading after the announcement of the 60B buy back.

 

[Denny Crane]

60B is much different than 10B

No shit sherlock?

 

[magnifier661]

No shit sherlock?

So your argument is skewed Sherlock! Hahaha

 

[jlprk]

MSFT is up 7.8% in the last 5 days. Apple owners are moving their money.

Now 10.5% in 6 days.

 

[magnifier661]

Now 10.5% in 6 days.

Xbox

 

[magnifier661]

Apple up 5 points (1.15%) this morning.

 

[magnifier661]

Now up 5.35 points (1.35%). Share price of 410.60; before quarterly call of 386.00

 

[blazerboy30]

Now up 5.35 points (1.35%). Share price of 410.60; before quarterly call of 386.00

Only 22% more to go!

 

[magnifier661]

Only 22% more to go!

Hahahahahahahaha

 

[magnifier661]

Don't look now but apple is rallying. The $500 mark maybe sooner than July. It's at $425 right now, up another 2.98%.

I wish I would have took blazerboys advice and placed a $450 call on apple. Missed the boat!!!

 

[magnifier661]

Up 30 points in less than a week and a half. At this rate, $500 could be accomplished by the end of may.

 

[magnifier661]

433.26 +16.06 (3.83%)

 

[magnifier661]

I think it's so funny that the bears are trying desperately to Beat the stock down, yet the stock is climbing. Guess the bears were wrong so far.

 

[blazerboy30]

I think it's so funny that the bears are trying desperately to Beat the stock down, yet the stock is climbing. Guess the bears were wrong so far.

Who are the bears? Can you provide some quotes of people saying the stock will go down?

 

[magnifier661]

Who are the bears? Can you provide some quotes of people saying the stock will go down?

http://www.thestreet.com/story/11726716/1/kass-more-bruises-on-apple.html

Ten days ago, I wrote "The Bear Case for Apple," in which I cited the following 10 concerns:

Quality vs. price: Apple is now selling less or equal for more money. The company used to sell a better product for more money, which is a great strategy. Its products were simply market-defining, and competitors were not close. Recently, however, things have changed, and competitors have caught up. Now Apple is selling an equal to worse product than the competition for more money (both phones and tablets). That strategy cannot work forever. This is the biggest issue.

Delivering a more complicated product: Products are also getting more complex and Microsoft-like. Apple's challenge is to deliver ever more complicated products (with a lot of new components) in sufficient quantities. See most recent Foxconn issue. Previously, we would never have seen such a story because there were never issues and nobody would dare voice them, especially not an avowed Apple zealot like the author of this interesting article.

The Oracle of Cupertino: Steve Jobs is no longer around to convince consumers that his products are magical. There is no longer a single visionary voice, especially with the vision of Steve Jobs. There are stories floating around about internal disagreements and power struggles given the unique void created by the loss of a single dominant figure in an unusual corporate structure that he controlled.

Increasing product homogeneity: Apple no longer has a huge ecosystem advantage. Most if not all the apps that consumers care about are available on Android and Microsoft (MSFT), which can also run Office apps such as Excel that Apple doesn't. The first-mover advantage might be lessened or lost if Apple continues to try to do everything on a proprietary basis -- for instance, maps (and who wants a smartphone with bad maps?).

Economic headwinds: Some of the markets served by Apple are saturated, and in a worldwide economy facing strong headwinds, consumers may balk at a product that can be purchased at much lower prices from competitors. Until last quarter, Apple never missed consensus expectations during a product transition. There is more to last quarter's miss than transition.

Poor economic proposition for Apple's partners: Apple's carrier partners do not like the economics they give to Apple. Apple's partners have shown that they can and will shift to the good alternatives that consumers seem to like (e.g., Samsung Galaxy).

Roadblocks to new initiatives: Potential business partners in general do not like or trust Apple relative to other initiatives. The music industry and AT&T (T) have not had great experiences with Apple, and the company might find it hard to sign deals for new initiatives.

Product cannibalization: The iPad mini may cannibalize the higher-margin iPad -- or just be a neutral at best.

Growing size mandates delivery of more product blockbusters: An investor better believe in a huge new blockbuster product next year. TV is complex due to relationships with cable companies, set-top box manufacturers and channel guide programmers. Google may one up Apple in the space, as it owns Motorola's set-top box division and has Google Voice already. If it comes to integrating more complex solution for TVs with content, cable companies and other media partners have learned not to trust Apple given the poor outcomes other Apple partners have had (e.g., music industry, AT&T, etc.).

Valuation: Apple's stock is cheap on a P/E basis but arguably very expensive on price/sales (4.4x) and total absolute market capitalization basis ($625 billion).