Coke paid only $75/sh, and usually big companies are not afraid of paying big premium to acquire part or totality of smaller companies: Maybe Coke knows better the lukewarm future of GMCR cold business than many speculators
No doubt it's about the future. That is why Coke didn't want to pay more than $75 each share with the unknown future success of the products. They probably know a the value of the business a little better than most speculators AH.
The cold products from GMCR won't be out before the end of 2014, possibly beginning 2015. Investors are buying and paying a huge premium compared to Coke, 12 months before even one cup is sold. Ridiculous.
Only idiots or desperate shorts would buy GMCR at over $75.
Icahn is making his mistake with his increasing stake in Apple, like Paulson made his big mistake with gold.
Following big money can be great, but not when it goes down the cliff. They can afford to lose several millions, can you lose several thousands?
Now that it is stuck in the mud with their revenue and earnings, they will do like IBM in the last two years, which is to remove shares with buyback, hence the earnings look better. Cosmetics works for a while, but old faces always show their age and continue to experience gravity.
He told me that his main goal is to load up Apple with tons of debt to pay for a humongous share buyback without investing much in badly need new category products, then with less shares the earnings will look artificially higher, then investors will push the stock higher: He makes a bundle, then he sells all his shares, and he starts to short massively.
I said to him, great strategy for you. He said thank you and offered me to pay for a second big Mac. I said which one, from Apple or Macdonald?
You'll be able to "cook" on the new window plate, thanks to a new app called "CookwithTim". Since Apple's cell phones have a tendency to overheat, they will make the new one really hot.
Stay tuned and wait in line at the stores now, the new special cell phone should be ready in few months.
You let your competitors releasing products for a while, then you bring the one that is a game changer in its design, capability, and attractiveness.
The iPod: It came years after the Walkman, but with such a slick design, etc.
The iPhone: It came years after most cell phones, but with such a slick design, etc.
The iPad: It came years after many tablets, but with such a slick design, etc.
Next? Perhaps an iWatch like so many mentioned already, but they will wait that Samsung, Sony, etc., bring more of their stuff and see what is wrong with them, to present another game changer.
Apple can buy time. It is still a money machine and has a substantial amount of cash available to wait quite a while.
But investors nowadays are day traders, no time to wait for a quick buck.
When IBM started to see its revenue and earnings stalling few years ago, they went into non stop share buyback programs to prop up the stock artificially, spending $Bn every year on them. It worked somewhat, but IBM has the big advantage to have very long term customers for its services, not Apple.