And wives spent more time on their Iphones than they do nagging their husbands. Which is OK by me!
I think a lot of the funk has to do with Apple's predictability. Every quarter Apple increases revenues and profits by 35% EOY and beats earnings estimates. It's hard to manipulate a stock that consistent. So, Wall Street trading desks stay away from it. That's a good thing, because after they've pumped up a stock they'll destroy it in a heartbeat. Look what they did to GoPro. Netflix is next on the chopping block. First time they have a slowdown in subscriber growth, which could be next quarter, they'll be cut in half. Wall Street can't do much to damage Apple.
Some people like to buy junk (because they can't afford anything better), some prefer quality. Some people wear diamonds. Some wear tinted glass. But one thing for sure: the people who sell diamonds make a lot more money than the dime stores that sell tinted glass beads.
Apple's up 7% YTD. The S&P is up 2%. How is beating the S&P500 by better than 3 to 1 not "an increase in shareholder value?"
I know we all wanted 50%. All shareholders do. But the market is never going to give us anything. If it were that easy everybody would be owning Apple and nobody would be working. Take the seven percent (which has made me 30% on my LEAP options) and be happy with that. That's all the market would give so far this year. It's not the company's fault.
ginom, if Apple and other multinational companies were honest with their accounting, bringing the money home would not be an issue. Our IRS credits multinational companies for the taxes they pay overseas, so they are not taxed once in Europe or Asia and again when they repatriate the money.
What Apple is trying to do is pretend that its overseas profits, and perhaps including some from the USA, all originate in Ireland, which has a 12.5% corporate income tax rate.
If Apple repatriated that money to the USA, it would pay 35% - 12.5% == 22.5%. Since Apple already pays 25% on what it earns in the USA (effective USA corporate income tax is 35%, but there are loopholes and deductions) Apple would pay less taxes to bring the money home (22.5%) than what it pays on earnings in the USA (25%).
The European Union is cracking down on this kind of tax evasion, and it will beat Apple's and other multinational corporations brains out in penalties and fines. So, Apple is not going to keep that money. If it is denominated in local currency, it's already lost much of its value, due to appreciation $US. It's just a case of multinational companies --- specifically their accountants --- being stupid about not wanting to pay their fair share of taxes.
I also own Nike and Disney. They earn less than half what Apple earns, and have slower growth. But their stock prices are higher and always seem to float up with little resistance. The market is clearly having a hard time coming to terms with Apple. But, that's how we make our money. Buy now and wait for the thundering herd to catch up.
Wall Street is never going to let you sit back and make easy money. Their analysts are always "stirring the pot" with rumors, primarily to drive volatility up and down for their trading desks, but also to make names for themselves by being controversial. Occasionally, they are even right. As an investor you can't let anybody else's opinions shake you up. You have to make YOUR money by ignoring the noise. Most of the time it's just that --- meaningless, random noise.
I think the "problem" with Apple is the very predictability of its huge growth in profits. It beats estimates every quarter, and keeps on growing. The Wall Street trading desks do not like stocks of companies that have predictable growth, because they cannot manipulate them for short-term trades. So, don't trade Apple. That's the Wall Street trading desk's game. Just own Apple for the haul and let the traders beat themselves silly going nowhere.
I've had Apple in one of my accounts since 2005. Never bought or sold a single share, and it is up more than 10x in 10 years.
Kevin O'Leary is a little fly buzzin' around Tim Cook's rear end. Asking him for an opinion about Apple is like asking a little leaguer how to strike out an MLB designated hitter.
For some reason these guys like to shoot their mouths off. It was exactly one year ago when Apple was I the high 90's that Doug Kass, who's fairly intelligent, said, "I just increased my Apple short." Apple ran pretty fast to $130 after that. So, why advertise to the world that you're an idiot?
Yes, but every large company from Coca Cola to Walmart has to deal with this one they have begun to saturate their market space. They have to find ways to increase EPS per share by either upselling their customers, buying back shares, or gaining economies of scale that reduce costs.
The difficulty for Apple at the moment is that they're being pegged by only one metric: number of Iphones sold. It doesn't matter if EPS is $50.00 a share. The only thing is how many Iphones.
I noticed that Wall Street surreptitiously changed its metric for Apple performance. They no longer care about the traditional measures of EPS and margins. Now it's only about the quantity of Iphones sold. If the quantity doesn't go up 30% every quarter, then Apple is a "bad" stock!
Surprises me too. I bought some Nike options a month ago and sold them today for 45% profit. I thought it would take a year to make that profit, but I got it today. This is the way Apple should be performing.