I already own JPM from much lower. I also own INTC from sub $15 from 2008 and the dividend is up 60%+ since then. I can wait for another bump up.
He may know the direction of the business. he didn't know the immediate direction of the stock price. That may be getting determined by others with knowledge, or it may be profit taking (that $20 + hit after earnings was a 52 week high after all) or any number of things, legitimate or otherwise. If you look at it over a number of years, 10-12 is generally low range (major crashes below that temporary) and low to mid 30s high range. 20s is kinda mid-point. I am thinking this is consolidation but who knows? Not nice to see it give up gains when market as a whole rallies, but Apple suppliers aren't exactly getting a premium these days (swks, crus, etc). Even though ovti seems to have had great results selling outside the apple food chain recently.
I was replying to the guy who said he preferred buybacks to dividends. I was mainly arguing in favor of dividends. Buybacks don't return capital to shareholders, it gives it to share sellers.
I agree, I just said buybacks can be used wisely, but are mostly used stupidly. Put it this way, a lot of those stocks would be lower without the buybacks, but it just masked options dilution.
Dead wrong. No company should retain more than it can profitably invest and should distribute the remainder to shareholders to either spend as they see fit or reinvest. Share buybacks can be part of good capital allocation, although many companies use it stupidly, when their own shares are not a good investment, and just to mask option dilution. Anyway, you can always buy shares yourself. But dividends can discipline management. It forces them to make capital investments wisely. Go back and read some Ben Graham.
Sentiment: Strong Buy
Let's see, 8% plus free cash flow yield, net tangible assets growing year over year and quarter over quarter. The recent sales slump is a bit worrisome, may just be lumpiness. The acquisition also will cause some hair on the financials for a bit until we can see how they do. They have a very solid balance sheet and a history of growth. I'd cut them some slack.
The smart money sells options, or only buys them in structured plays, or if there is inside info. Buying near term options naked is just gambling.
I bought PFE in the Fall of 2008, even before the dividend was sliced in half. I sold about 30% of that buy for a 30% gain after 3 years (plus the dividend) and am up over 100% on the remainder counting the dividends. And I'll be counting them for a while. The yield is now 6% on my original basis.
Sentiment: Strong Buy
Here's an example. I own Bristol-Myers. A trailing 50 p/e, 20 forward, with drugs coming off patent, but up 5% today on heavy volume ahead of presenting at an oncology conference. It's a joke. I'd sell but then i'd have to pay taxes, plus the dividend is good. It's up 5%, Apple down almost 5%. Weird.
It's pretty funny actually. My largest position is Apple but I'm pretty well-diversified. I'm still up today. Seems like every dime pulled outta here is going into Dow names and Google (and I own both). Frankly I feel the latter are a bit overvalued and Apple under but the Street does some crazy mess short term.
This just seems like an industry where the carriers spend oodles but no one really makes money selling to them. OCLR has sales but they lose money on them. FNSR and JDSU make some but not much considering, and OPLK has a tight cost structure. Ciena, GLW, etc. Too bad cartels are illegal. But for antitrust they could all just merge and then charge the carriers what it's worth. OCLR is just a hodgepodge of companies that were all going under and looks like they' may not make it themselves.
Nope, I'm just me. I've posted about the politicos here before. Just gotta put them on ignore, although they breed like cockroaches.