Posts Tagged ‘Apple Computer’

Apple Isn’t the Problem. Wall Street’s Big Banks are the Problem.

Yellow highlighting mine, reminds me of my student days, only neater. – Ilene 

Apple Isn’t the Problem. Wall Street’s Big Banks are the Problem.  

Young man holding iphone in front of mouth, studio shot

Courtesy of Robert Reich

Why is the Federal Trade Commission threatening Apple with a possible lawsuit for abusing its economic power, but not even raising an eyebrow about the huge and growing economic (and political) muscle of JP Morgan Chase or any of the other four remaining giant banks on Wall Street?

Our future well being depends more on people like Steve Jobs who invent real products that can improve our lives, than it does on people like Jamie Dimon who invent financial products that do little other than threaten our economy.

Apple’s supposed sin was to tell software developers that if they want to make apps for iPhones and iPads they have to use Apple programming tools. No more outside tools (like Adobe’s Flash format) that can run on rival devices like Google’s Android phones and RIM’s BlackBerrys.

What’s wrong with that? Apple says it’s necessary to maintain quality. If consumers disagree they can buy platforms elsewhere. Apple was the world’s #3 smartphone supplier in 2009, with 16.2 percent of worldwide market share. RIM was #2, with 18.8 percent. Google isn’t exactly a wallflower. These and other firms are innovating like mad, as are tens of thousands of independent developers. If Apple’s decision reduces the number of future apps that can run on its products, Apple will suffer and presumably change its mind.

On the other hand, the four largest U.S. financial institutions are so big and the rest of the economy so dependent on them that if one of them makes a bad decision it can take us all down. Between them they hold more than $7 trillion in assets, over half the size of the entire U.S. economy.

So why is the FTC nosing around Apple and not around Wall Street? Because the Federal Trade Commission Act allows the agency to stop “unfair methods of competition” almost anywhere in the economy except in the financial sector. Banks are explicitly excluded.

Another reason for financial reform.

And how are we doing on that front? Senate Dems and Republicans have just agreed to jettison a $50 billion fund in the financial reform bill that would have been used to wind down operations of a failing bank. Republicans had created a smokescreen by…
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FOLLOWING UP ON APPLE

Pragcap post-apple earnings: 

FOLLOWING UP ON APPLE

Close-up of three apples in a row

As expected, Apple crushed earnings.  By Wall Street’s standards the analysts were laughably far from reality.  Apple posted EPS of $3.33 which was 36% higher than Wall Street’s ridiculous estimate of $2.44.   Revenues came in at $13.5B which was $1.5B higher than Wall Street’s estimate of $12B.

As we suspected, the “unaffiliated” estimates were much closer to the actual figures though Apple still managed to outperform these lofty expectations.  The company is providing EPS guidance that is practically comical – $2.28-$2.39.  This is well below my estimate of $2.85.

Regardless of all this, one thing is certain – Apple Inc. is absolutely smoking.


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Apple Mac Sales Soar, iPhone Misses

Apple Mac Sales Soar, iPhone Misses

Courtesy of Dan Frommer at Clusterstock

steve jobs - tbiApple threw us a curveball today: The company reported results in GAAP format, reflecting an accounting change that means they no longer have to distribute iPhone revenue and earnings over 24 months.

Unfortunately, that means Apple’s GAAP results don’t match up with non-GAAP estimates. So analysts are going to have to tweak their models.

As expected, the Mac had a monster quarter. Apple reported 3.36 million Mac shipments, higher than the Street expected. But the iPhone was relatively weak: Apple only shipped 8.7 million iPhones, lower than the 9.1 million Street consensus.

Steve Jobs also touted the Apple tablet in the earnings release: "The new products we are planning to release this year are very strong, starting this week with a major new product that we’re really excited about."

Shares resumed trading at 4:55 and were immediately down about 1%. But now it seems to be creeping upwards.

Join us for LIVE coverage of the company’s conference call, beginning at 5:00 p.m. ET. Click here for the latest.

Key stats:

  • GAAP Revenue: $15.7 billion
  • GAAP EPS: $3.67
  • Macs: 3.4 million vs. 3.0 million consensus
  • iPhones: 8.7 million vs. 9.1 million consensus
  • iPod: 21 million vs. 21.0 million consensus
  • Gross margin: 40.9%
  • Guidance (Rev.): $11.0 billion to $11.4 billion
  • Guidance (EPS): $2.06 to $2.18

LIVE Conference call coverage: (refresh for the latest)

4:52 Waiting for call to begin..

5:04 Call begins. Opening remarks from IR boss.

5:04 COO Tim Cook, CFO Oppenheimer on the call. No Steve Jobs. (Jobs not expected.)

5:05 Oppenheimer: We’re thrilled to report our best quarter ever! New records for Macs and iPhones. All historical comps busted because of new accounting rules. Peter will explain in detail coming up. Now going over results from release.

5:07 Record Mac sales of 3.36 million, beating by over 300,000. Up 33% year-over-year. Compares extremely favorable to ICD’s 17% year-over-year growth for the market. iMac especially huge.

5:08 New records for K-12 and High ed for Dec. quarter.

5:08 Traditional iPods declined, but 55% y/y increase in iPod touch, sending up ASP and revenue.

5:09 Strong sales of music, video, and apps drove up iTunes sales. Features over 8,000 films,…
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100 years ago African-Americans marched down 5th Avenue to declare that black lives matter

 

100 years ago African-Americans marched down 5th Avenue to declare that black lives matter

Courtesy of Chad WilliamsBrandeis University

Silent protest parade in New York against the East St. Louis riots, 1917. Library of Congress

The only sounds were those of muffled drums, the shuffling of feet and the gentle sobs of some of the estimated 20,000 onlookers. The women and children wore all white. The men dressed in black.

On the afternoon of Saturday, July 28, 1917, nearly 10,000 African-Americans marched down Fifth Avenue, in silence, to protest racial violence and white supremacy in the Uni...



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Zero Hedge

Swedish Government On Verge Of Collapse After Admitting 'Accidental Leak' Of Entire Nation's Info

Courtesy of ZeroHedge. View original post here.

Sweden’s government is being quietly rocked by a major scandal. So far the market has paid it little regard, but, as Citi warns, it may soon escalate...

Sweden appears to have accidentally leaked the details of almost all of its citizens. And now it's getting worse as the leak happened in 2015, but only emerged las...



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ValueWalk

Warren Buffett Goes Into Genius Mode!

By VW Staff. Originally published at ValueWalk.

Check out the top times that Warren Buffett goes into Genius mode!

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Words Of Wisdom From Charlie Munger (Part 3) Want to become a better investor, reading is crucial ...

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Chart School

U.S. Dollar; Triple support test after rare 30-week decline

Courtesy of Chris Kimble

From 2011 to the start of this year, the US$ has been pretty strong, as it rallied nearly 30% in 6-years. Over the past 30-weeks, King Dollar has been rather weak.

Below looks at the US$ over the past 18-years, with 30-week performance applied-

King Dollar has declined over 9% in the last 30-weeks at (1). As one can see, this sharp of a decline in 30-weeks hasn’t taken place a ton of times since the late 1990’s. The decline has the US$ testing the bottom of a 24-month trading range and two rising support lines at the same time at (2...



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Digital Currencies

Bitcoin (BTC/USD) Consolidating Near All-Time High Ahead of Aug 1 Fork

Courtesy of ZeroHedge. View original post here.

Bitcoin (BTC/USD) Weekly/Daily

Bitcoin (BTC/USD) slid yesterday on more profittaking, and now sits just above where it had broken above the daily chart's downchannel resistance. On the weekly chart, with last week's massive rally, the BTC/USD appears potentially to be in the late stages of a bullish flag pattern. With the August 1st fork looming, and daily RSI, Stochastics and MACD tiring, BTC/USD can be expected to continue consolidating today ahead of this key date. Although the negative weekly MACD crossover has proved a false signal for now...



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Insider Scoop

3 Reasons Comcast Should Acquire Verizon, And Why This Cost Dish A Downgrade

Courtesy of Benzinga.

Related CMCSA Analyst Says 31 Million Homes Could Cut Cord On Legacy Media; New Study Shows 64% Of U.S. Households Now Stream Programs ...

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Biotech

Biologics: The pricey drugs transforming medicine

Reminder: Pharmboy and Ilene available to chat with Members, comments are found below each post.

 

Biologics: The pricey drugs transforming medicine

Courtesy of Ian HaydonUniversity of Washington

The cells inside this bioreactor are the real pharmaceutical factories. Sanofi Pasteur, CC BY-NC-ND

In a factory just outside San Francisco, there’s an upright stainless steel vat the size of a small car, and it’s got something swirling inside.

The vat is stud...



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OpTrader

Swing trading portfolio - week of July 24th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Members' Corner

Why we need to act on climate change now

 

Why we need to act on climate change now

Interview with Jan Dash PhD, by Ilene Carrie, Editor at Phil’s Stock World

Jan Dash PhD is a physicist, an expert at quantitative finance and risk management, and a consultant at Bloomberg LP. In his thought-provoking book, Quantitative Finance and Risk Management, A Physicist's Approach, Jan devotes a chapter to climate change and its long-term systemic risk. In this article, Ilene interviews Jan regarding his thoughts on climate change and the way it can affect our futu...



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Mapping The Market

The App Economy Will Be Worth $6 Trillion in Five Years

Courtesy of Jean-Luc

This would be excellent news for AAPL and GOOG to a lesser extent although not inconsequential:

The App Economy Will Be Worth $6 Trillion in Five Years 

In five years, the app economy will be worth $6.3 trillion, up from $1.3 trillion last year, according to a report released today by app measurement company App Annie. What explains the growth? More people are spending more time and -- crucially -- more money in apps. While on average people aren't downloading many more apps, App Annie expects global app usership to nearly double to 6.3 billion people in the next five years while the time spent in apps will more than double. And, it expects the...



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Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

CLICK ON CHART TO ENLARGE

EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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