Tag Archives: Apple

Apple & First Solar

Apple has been one of my absolute favorite stock for over ten-year now, and the company has right now become the first U.S company to close with a market cap of more than $700 billion. Market cap today is 720,14 billion.

Apple is now twice as valuable as Microsoft ($349,6 billion), and has nearly doubled the market cap to the previous worlds biggest company Exxon Mobile ($379,01 billion). Exxon is not a green company, but Apple is and that`s where the future is.

Apple solar

Apple`s CEO Tim Cook told investors a year ago that they need to «get out of the stock» if they only care about profits because what he really cares about is the climate change. Tim Cook said yesterday that the climate change is real. He also said;

«Our view is that the time for talk has passed, and the time for action is now. We`ve shown that with what we`ve done.»

All of Apple`s data centers are now powered by renewables.

Wind power has long been cheaper than solar, but solar power is the future. According to IEA (International Energy Agency), solar will become the biggest single source of electricity by 2050. The price of solar has been declining much faster than wind, and once the solar is cheap enough it will become mainstream.

Some investors have a 12-month average target price of $132,56 and the highest target was $165. If Apple continue to rise in market value it would exceed $960 billion. Investor Carl Ichan said the stock price for Apple is cheap and expect it to grow further. The stock is now trading at $123,89, up 1,54%.

Apple is the most popular luxury brand in China, and what do you think will happen when the brand goes mainstream?

First Solar is trading at $48,89, up 0,70%. Many investors have a hold on that stock now. Revenues fell 29,7% and that`s faster than the average of 9,8%. That hurt the bottom line and decreasing earnings per share.

Cash flow is also down by 112,5% and debt-to-equity is 0,05 which is also lower than the average. It doesn`t look good right now for First solar. Their return on equity is also below its industry average. it`s below S&P 500 too.

The stock was gaining in after-hours trading yesterday and increased nearly 2% on heavy volume after Apple`s solar power announcement. Price earnings is 18,43. EPS: 2,66.

It`s panels are still far behind that of their competitor SunPower (SPWR). First Solar is cost-competitive compared to the rest of the industry and they have made a huge breakthrough. They said in an announcement;

“it has set yet another world record for cadmium telluride (CDTE) photovoltaic (PV) research cell conversion efficiency, achieving 21.5 percent efficiency certified at the Newport Corporation’s Technology and Applications Center (NYSE: TAC) PV Lab.”

This makes First Solar as a clear industry leader in cadmium telluride PV technology.

 

 


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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Apple is the best luxury brand in China

Apple is the biggest tech company in the world and have the greatest brand in the West. The latest report told us that Apple sold more phones like never before. A big brand in the West, but how is the brand doing it in China?

The Hurun Research Institute released the Hurun Best of the Best Awards 2015 (http://www.hurun.net/en/ArticleShow.aspx?nid=9604) last week, based on the results of the Hurun Report Chinese Luxury Consumer Survey 2015. This report shows us that Apple beats Lous Vuitton, Hermes, Gucci, Chanel, Dior and Samsung in a survey of China`s wealthiest shoppers.

Apple is now ranked as China`s most coveted luxury brand!

Think different

This is a survey from the individuals whose net worth is above 10 million RMB or $1,6 million. Apple is on top for both men and woman, and is the preferred brand for gifting by China`s richest. Hermes was the winner last year, and Burberry and Prada dropped out of the Top 10 list this time.

Best Brand for Gifting by Men

Brand         % of respondents
1   Apple    20,30%
2   LV         13,40%
3   Gucci   6,80%

Hurun Report Chairman and Chief Researcher Rupert Hoogewerf said, “The government’s crackdown on luxury gifting continues to have its effect, with luxury gifting down a further 5% year on year, taking it to 30% over two years. Travel retail continues to change the dynamics of luxury in China, with 7 out of 10 luxury goods bought by Chinese now being bought overseas.”

Best brand for gifting by woman
Brand             % of respondents
1   Apple       18,90%
2   Chanel     13,20%
3   LV             10,20%

The preferred gift for Chinese millionaires for men is Watches, overtaking red wine as a category. Red wine had a bad year, and dropped down to third. Second on the list is consumer electronics, as travel vouchers continues to show a strong rise for the third year running.

A little bit different at the woman list, as Jewelry is at the top of the list and (of course) Fashion took the seconds place, followed by consumer electronics. Watches is the most wanted product as a gift in China, and this is good news for Apple as they are planning to launch their new watch soon.

Spring Festival, widely known as Chinese New Year in the West, is the most important traditional festival, and most important celebration for families in China. Most Chinese have 8 days off work, and the Chinese New Year starts on Thursday 19 february and end on 5 March.

2015 is the year of the goat.

«The upcoming Chinese New Year would be the peak of gift giving in China,» Hurun research said, and Apple has become the most eye-catching gift brand this year.»

 


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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Tech Rally today

Nasdaq had a bad day yesterday and slid -1,89%, but the major index is the only one that is in positive territory for the year. One of the biggest losers on Nasdaq yesterday was Microsoft. Down -9,25%.

Microsoft reported earnings of 72 cents per share on $26,47 billion in revenue for the second fiscal quarter, but the revenue was better than analysts estimations. The negative is the weaker than expected Windows non-Pro revenues which is down -13% YoY, and the commercial license declined 2%.

msft

(Picture: Microsoft down -9,25%)

CEO Satya Nadella said it doesn`t take much longer time to successfully transition from a licensing sales focused firm into a software as a service firm. Microsoft`s cloud business doubled and came in on $5,5 billion i sales. Xbox sales fell to 6,6 million units (from 7,4 million) in sales.

Caterpillar was another big company that slid yesterday. Down -7,18%. The company delivered a shockingly weak outlook for this year and investors got scared. It seems like Caterpillar is in big trouble.

Analysts expected earnings of $1,55 a share but it fell about 20%, landing on $1,23 a share. Its Q4 operating profit slumped 27% YoY. Lower oil prices is negative for their construction business. Caterpillar lowered its 2015 sales expectations for mining and construction equipment, and that was not music in investors ears.

Good news is coming later today. First of all; Alibaba is coming out with the second report as a public company. The Chinese e-commerce giant is expected to post a quarter of tremendous growth. EPS is expected to grow 39% YoY! It`s also expected a massive 48% improvement in YoY revenue!

It is expected to see Tmall and Taobao to deliver strong revenue momentum on the back of higher e-commerce penetration in China. Alibaba has an ongoing international expansion and the stock is up 3,3% in three months.

ATH is 119,15 which is from 10 November last year. The stock was down -1,01% yesterday, and there are some short interest in the stock right now. The opening trade is now $102,94. 52-week low is registered as $82,81. Outstanding shares are 2,465,006,000. The stock is priced richly with Alibaba`s market cap now over $250 billion, but the market is looking for huge surging numbers which could validate the company`S valuation.

Yahoo! Is set for a rally today, trading up about 8% AHT. The company is spinning off Yahoo`s $39 billion stake in Alibaba Group Holding. The anticipated decision announced yesterday will enable Yahoo to avoid paying billions of dollars in future taxes.

A newly formed entity called SpinCo will inherit ownership of the company`s 384 million shares in China`s Alibaba Group Holding when the tax-free spinoff is completed toward the end 2015. Owner of Yahoo shares will receive stocks in SpinCo, which is designed as an investment company.

The old giant is struggling to grow and the firm earned $166 million, or 17 cents per share. Down -52% from the same periode last year. Yahoo`s revenue dipped 1% to $1,25 billion, and investments in Alibaba and Yahoo Japan is the main reason Yahoo`s stock has more than trippled last years.

They have a 36 stake in Yahoo Japan, worth about $7 billion. The Alibaba investment is worth far more than their own online services, and their competitors like Facebook and Google have grabbed a big piece of the digital marketing budget.

Have a closer look at Apple today. The stock is also set for a rally. Up about 7% ATH. Revenue rose to $74,6 billion from $57,6 billion a year earlier. Profit of $18 billion is the biggest ever! Apple reported net profit of $18,02 billion, or $3,06 per diluted share, compared to $13,07 billion, or $2,07 per share a year earlier. Apple faced a clear headwind from a strong dollar.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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What – Is Apple down 85%?

Don`t panic if you think that the price of Apple Inc is down -85%, because it isn`t. It`s just your brokers fault. They have not changed the amount of shares as they were not prepared for the coming share split as we all saw in Apple Inc.

Apple

This is happening many times and I have seen that in stocks I have owned many times. So, what is going on here? Apple stock is cheaper because its 7 for 1 split went into effect. The Apple`s share price is back to a 2006 level, trading above $100.

In a traditional 2 for 1 split, all owners of common stock have their share counts doubled while the price is simply cut in half. Shares are now worth half as much as they were before, but there are twice as many available and the percent ownership of each shareholder is unchanged.

Most of the data surrounding stock splits seems quite bullish. In a study by Dr. David Ikenburry of Rice University, he found that stocks which split 2-1 on average outperformed the control group he created by 8% after a year and by up to 12% after three years. The study looked at stocks between 1975 and 1990.

Dr. David Ikenburry did another research including data from 3-1 and 4-1 splits and found that the results from 1990 to 1997 were practically identical to the findings from the original study. A study from 2003 from the Chinese and City Universities of Hong Kong and the Hong Kong Polytechinic University corroborates Ikenburry`findings with similar evidence from the stock market in Hong Kong.

The reason why stocks is performing better after a stock split is probably because they become more affordable to smaller individual investors. They simply look cheaper. People are probably not willing to sink $600 into a single share of Apple, but they may be amenable to spend $400 on 4 shares after the 7-1 split. It`s more a psychological thing.

The Wharton School of Business found that institutions have increased their percent ownership in stocks from 34% in 1980 to 67% in 2010, and its widely believed that institutions like mutual funds are less perceptible to psychological biases like a lower sticker price than non-professionals.

Ikenburry belive that the stocks perform well when they split because the split itself is a signal of bullish sentiment from management. Apple hasn`t had a new product catalyst to ignite its fundamentals since the iPad was released in 2010.

This year CEO Tim Cook has promised several new types of products and that may be the reason Apple`s management has the confidence to split the stock. What could be worse for a CEO than taking a high value stock, splitting it into pieces, then see the face value fall even further sending investors into a panic?

Apple`s acquisition of Beats Electronics can make the stock go higher, but I don`t understand that Apple was so interested in their headphones. They could make their own at a cheaper price. Dr. Dre must, for all i know, have another plan with a new product we don`t know yet.

The music streaming business can be a good business, but so far it isn`t. They may be changing the strategy to make the $3 billion acquisition of Beats a boost and give Apple new income. Anyway; the acquisition of Beats Electronics is a sign of things to come. They have competitors. Google`s Youtube is the world`s largest music streaming service, and Youtube disclosed that 40% of its total users are coming from mobile devices.

 
Reports today:

10:00 a.m EST JOLTS Job Openings
10:00 a.m EST Wholesale Inventories m/m

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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What is a stock split?

 

You probably know that Google had a stock split a while ago, and now, Apple is headed for the same on June 9. But what is a stock split and is it good or bad for the stockholders? Let`s take a closer look at a stock split and what it is.

 

A stock split is a corporate action in which a company divides its existing shares into multiple shares. The number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because the split did not add any real value.

Apple

The most common split ratio is 2-for-1. This is called «forward stock split», which means that the stockholder will have two shares for every share held earlier. Apple have a 7-for-1 split, but there are number of «groups» impacted by the split.

 

Let`s take an example: Company A has 10 million shares outstanding and the stock price is $100. The Company A`s market cap is $1 billion. But the board of directors want to split the stock 2-for-1. The new number of stocks will double to 20 million, but the market cap is still $1 billion, as the stock price drops down to $50. Market cap is unchanged.

 

So, what is the point of doing that? They might have other things to do. Well, first of all, a split is usually undertaken when the stock price is quite high, making it pricey for investors to acquire a standard board lot of 100 shares.

 

If Company A`s price per share was $100 each, you would need to pay $10,000 to own 100 shares. If the share price was only half of that ($50), then you need to pay $5,000 for 100 shares. Second, the more shares a company have, the greater the liquidity for the stock, which facilitates trading and may narrow the bid-ask spread.

 

As you can see, the market cap is unchanged, but a split can often results in renewed investor interest, and that can have a positive impact on the stock price. Stock splits in blue chips companies like for example Apple and Google are a great way for the average investor to accumulate an increasing number of shares.

 

Many of the best companies routinely exceed the price level at which they had previously split their stock, causing them to undergo a stock split yet again. I have been following Amazon.com since its start in late 90`s.

 

I see three splits in the Amazon.com stock split history database. The first split for Amazon took place on June 02, 1998. This was a classical 2-for-1 split. It means for each share of Amazon owned presplit, you now owned 2 shares. For example; a 1000 share position pre-split, became a 2000 position following the split.

 

The second Amazon split took place on January 05, 1999. This was a 3-for-1 split. For each share of Amazon owned pre-split, you now owned 3 shares. For example; a 2000 share position pre-split, became a 6000 position following the split.

 

The third split took place on September 02, 1999. This was a classical 2-for-1 split, meaning for each share of Amazon owned pre-split, you now owned 2 shares. For example; a 6000 share position pre-split, became a 12000 position following the split. I remember all the splits very good.

 

It was exiting and it was in the beginning of a new era in the tech stock history. Keep in mind that when they split the stocks, the market cap is the same, but the number of stocks is changed, which means you own more shares, but the shares are valued at a lower price per share. Very often, we that a lower price for a stock can attract a wider range of buyers. And here is the interesting thing; when the stock price goes down, the demand for the stock is increasing. This means of course that the market cap will rise which is good for the company.

 

As always in the stock market; you can`t only look at only one metrics. You have to look at the underlying fundamentals of the business. Looking at the history of Amazon, an original position size of 1000 shares would have turned into 12000 shares today.

 

Google made its split because they want more control over the company and shares. You have different share classes in Google, and all of them have different prices. You can see Google, Google A and Google C when you search for the stock.

 

Many investors are wondering if Apple`s split will mark a peak in its shares as both Google and MasterCard declined after its two share classes split. You can`t compare Apple`s split to Google`s split, because of its different share classes, as one of which had no voting rights, so each class really became its own separate trading vehicle.

 

Right after the split in Google, the shares declined, but that was because of a poor earnings report and not because of the A class shares in Google. I just wonder if Apple will move into the Dow after this split?

 

Apple has three splits in the Apple stock split history. The first one took place on June 16, 1987. This was a 2-for-1 split. The second split took place on June 21, 2000. Also a 2-for-1 split, and the second split took place in February 28, 2005, with a 2-for-1 split. Apple`s 7-for-1 split is approaching and will take place on June 9, 2014.

 

Other key dates:

 

The record date: June 2, 2014 – determines which shareholders are entitled to receive additional shares due to the split.

 

The split date: June 6, 2014 – shareholders are due split shares after the close of business on this date.

 

The Ex date: June 9, 2014 – the date determined by Nasdaq when Apple common shares will trade at the new split-adjusted price.

 

This split means that six additional shares of stock are issued for each share in existence on the Record date, June 2, 2014. The number of shares outstanding will be multiplied by seven and earnings per share will be divided by seven.

 

Reports today:

 

08:30 a.m EST Core Durable Goods Orders m/m

08:30 a.m EST Durable Goods Orders m/m

09:00 a.m EST S&P/CS Composite-20 HPI y/y

09:00 a.m EST HPI m/m

09:30 a.m EST ECB President Draghi Speaks

10:00 a.m EST CB Consumer Confidence

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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