1b is nothing, but the follow up loyalty tax for every android smartphone and tablet will be a good profit for apple. However, now nothing is confirm.

1 Billion to AAPL is nothing

Timing just right for AAPL to launch their Ibone 5 next month

Their marketing slogan will be " Our one is real one , you know "

You totally have no clue about the implications of this verdict.

1. The 1B cash compensation is one of the biggest in patent trial. What more significant is No other phone manufacture will dare to imitate apple products in future as their IP is protected.
2. Noone expected a verdict so soon, let alone such a huge one sided verdict for AAPL.
3. The judge can triple the damages amount to $3B and impose a sales ban on Samsung devices in the USA. HEaring on 20th Sept.
4. This verdict will have huge implications on all the other AAPL vs Samsung trial around the world.
5. AAPL is moving away from Samsung as a supplier. Samsung is no longer AAPL exclusive chip manufacturer since a year ago. Not to mention their panel displays.
6. To put you into perspective SAmsung has 14B in cash, Apple has over 110B in cash and Nokia market cap is 14B, RIMM market cap is 3.88 B
7. The 1B compensation represent most of Samsung mobiles phone profit from 2010-2012.

Samsung is down 7% today. I expect AAPL to hit 700 by this week. We could open at around 680 and trade up from there. This is the most anticipated Monday trading for AAPL.

If you think the implications of this verdict is tiny, why not try to write call options? Better still write weekly call options 700? I am sure you will get call away by Friday.

This post has been edited by pinkdevil88: Aug 27 2012, 12:08 PM

http://www.bloomberg.com/news/2012-08-26/s...ry-verdict.html

Bad news for Samsung users.
Will this effect GOOG?

This post has been edited by Mercy Shadows: Aug 27 2012, 09:26 PM

Sounds like you must be one heck of AAPL fanboy!

I'm not saying this verdict doesn't have any impact on the smartphones market. I'm sayin how the financial market will react will be different from what we may be expecting. The market have short term memory.. AAPL wins today.. we see it a lift up..but later, it's all could be forgotten.

Both Samsung and AAPL combined have taken the all the profits in the world. Others android phone makers now have to make sure their stuff doesn't infringe AAPL patents.

So, AAPL won, do you go all in? I won't. Look at the market capital of AAPL now. This is a beast.

By Sept 20, the US judge will decide how far it will go to block Samsung phone sales in US (it won't apply Samsung Galaxy S3) - Samsung will have to update its software to change the infringed portion.

In terms of trading, AAPL price could hit 700 but it could be this week or next month or next year - who knows.
But, I'm not too bullish at this level. It's good to be cautious as always.

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Added on August 27, 2012, 9:47 pmI don't think it have any major impact to GOOG because GOOG already stated it all depends on how far the phone makers going about implementing their phones or tweak their OS. GOOG gave it away free but if the phone makers choose to rip off copy of the other's phone.. they are responsible for any legal issues, not GOOG. Samsung got into trouble because of its own action.



This post has been edited by danmooncake: Aug 27 2012, 09:53 PM

You are too short sighted. Not only this verdict affect Samsung and Apple. THis affect the whole mobile industry. The share price today reflect this. Google and samsung down. Microsoft, NOK , RIMM, AAPL up. Go figure out why. AAPL did not go after GOOG because GOOG did not profit directly from Android. They went for Google proxy, all the handset makers that uses Android.

I am already all in before the verdict. AAPL is highly undervalued, low PE yet the company is still growing YOY into the future. I guess this is too hard for you to comprehend. The market cap has no correlation with the share price. AAPL has less than 15% of the world mobile market share. We are heading to 700 soon. Maybe you can consider a buy after we make a 1 for 10 split at the price of $100

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Added on August 28, 2012, 12:17 amSo you expect GOOG to come out with an explanation. Yes we copied IOS? They copied IOS and gave it away free. This is violating AAPL Patents. The problem is they did not profit from this directly. Hence AAPL decision to sue their proxy. Easier to claim for damages.

Samsung also issued a statement that the consumers lose. Do you buy their argument? In fact the consumers win. More company is going to come out with new innovations and we will be spoilt by choices.

You really need to gather info for this trial before speaking. It shows how shallow your understanding is.

This post has been edited by pinkdevil88: Aug 28 2012, 12:48 AM

pinkdevil - how come all your responses sounded like a troll?

You just can't stand it when others aren't jumping in on the
bandwagon like what you're doing with AAPL aren't you?

I'll let the share price do the talking. Thank you. Have been long since the mid 500.

No need to be rude pinkdevil. You buy when the price is high, some people prefer other segments as opposed to shelling out 700 for a stock which is pricedfor perfection.

As for me, long NOK since 2.00 at 10,000 units. Gonna ride this baby till the 4s.......

Yes, priced for perfection means a company has to keep hitting record analyst predictions every quarter or the stock will fall sharply.

In a mature sector like say McDonalds or KO who are long term trenders this is not so bad. Or in an industry with relatively long contracts or a large and stable customer base - utilities or drilling operators.

But consumer electronics and EXPENSIVE consumer electronics in the face of a softening global economy?

You should get rid while you're at a good profit. Just my 2c.

I didn't want to get into an argument with you as you would not comprehend what i mean. To compare AAPL to KO and MCD is pure nonsense. What is their growth rate?

btw, AAPL missed analyst prediction last quarter, how much did we drop?

Could you please explain how a stock like AAPL is priced for perfection
1. Forward PE of 12.36 while the stock has an average PE 26 for the last 3 years. The average S&P PE is at 16.
2. This is a company that is growing 60% YOY. The market is pricing the company as a zero growth stock at this PE.
3. AAPl now has 121Billion of cash. which translate to roughly $120/share. It means that when you buy an AAPL stock at $675, $120 is backed by cold hard cash.
4. Analyst have been predicting a 250m iphone sales for 2013. I wonder if you have any idea how huge is that.
5. As huge as AAPL is right now, AAPL only owns 15% of the smartphone market(not mobile). The potential is huge.
6. China will be the major growth area for AAPL. A deal with China Mobile is anticipated with the launching of iphone 5.

This post has been edited by pinkdevil88: Aug 29 2012, 04:24 AM

I don't want to argue with you but I also don't want new investors to believe your hype and keep buying into AAPL without knowing what they are getting into.

Apple the company is a good solid company with strong past performance.
AAPL the stock is (IMO) overpriced and speculative play with a more than even likelihood of becoming a long-term value trap at current valuation. Any fundamental investor should be wary.

Why the divergence? Let's discuss.

1. Historical. AAPL is at current valuation the most valuable company in the history of the world ever at a time when the S&P is close to its historical highs. If you buy into this stock at this time what you are effectively saying is you believe the most valuable company in human history ever is about to become even more valuable at a time when the global economy is looking at another dip and the S&P is due for a correction.

Does that make sense? Not to me.

2. Analysis. Forward PE is useful when analyzing a stable market segment or a long-term trender. But consumer electronics with a lifespan of only 1-2 years for each product and where trends change like the wind is hardly a stable trend, and hence it's importance is greatly reduced in this case. Whats more AAPL has only really 2 major products, iOS and OSX albeit on several different form functions instead of a basic necessity like oil or food.

Thus, although AAPL's PE is outstanding now it can easily change.

Let's also not forget their greatly limited product range - they have maybe 3-4 (max) product launches (Mac/iphone/iPad/AppleTV) per anum. If one of those products fail it would have a severe impact on financials and thus PE.

3. Margins. AAPL is so succesful despite its tiny share of the PC and smartphone market due to its high margins - it is able to make sucke- errr consumers pay over the odds for its electronics. This success is admirable.

However the world is slowly descending into an economic recession plus additional competitors are giving added pressure to iDevices on all fronts from Windows 8, Android, WP8.

So to meet analysts predictions, AAPL needs not only to grow its market share in a competitive environment but also maintain its sky-high margins in the face of a global economic downturn. Big ask? Yes.

4. Trends. AAPL has met or beaten analysts expectations almost every time in the last 5 years (they only missed twice). This is why the stock has soared to $680. Very good, however, past performance is not always an indicator of the future, despite the past performance being priced in. This is like saying a football team has already won 9/10 of their last matches, hence you now place a bet for them to win the next 9/10 despite the bookies severely cutting the odds in their favor.

In other words - your reward is mostly priced in but yet your risk is not.

5. Buyers. People forget that to increase in value a stock must have (new) buyers at the point you want to sell in the future. Assuming your prediction that AAPL will soar to $1000. The question is, there must be people out there who are willing to pay $1000 in the near future (2-3 years) for a single unit of Apple stock? Why would they do so, presumably because they must see an upside to $1100++? Bear in mind that AAPL's dividend is extremely insignificant.

Thus you are pre-supposing that at some time in the future, the most valuable company in the world right now will presumably double in value to just to double your initial investment of $500++.

That is a lot of presumptions.

It is clear that you have no understanding about the company. I suggest you read the company financial reports and look at their growth rate and earnings(something you did not dare to touch on). I am not going to comment further. I rest my case. I will let the share price do the talking.

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Added on August 29, 2012, 6:15 pmYou do not even understand what is a forward PE.

This one is classic.

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Added on August 29, 2012, 6:22 pmIf the world most valuable company continue to grow and double the earnings, is it going to be more valuable? Of course it is. Make sense to you? I suggest you look at the company earnings and growth rate instead of giving unsubstantiated arguments here.

This post has been edited by pinkdevil88: Aug 29 2012, 06:22 PM

Past performance is not an indication of future achievement.

Apple's growth rate has been phenomenal. BUT you did not buy the share 5 years ago you bought it now. Expecting the company to maintain a similar growth rate is not only highly optimistic it is not even logical.

Especially when said company already has the largest market capitalization in history

LOL you read some analyst report and thought you were smart?
Forward PE = based on projected earnings.

ie, if the projected earnings are off, the actual PE is in reality higher.

Now, basing stock picks solely on analyst forward PE and not fundamentals, THAT's the classic.

Ok kid, you can keep betting on Apple to continue its unprecedented run beating the odds and to "double earnings" in spite of the global slowdown.
Just don't pretend you are investing on fundamentals - call it what it is: speculation.

I did my AAPL earnings model myself. Check my previous post. I posted the ER prediction for last two quarters. Let's just assume AAPL stop growing, how are you going to value the company? with over 120B in cash and a 16 TTM PE. do you think this is a fair valuation?

Buying AAPL is speculation? This would be the biggest joke of the year. In fact buying NOK is speculation, the company will not make any profit for the coming year and you are just banking on the windows phone hype. You need the company to turnaround to make a profit. Though the only thing you can argue is the company patents is worth much more than the market cap.

Not going to reply anymore as you clearly did not understand the company financials. Wait till Feb 2013, that is the biggest ER you will ever see for AAPL, we shall see what is the effect on the share price by then.

Absolutely buying NOK is speculation - and I have never claimed otherwise.

The difference between us? I am buying NOK with eyes open as a speculative turnaround trade while you (if you can be believed) are buying a speculative permabull trade as a fundamental portion of your portfolio. That makes one of us delusional. Guess who.

Before you tout the old 120B of cash blah blah, remember, that:

AAPL is trading 6 times NBV while PSR is only 1.6 (just barely positive above the margin of 1.5).

To put those numbers in perspective, to reach your touted $1000 share price (market cap: USD$1T):

To maintain the same NBV & PSR ratio, AAPL will need to double its net book value while annual revenue will need to grow by another 70% minimum.

All this while already being the most valuable company in history.

Logical? Well I suppose miracles do happen.........

Buying anything on Wallstreet is speculation.. and that's nothing wrong with that. We're all speculating anyway to make money but AAPL fanboy seems to be really delirious permabull - pounding the table all the time, keep BUY'ing when the market is already at 52 weeks high - hoping to score double.

Like I've said earlier this week, I don't expect this AAPL fruit to keep flying despite their win from Samsung. Turns out to be correct. It's basically flat instead of the permabull called for hitting $700 by end of the week.
Thanks for buying those calls..they will likely expire worthless by tonight.

Bears make money, Bulls make money, Pigs get slaughtered........

http://blogs.cfainstitute.org/insideinvest...uation-matters/

A very good read that pretty sum up my ideas - valuation matters.

This post has been edited by pinkdevil88: Sep 3 2012, 12:37 AM