QUOTE(danmooncake @ Jun 24 2013, 12:34 PM)
Aha.. I see. Yes, the (bond) interest rate is fixed and the investor will get what he/she invested at maturity but the issue is as interest rate rises, the bond value goes down. If the investor does not hold the bond till maturity, he/she decides to sell it, then they'll lose money -that's why bond holders now are nervous.
The author of the article is implying that AAPL knows about the rising interests therefore short sell its own bond (which it already has a fix interest at time of sale) and take the profits to buy short term higher interest securities. I am not sure if AAPL plans to do that but it's just so happen coincidentally Fed plans to 'taper' down next year news got the bond bears excited.
AAPL may or may not be able to take advantage of this but the fact is AAPL already got more than 100 blns in long term investments outside USA which it already accumulated more than the interests it's paying for bond holders. I don't think this is a big deal.
Share prices move only when there is game changer product.. now everyone wants to know what next big thing coming out from AAPL lab.
Now I understand. Thanks!
Ya, this is not a big thing for Apple. Just that with this, bulls are convinced that Apple has some pretty smart management teams, which is essential for a company to be defined as "good".
As some disappointment from Galaxy S4 already speaks for itself that continue innovation is very tough to maintain, when the focus switch back to realistic sales numbers and earnings instead of conceptual market share and leaderships, share price performance may return. I mean middle class is growing fast, as long as earnings is good and sales is strong, there is no need to fear of losing some market share. And the next big thing, none of the companies, including Samsung, are visible to us for now.
Jun 21 2013, 03:19 AM
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