Rotten apple and Twitter's silence – buying oppotunity

GA

I used to own 100 shares of Apple pre-split. It was pretty sweet as they were paying 3% dividend, had I kept my shares my YOC would have been 5% by now. I’m not regretting the sales as I sold AAPL to fund my 4-plex, cashing out for  a lovely profit. My fidelity S&P 500 index fund on my 401k account own tons of Apple. There are about 5-10 companies that represent 17% of the S&P, and Apple is one of them. Now, I don’t wish anything bad to go against $AAPL, but it is kind of inevitable.

1. China buying is sinking.

2. I look around at the lunch table at my work, 100% of them are playing around with an Apple iPhone

3. 3/4 own an apple computer or iPad

What are these signals are telling me it’s a blessing and a curse for making products that lasts. People are sastified with what they have. Apple hasn’t innovated enough. Touch screen computers have been out for 5 years, 4K techno has been out for 3 years, iPad Pro is not pro, etc. Apple hasn’t innovating. they haven’t make any strategic buys. If you can’t innovated, then you need to buy other people innovation. Sitting on $230B of cash and they haven’t unload any. 

  • The biggest limitation is the cash is OVERSEA. If Apple was to bring the cash back, it’s will be worth $150B.
  • My bet is Tim Cook still want to sell bond to wait for the new president to restructure the corporate tax system allowing company like Apple to bring the cash back with not as much tax like right now. 
  • In the meanwhile, aaple will face head wind as they can’t just whip out more bond. 

Anyhow, if everything go to hell. Apple might come down to $75-85, it would be an attractive buy. This level is plausible because Apple might be forced to pull out of China as Beijing is mouth is stuff with money that they will not say anything to protect intellectual property. Letting homegrown company steal Apple technology and block Apple service in the case of iTunes and iBook.

I’m building my cash now, but if it does come down to pre-China level $75, I’ll pick some Apple and take a bite out of it. 🙂

Take a look at a “knock off” brand that have 4x specs as Apple:

17x-2-980x682

**Acer Predator Specs, Acer annouced to be release in June** Priced at $2799

17″, 2.7GHz Intel Core i7-6820HK

RAM can be configured up to 64GB, and its storage potential is immense too. The Predator 17X can fit up to three SSDs and a 1TB or 2TB hard drive. What I don’t yet know is how easy it will be to add drives to the Predator 17X. After all, while the price of the laptop in a standard configuration is imposing, one with three SSDs is going to be borderline ridiculous.

The Acer Predator 17X has a 17.3-inch matt IPS screen, which can be configured for either 1080p or (no doubt at great expense) 4K (3840×2160). This is one of the only laptops with enough graphics horsepower to justify a 4K resolution screen. Even an Nvidia GTX 980M is best kept running a 1080p display when playing demanding games.

Take a look at the macbook Pro 15″ with the strongest specs, priced at $3200

15-inch MacBook Pro with Retina display

  • 2.8GHz Quad-core Intel Core i7, Turbo Boost up to 4.0GHz
  • 16GB 1600MHz DDR3L SDRAM
  • 1TB PCIe-based Flash Storage
  • Intel Iris Pro Graphics + AMD Radeon R9 M370X with 2GB GDDR5 memory
  • Force Touch trackpad
  • Backlit Keyboard (English) & User’s Guide

The newest announce a week ago, didn’t have nearly the specs, so I didn’t use that. You see, they went backward in specs, even with their newly announce products? What kind of marketing is it?

Twitter is a strange case. They stopped innovating. The platform limit to 144 characters, movies and writings were talking about it, then they change it – stupid. Lost their ID. They could have scoup something up like Reddit or a journal website or empennage WordPress or blogspot to give users a more interactive. Like Facebook with whatapp. Anyhow, I believe more buys are coming soon. Since I joined Twitter 1/2 of my traffic is coming from Twitter, so I know it’s very effective as an advertiser. I’m putting an order to buy Twitter after the blood shed is done.

What do you think about these two prospects? What are your buys in this all time high stock market?

GA

5 Comments

    • Yes, I had a Twitter account for a long time, but never really use it. Then one day, I decided to use it for my blog. I see how other people retwitting, and promoting each other, I joined the force. I retwitted posts from people in my circle, started to interact more. Having “Twitter conversation” 🙂 somehow it all gained a lot of traction. Within a few months, I had close to 300 followers. 🙂 I would have had more if I try to get more followers. 🙂

      I saw you’re on Twitter too, start using it and see your stats go up. 🙂

  1. I get what youre saying and I dont disagree. The iphone, ipod, app store, itunes…. all were done beautifully. Now the next step for Apple is not clear. As you say, they have a ton of cash, they have been incremently improving their products, but not mind shattering. People went from BIG cell phones to tiny phones and now they want big again! lol. I still hold AAPL long term as I think they have the means to do something big in the next several years (means = intelligent staff + cash)

  2. Twitter has never figured out a monetization strategy that offsets expenses. I’d personally stay away from this stock. I think Apple is a great buy today at $92. But, the market will freak out for a while, so you could see a price in the $80’s. I’ll be buying alongside you if this happens.

    • Twitter is struggling I agree, but you can see Obama and trump use it to their advantage which can draw a lot of attention.free pr for Twitter. 🙂 they might have to merge with GoPro at some point. Twitter need contents, and GoPro need a sharing platform. Win-win. 🙂

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