link
stringlengths 48
160
| title
stringlengths 24
140
| snippet
stringlengths 73
167
| date
stringlengths 11
12
| source
stringlengths 3
28
| text
stringlengths 83
482k
| stock
stringclasses 6
values | price
float64 129
425
|
|---|---|---|---|---|---|---|---|
https://www.marketwatch.com/story/apple-buys-a-lot-of-stock-high-then-stops-buying-low-2019-01-31 | Apple buys a lot of stock high, then stops buying low | Referenced Symbols ; AAPL. -0.59% ; LITE. +2.48% ; QRVO. +0.11% ; AMSSY.
-3.75% ; AMS. +0.50%. | Feb 2, 2019 | MarketWatch | Apple Inc. remained aggressive in buying back its stock when momentum was strong, and prices held above the $200 mark, but when the going got tough for investors, Apple was nowhere to be found.
In a filing with the Securities and Exchange Commission, the technology giant disclosed that it spent $8.24 billion repurchasing 38,024,000 shares during its fiscal first quarter ended Dec. 29, at what amounted to a weighted average price of $216.61.
That compares with the $19.44 billion Apple spent to buy back 92,463,000 shares, at a weighted average price of $210.32, during the sequential September quarter.
Apple
AAPL,
What might disappoint some investors, who may have been banking on continued large share buybacks for support, is the last close above $200 for Apple’s stock was Nov. 9.
On Nov. 12, the stock tumbled 5%, after Lumentum Holdings Inc.
LITE,
Apple’s stock continued to slide the rest of November, as a number of other Apple suppliers, such as Qorvo Inc.
QRVO,
Then from Dec. 2 to Dec. 29, when stock tumbled 12% during the month, and closed at a 17-month low of $146.83 on Dec. 24, there were zero shares repurchased.
Since then, the stock closed at a fresh 21-month low of $142.19 on Jan. 3, after Apple cut its holiday sales forecast, before recovering.
On the post-earnings conference call with analysts after Tuesday’s close, Morgan Stanley analyst Katy Huberty asked if the “weaker quarter” was one of the reasons the company bought back so many fewer shares during the December quarter.
Chief Financial Officer Luca Maestri responded by saying Apple always strives to execute share repurchases “in an efficient, effective, I would say disciplined manner,” taking into account overall market conditions, according to a transcript provided by FactSet. “So that’s what we did during the course of the December quarter.”
Does that mean Maestri believed Apple was being “effective” and “disciplined” by buying high, and not buying low?
Although the stock has run up 17% from its Jan. 3 closing low, helped by an upbeat earnings report, it was still 23% below the price Apple paid last quarter. That implies those shares would now be worth nearly $2 billion less. Read a recap of the live blog of Apple’s earnings call.
Including the shares repurchased the previous quarter, Apple bought 130,487,000 shares at a weighted average price of $212.15, which would be worth about $6 billion less at current prices.
Apple stock has lost 0.8% over the past 12 months, while the Nasdaq Composite Index
COMP, | AAPL | 185.55 |
https://seekingalpha.com/article/4237892-apple-is-market-big-enough | Apple: Is Any Market Big Enough? (NASDAQ:AAPL) | When Apple (NASDAQ:AAPL) hit the $1 trillion level at the end of 2018, I
showed my skepticism toward a few of my colleagues and recommended to
either hedge... | Feb 4, 2019 | Seeking Alpha | Apple: Is Any Market Big Enough?
Summary
- Having $240 billion in cash doesn't mean that they can turn that money into profitable growth.
- A quick view of Apple's business segments and their fundamentals show that they lost some of their premium appeal over the years.
- Let us talk about two scenarios, translate one of them into numbers and analyze the value per share depending on the assumptions we made.
Introduction
When Apple (NASDAQ:AAPL) hit the $1 trillion level at the end of 2018, I showed my skepticism toward a few of my colleagues and recommended to either hedge their investment by buying an appropriate short or by taking in some of their profits. I based my skepticism on a historical high P/E-ratio, diverging top-line and bottom-line growth, and the recent flood of new premium smartphone and laptop devices.
Source: www.news.com.au
Since the peak in 2018 Apple's share price plummeted to approximately $750 billion. The main concern that investors, me including, have is that Apple has been unable to diversify its business sufficiently and there's no counterbalance to their iPhone segment. Apple's valuation metrics don't look bad in a historical comparison, but investors also should keep an eye on their overall business performance.
In this article, we will critically examine two scenarios of how Apple's business will continue to develop depending on the actions they are going to take. The first scenario assumes stagnating product sales and fast accelerating service revenue of 20% YoY and how it will influence revenue growth and share price. The second scenario analyzes an opportunity Apple currently has but is not fully exploiting.
Apple's Business Segments
The following section is a quick summary of Apple's business segments and their influence on top-line growth. For experienced Apple investors, I would recommend jumping to the "Fundamental Analysis."
Source: Apple Annual Report 2011-2018
In the last seven years, Apple's main growth engine has been the iPhone as one can see in the graph above. iPhone sales increased drastically from $45 billion in 2011 to $165 billion in 2018 - that's 20% YoY growth! The second biggest business segment is "Services" with sales of nearly $40 billion in 2018.
In 2018 the dependency of Apple's growth to iPhone sales was 67%. For 2017, 2016, and 2015 the dependencies were 28%, 63%, and 91%, respectively. For the years before 2015, the dependency was only between 50% and 55%. The trend over the last seven years has been that iPhone sales contribution to overall growth increased from 50% in 2012 to 67% in 2018.
Source: Apple Annual Reports 2011-2018
The unit sales strengthen our observation. iPhone unit sales increased from 70 million in 2011 to approximately 220 million in 2018. iPad unit sales increased slightly from 2011 and Mac sales stayed pretty much flat. The graph of the iPhone unit sales looks like it reached saturation in 2017/2018 and I can think of a few reasons that iPhone sales will stagnate or even decrease in the next few years.
Fundamental Analysis
We will analyze Apple's numbers and take a look at key ratios and how they evolved over the last 5-7 years.
Source: Apple Annual Report 2012-2018
Next, to the absolute sales number, we have to look at the profitability ratios.
Source: Apple Annual Reports 2012-2018
Revenue increased with a CAGR of 7.85%, but Apple's margins weakened over the last few years. The increase of Apple's net margin in 2018 came from the tax reduction and did not result from improved operating performance.
Apple was able to increase their operating margin from about 10% in 2006 to approximately 35% in mid 2012, but from that peak in 2012, the operating margin has been decreasing to a current level of 26.7%.
Source: Apple Annual Reports
Apple is less and less able to provide a good return on their increasing assets. Assets consist of inventories, PP&E, and other non-current assets. The compounded annual growth rates of their PP&E is 16% while their compounded annual growth rate of their net income is only 5.21% in the same time frame. Return on asset (RoA) decreased from 125% in 2013 to 90% in 2018. RoA shows that even if Apple is investing in their business, the return that they can get on those assets is decreasing with time.
Source: Apple Annual Reports and Author's Calculations
The current ratio tells us if a company can pay off its short-term obligations and in the case of Apple that should be no problem. The interesting point is that the current ratio decreased over the last seven years, which means that their liabilities increased faster than their assets. Apple's total liabilities increased with 21% CAGR and their total assets increased by 10% CAGR. In the time of ultra-low interest rates, it makes sense to finance their business with cheap long-term debt instead of new equity.
This finding translates into their return on equity and gearing ratio. Apple returned $238 billion in the last six years to shareholders by buying back their common stock. In the same time frame, they paid $29 billion in the form of dividends to their shareholders. The gearing ratio (financial leverage) increased from 13% in 2013 to 107% in 2018. Their emphasis to finance their business with debt has diluted their return on equity, which rose from 30% in 2013 to 56% in 2018.
Source: Apple Annual Report
Apple reduced outstanding shares by nearly 24% in the last seven years, which is quite impressive considering that they are one of the most valuable companies in the world. In the same time frame, Microsoft (MSFT) only bought back 8.4% of shares. Buying back tremendous amounts of shares can be explained in various ways. From doing shareholders a favor because the business is running great to having no practical means to expand the business or inflating its valuation metrics to boost the share price.
Scenario Analysis
Before we get to the different scenarios let us sum up all the things we learned so far from our observations of Apple's business:
- iPhone sales make up 63% of total revenue.
- Services correspond with iPhone sales and can be only partially accounted for as an independent business segment.
- Sales of Apple's Mac and iPad stagnated or increased only minimally over the last seven years, contributing to only 17% of Apple's revenue in 2018.
- Apple has not been able to diversify its business away from the iPhone.
- Strong competition in the premium smartphone market requires Apple to increase marketing and sales efforts.
- Technological advances in smartphones have no substantial effect on daily smartphone usage anymore.
- Strong competition in the premium laptop segment with a comparable build and hardware quality.
- Apple is building its service segment with the possible intentions to grab a considerable market share in the content delivery industry or healthcare industry.
- Apple's HomeKit business contains their entry to the IoT market and their expertise in user experience, and device connectivity may be their lever to grab a substantial market share.
Scenario 1 - iPhone business stagnates - Service business increases 20% YoY
Let us get to our first scenario where we assume that iPhone sales will continue to stagnate while service revenue will increase 20% YoY for the next five years.
Source: Authors Calculations
If service revenue increases and hardware revenue decreases, I will tilt the operating margins for the estimated years in favor of Apple and use an operating margin of 28.5%, which is slightly above the five-year average.
Source: Author's Calculations
These are our numbers for the projected five-year time frame. The revenue growth rate is increasing every year because we used 20% YoY growth of service revenues. The influence of services in the first three years is well below 4% on total revenue and only after the fifth year service revenue will improve total revenue by a bit over 5%. Using five-year averages to calculate the change in working capital and adjustments in non-cash charges, we get our unlevered free cash flow.
Source: Author's Calculations
Now, all that's left for our first scenario are market capitalization, weighted average cost of capital, and the EBITDA-multiple.
Source: Author's Calculations
Using the terminal EBITDA multiple-method and some variations in the WACC and five different multiples, we can create an array of possible values for our Apple shares:
The results of the Scenario 1 analysis are sobering, with a current value per share of $166 there's minimal upside potential calculated into the shares. We used a very favorable outcome for Apple's service revenue with 20% YoY growth while the Apple product segment is just stagnating. To me, these two segments correlate, and Apple won't be able to accomplish a YoY of 20% with stagnating or deteriorating product sales.
Scenario 2 - Apple in the IoT business
After reading through Apple news and analysis all around the company there seem to be a lot of theories about the next "big thing" that Apple will capture. The main opportunities each one of us will read about when searching for Apple are entertainment or content, healthcare, and developing new pricing strategies in emerging markets to capture market share. In the second scenario, I want to introduce a new possibility for Apple based on the things that they are good at.
Internet of Things. These three words are a few of the most widely discussed words of the past ten years, and they appear daily in the news. Apple's strength lays not only in the great hardware they create but also the software that runs flawlessly on the hardware, the device interconnectivity, and ease of use.
An Example:
I recently switched from a Mac back to a Windows-PC, and I immediately realized that even if the hardware is 10 times better, the whole experience on the Windows machine is not as smooth as on the Mac. Just the experience of scrolling in my Google Chrome browser on my Windows machine feels worse than on my old Mac, and that was a 2011 MacBook Air with 4 GB ram. I connected a Microsoft Arc mouse to my Windows Laptop and got quite frustrated because it just doesn't feel and connect as smooth as the Apple Magic mouse that I used on my Mac. Then I wanted to connect some Bluetooth earphones to my laptop and after a while disconnect them from my laptop and reconnect them to my smartphone. This was rather frustrating because my laptop wanted to reconnect to the earphones and I had to turn off the Bluetooth of my laptop.
I think you got my point. I'm not trying to badmouth Windows machines. I'm even using one and still quite happy about the switch from Apple to Windows, based on other reasons. What I wanted to highlight is the specific strength of Apple. Smooth connectivity and user experience. I think that in the next few years this strength of Apple will play a major role for IoT devices and I also believe that Apple can leverage their strength and enter a whole new business segment with their already strong ecosystem.
If Apple starts to leverage their expertise on connectivity and user experience by marketing it stronger to manufacturers and developers they could leverage their strengths, improve their sales in "remote control" products like the iPad, and create a whole new business segment.
Apple already is offering developers an MFi licensing program that enables others to create products that were specially made for iPad, iPhone (that's where the MFi comes from) but I don't see the drive to use this strength and build on top of that. Apple might not be able to leverage this segment well enough to the extent necessary to make an impact on revenue and profitability. Apple can undoubtedly grow their sales, but that's not enough in the long term. To leverage the IoT business segment they have to intelligently open up their ecosystem and invest into the right places with the right people.
Conclusion
A lot of times, people don't know what they want until you show it to them.
- Steve Jobs -
I like this quote because it's one of the pillars on which Steve Jobs built the success of Apple. I recently read a lot of articles that explain how Apple should go with the flow, invest into growth like content delivery or the healthcare industry or change pricing to capture emerging markets. But that's not Apple. The founders of Apple created a culture that does not need to go with the flow. They know that it takes time until customers appreciate the simple things and I think that they should continue to build on that culture.
In the future, I don't think that we will use smartphones like they are today but shift to a combination of wearables like the Apple Watch together with earphones like the AirPods for our day-to-day use. I think Apple is well-positioned to become a major provider for those wearables, but they have to put more emphasis on that product line and Siri to make it work, more natural, and easy to use.
Apple, at its current valuation and its current business model, is not a buy. On a scale from 0 to 10 where 10 is definite buy recommendation and 0 a definite sell recommendation, I would value Apple's shares as 3.5. I base this valuation on too much dependency on iPhone sales and weak Mac and iPad sales. Apple is missing something, and as long as I don't see a clear idea of what the executives and managers are trying to accomplish I won't feel comfortable to buy shares as they are currently valued.
I always welcome constructive criticism and open discussions. Please feel free to comment or PM me about my calculations and/or sources that I use in my articles.
Author note: Seeking Alpha offers me the opportunity to articulate my thoughts and share them with other investors to get feedback and create constructive discussions about anything I say. I am not a financial advisor, and the information provided in my articles should not be used to make investment choices. Due diligence and/or consultation with your investment adviser should be undertaken before making any financial decisions, as these decisions are an individual's responsibility.
This article was written by
Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (52)
2. Apple has not lost their premium appeal. We don’t know how many iPhone units they sold last quarter but several tracking companies have estimated that they sold 66-72 million units last quarter, based on activation figures, despite a slump in China sales due to sociopolitical factors. I suspect that the reason for the 15% decline global iPhone revenues is because they have been selling more old iPhone models (6S, 7, and 8’s), as well as refurbished units. This reduced average sales prices. Apple tried a new sales strategy in Q1’19, to increase market share, by putting older models and refurbished phones on sale. They started by introducing the new and most expensive models (XS, XSM) first, then the less expensive new model (XR), and then the older models (6S, 7, 8), and then the refurbished older models. While this sold more units, it brought in less revenues and competed with new Apple iPhones. I suspect that this was a sales strategy advocated by Angela Ahrendt and one of the reasons why she is leaving Apple.
3. It is not true that Apple is unable to provide an increasing return on their increasing assets. They have been making more and more money every year. However, expectations for Apple to grow at >20% in all its segments are unrealistic. All their new products are growing at annual double digit percentage increase, i.e. Watch, AirPods, Homepods, and Services. Until this past quarter, their iPhone revenues have been growing at 15% or higher rates. I don’t know why everybody is harping about unit sales. Revenue increase is the only thing that matters and Q1’19 was the first year in a decade where Apple has had a revenue decline. A careful look at that decline shows that it was mostly (80%) due to a slump in China sales.The repeated claims that Apple has no room to grow are simply not true. In emerging markets, there is plenty of room for growth. Apple also can take market share from Android me-too smartphones made by Korean and Chinese companies. Apple dominates the watch market, selling more watches than Switzerland, and making more profit from their Watches than all the watch companies combined. Apple’s annual revenue growth rate for wearables exceeds 30%.Times are a’changing, however. The US/China trade war now poses a substantial risk to Apple’s manufacturing strategy. Apple must distribute and reduce that risk. Somehow, Apple dodged the bullets for over a year and was lucky that its products were not subject to tariffs in the United States or China. To be fair, this risk was not apparent 2 years ago. Who could have believed back then that we would have a president that would start a unilateral trade war with all our trading partners around the world, imposing 25% tariffs on steel, electronic, and other products? Until these risks are mitigated, investors are unlikely to push Apple stock prices back to $230 in the next 2 quarters. But eventually Apple do so. When Apple returns, it will do so with vengeance. No company in the world or coming decades will be able to challenge Apple’s pre-eminent position as the most profitable computer, smartphone, smartwatch, earphone, and smart speaker maker. Over the long term, Apple stocks will increase more than the other darlings of Wall Street (Amazon, Google, Facebook).The privacy issues of internet will grow. Apple is the only company to address both privacy and security with powerful combination of hardware and software solutions that no other manufacturer has. The secure enclave is Tim Cook’s major contribution to Apple besides supply chain management. Lack of privacy is in the DNA of Android just as security and privacy is in the DNA of Apple products. A zebra can’t change its stripes, just hide them. The business model of Google and Facebook is invasion of people’s privacy and selling their private information. They don’t know how to do it any other way. Their first goal is to find out information about their clients. To make money, they must sell that information. That information will be misused and abused, not just by Google but by the companies and governments they sell that the information to. I predict that the privacy issue will cause the downfall of Android. Apple is thus a good long term buy. People who have Apple stock should hold them. People who want to buy Apple stock should buy on stock dips. The time to buy was two weeks ago when Apple shares were 142. At 172, the time to buy has passed. The next time to buy is just before the Trump administration announces a US/China trade deal. The next time after that is a court victory over Qualcomm. By the way, Apple won a victory this week because the judge decided that Qualcomm cannot seek damages for Apple activities before the court case.
Thank you for your detailed comment. Let me try to comment appropriately:
1. What I tried to say with the cash pile is that the amount of cash they had and have on hand did not show any major changes. Sure, they are returning a lot to investors and reinvesting tons of money into their company but when you are the size of Apple what should you or can you invest in to increase your $250billion revenue to $300billion or $350 billion? What I tried to stress is that this undertaking is not an easy one.
2. Hmm maybe we just have different opinions on the premium appeal but let me try to explain what I mean. Here I compare Apple directly with their competitors who are creating products that come very close to Apple's workmanship. Sure, there is the software that distinguishes the iPhone from their competitors, and I am not trying to reduce the benefit of their iOS against Android (great trash management, durable, crash resistant...). Apple's competitors recreated a lot of their build quality, and that is visible now.
3. In comparison to the consumer electronics industry, Apple is far ahead when it comes to return on assets. What I tried to emphasize is that their return on assets is decreasing which is visible in the graph provided and an indication that they continuous investments into their business are not as fruitful as in the past. I agree to a few of your other comments like Apple's emphasis on privacy and that their business model is about great products and not the data of their customers. I think that will a key changer in the future when people become more aware of their personal data.
I would buy their stock again if I see a good entry point because if anything, their stock will at least cover inflation and grant the investor security in their portfolio and continue to grow at a modest rate.
All streaming services offer everything, I see little differentiation between the likes of Spotify, Amazon and Apple Music, this will limit margins and moat for Apple. - Video: Apple will enter this in CY2019 in a major revamp as we all know (add own content). However, the long-term economics of NFLX show that this is expensive and may not bring the margins Apple shareholders are accustomed too - also, Apple's services are not as device-agnostic as those of NFLX, this will limit growth beyond the Apple eco-system.- Gaming. Apple could launch a streaming gaming service (as Sony and others did years ago), but once again the competition is already there...
I can increase the margins for the 4th and 5th year and update the DCF analysis. I would post the results here in the results if you are interested.
If desired I can increase the margins for those years and update the projected share price value here in the comments.
2. Borrowing to fund share buybacks (that are accretive to EPS), because their was no foreign money repatriation conclusion yet.
3. They wanted to reward shareholders and buy the stock back cheap, both of which they did.There is no Issue having $100 Billion in debt, when you also make $55-60 Billion per year in net profit, and $230 Billion in cash. Their debt shouldn't be mischaracterized. | AAPL | 185.55 |
https://www.foxbusiness.com/technology/microsoft-fends-off-apple-remains-most-valuable-us-company | Microsoft fends off Apple, remains most valuable US company | MICROSOFT CORP. 333.56, -4.49, -1.33%. AAPL, APPLE INC. 183.96, -1.05,
-0.57%. AMZN, AMAZON... | Feb 4, 2019 | Fox Business | Microsoft fends off Apple, remains most valuable US company
Microsoft retained its title as the most valuable publicly traded U.S. company on Monday despite a surge in Apple shares that briefly saw the iPhone maker overtake its tech rival during the trading session.
|Ticker||Security||Last||Change||Change %|
|MSFT||MICROSOFT CORP.||335.01||-4.70||-1.38%|
|AAPL||APPLE INC.||186.68||-0.32||-0.17%|
|AMZN||AMAZON.COM INC.||129.27||-0.88||-0.68%|
|GOOGL||ALPHABET INC.||122.34||-0.81||-0.66%|
|BRK.B||BERKSHIRE HATHAWAY INC.||335.33||-1.61||-0.48%|
Microsoft closed with a market capitalization of $811.3 billion after shares rose nearly 3 percent in trading on Monday, according to FactSet data. Apple finished the day in second place with a valuation of $807.5 billion.
Apple shares are up more than 10 percent since last week, when the company reported first-quarter results that were stronger than Wall Street expected. The company has been under pressure in recent months after it warned that revenue would fall short of projections amid slowing demand for iPhones and economic factors in emerging markets, especially China. Apple briefly overtook Microsoft before giving back the lead.
E-commerce giant Amazon closed as Wall Street’s third-most valuable company, with a market cap of $802.3 billion. Shares have fallen in recent days after Amazon provided soft first-quarter revenue guidance, even as the company reported more than $200 billion in revenue in fiscal 2018.
Google parent Alphabet, which reported earnings on Monday, ranked fourth with a valuation of $790.8 billion. Warren Buffett’s Berkshire Hathaway rounded out the top five with a $512.9 billion valuation for its Class B stock.
CLICK HERE TO GET THE FOX BUSINESS APP
Microsoft, Apple and Amazon have battled for the top spot in recent months amid overall pressure on tech stocks. U.S. equities markets were up slightly in trading Monday. | AAPL | 185.55 |
https://wccftech.com/softbank-bullish-on-china-considering-1-5-billion-investment-in-guazi/ | SoftBank Bullish on China – Considering $1.5 Billion Investment in Guazi | The slowing Chinese economy has been reported by several companies as being
the cause of slashed earnings targets with both Apple (covered here
NASDAQ:AAPL)... | Feb 2, 2019 | Wccftech | This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Although there are rumblings that the global economy may be on the brink of starting to struggle, led by China – US trade war, US government shutdown, slow Chinese economic growth and Brexit among other themes, Softbank (TYO:9984) continues looking for new tech companies to invest in at pace with Chinese used car trading website Guazi.com currently the target of its affections.
The slowing Chinese economy has been reported by several companies as being the cause of slashed earnings targets with both Apple (covered here NASDAQ:AAPL) and NVIDIA (covered here NASDAQ:NVDA) feeling the brunt of the Chinese slowdown this quarter but there do seem to be a few drivers behind SoftBank’s continued interest in Chinese technology companies.
First up, a “slowdown” in Chinese growth now has the country’s GDP growing at an annualised 6.5%, still significantly faster than most western nations. Granted, these are official figures which are doubtless massaged somewhat but the overall trend is still significantly positive, albeit shrinking (China was up around 10%/year until 2012 and since then has been on a trajectory from 8% down to the current 6.5%). The Chinese almost 1.4 billion population still has significant growth left to give with GDP per capita at a little under $9,000/year).
Secondly, there are (admittedly mixed) messages of positivity emanating from both Beijing and Washington D.C with regards to ongoing negotiations to end the trade dispute before the more punitive 25% tariffs by the US kick in on the 1st of March, which would inevitably lead to more damage to prospects for renewed economic growth should they come about.
Third, much of China is still without automotive transportation. 2018 estimates put the number of cars in the country at approximately 240 million. Given that about 65% of the population is between 16 and 60 that means that a staggering 650 million people of driving age don’t have a car (rough number given that driving age is 18). Whatever way you cut it, that’s one hell of a second hand market that cars will be filtering down through in the coming decades.
Couple that with the declining new car sales numbers of the world’s number one car market and it makes for tantalising reading for SoftBank. Chinese used car sales are continuing to increase with an 11.5% jump in 2018 from 2017. Additional Chinese governmental incentives to both loosen regulatory restrictions on selling used cars as well as targeted subsidies to boost rural sales will also help.
Guazi.com – SoftBank Sets the Scene
According to the usual “people familiar with the matter”, SoftBank has also been in talks with Guazi competitor Renrenche which is funded in part by Chinese Uber equivalent Didi Chuxing. Given that Softbank owns a stake in Didi, it must have seen something it didn’t like in Renrenche for it to turn its back on the firm and pursue Guazi. It’s also interesting to note that SoftBank’s Chinese competitor (in some ways) Tencent (HKG:0700) currently has a stake in both Guazi and Renrenche.
The talks suggest that the $1.5 billion boost to Guazi would value the firm at approximately $8.5 billion, a significant boost on the $6.6 billion it was valued at during it fund raise just a few short months ago in November. SoftBank still has its ambitions of course and a sizeable coffer with which to pursue long term investments. Warren Buffett’s preferred holding period of “forever” is a useful perspective to look at though when dealing with the kinds of investments that SoftBank is making so short term market hits due to economic cycle and other events are less likely to worry them. With new car sales in China falling, the used car market will mature and given the commission charged by Guazi to sellers, SoftBank appears to think that’s where there is a lot of money to be made as a hedge against its investments in automakers.
Comments | AAPL | 185.55 |
https://appleinsider.com/articles/19/02/01/apple-removes-siri-team-lead-as-part-of-ai-strategy-shift | Apple removes Siri team lead as part of AI strategy shift | AAPL: 187 ( +3.04 ). Toggle navigation Close Nav. AppleInsider Logo · News
· How-Tos. Apple A-Z. AirPods · Apple TV · Apple Watch · HomePod · iPad... | Feb 1, 2019 | AppleInsider | Apple removes Siri team lead as part of AI strategy shift
Apple executive Bill Stasior, who has led the Siri team since joining the company in 2012, has been removed as head of the project in a sweeping strategy shift favoring long-term research over incremental updates, according to a report on Friday.
Citing people familiar with the matter, The Information reports Stasior is no longer in charge of Apple's virtual assistant team, though the executive is still employed at the company. In what capacity Stasior now works is unclear.
Apple SVP of machine learning and AI John Giannendrea reportedly made the decision in an attempt to shift the Siri program toward research and away from minor upgrades typically pushed out in annual releases. Giannandrea is anticipated to start a search for a new head of Siri, the report said, though a timeline for replacement is unknown.
Hired by former Apple executive Scott Forstall to run point on Siri, Stasior was previously attached to Amazon's A9 search arm. During his tenure, Stasior had to manage not only the development of a premiere consumer AI product, but infighting within his own ranks as the project began to focus more intently on search capabilities.
Siri was at one point the focus of late Apple CEO Steve Jobs who, along with Forstall, envisioned a true conversational AI not restricted to web searches and device controls, but something close to human interaction. That vision waned with Jobs' passing and Forstall's ouster.
Stasior's removal as head of Siri comes at a critical point in the voice-enabled assistant's timeline. The first AI assistant to see wide adoption thanks to its inclusion in 2011's iPhone 4S, Siri now sees stiff competition from the likes of Amazon and Google, both of which found great success in building their respective technologies into smart speakers and home appliances. Apple's own foray into the smart speaker space, HomePod, launched to mixed reviews, many of which dinged the device for Siri's comparatively limited feature set.
Apple is now looking to Giannandrea in hopes of pulling ahead in the AI space.
Hired early last year, Giannandrea previously worked on artificial intelligence projects at Google. In December, he was promoted to SVP and put in charge of Apple's AI and Machine Learning programs, including Core ML and Siri.
Apple saw a number of high profile exits under Giannandrea, including the departure Tom Gruber, the last of Siri's co-founders to leave Cupertino. Vipul Ved Prakash, who served as Apple's search lead after his startup Topsy was acquired in 2013, left at around the same time that Gruber retired. | AAPL | 185.55 |
https://seekingalpha.com/article/4255729-apple-think-different-in-terms-of-valuation | Apple: Think Different... In Terms Of Valuation (NASDAQ:AAPL) | Apple: Think Different... In Terms Of Valuation. Apr. 22, 2019 12:54 PM
ETApple Inc. (AAPL)45 Comments 10 Likes. Oleh Kombaiev profile picture. | Apr 22, 2019 | Seeking Alpha | Apple: Think Different... In Terms Of Valuation
Summary
- Revenue is the key driver for Apple’s capitalization growth.
- The deceleration phase has clearly occurred in the life cycle of Apple.
- Depending on the life cycle phase, investors tend to value the company in different ways. So, this characteristic should be used for valuation.
What do you pay attention to first of all when you see the figures of Apple's (NASDAQ:AAPL) or any other company's quarterly reports? Certainly, to the revenue. And then, you probably calculate how the revenue has changed relative to the corresponding quarter a year earlier. In other words, you find out the revenue growth rate.
But, let's look at the revenue dynamics in a different way. And, for this, we are going to calculate not just the rate of its change but also the rate of its change, or simply speaking, acceleration. To do this, let's find the difference between the annual revenue growth rate in this quarter and the revenue growth rate in the quarter a year earlier:
The resulting graph clearly describes the acceleration and deceleration phases in the life cycle of Apple. I also want to note that, judging by the results of the last quarter and forecasts for the next three quarters, the deceleration phase has clearly occurred.
It is logical to assume that, depending on the life cycle phase, investors tend to value the company in different ways. So, this characteristic should be used for valuation.
And now, we'll do the following... Based on the history of the last 10 years, let's build a statistical model that forecasts Apple's capitalization in terms of (1) absolute revenue and (2) acceleration. I do not ask to regard this model as an analogue of the "crystal ball". Treat it as a kind of smart average.
Also note that the model forecasts Apple's capitalization, not share price. Therefore, the result of modeling is not affected by Apple's buyback activity.
Here are the key parameters of the model:
You have to admit that all key model quality assessments are high: R2 = 0.86 and p-value<0.05.
And, here, the model itself:
So, at a glance, the model performs well as a smart average and Apple's current capitalization is rated as overvalued. But, for more clarity, let's look at a few more graphs.
Here is the distribution of deviations of Apple's actual capitalization from the forecasted one:
As we can see, Apple's current capitalization deviates from the balanced state less than the standard deviation, so there is no critical overvaluation.
But now, we'll add Apple's revenue forecast for the next three quarters to the model:
In this case, the balanced level of the company's capitalization within the bounds of the model will drop to $800 bn by the end of the year, which will exceed the border of the standard deviation.
I also want to note one more detail. Considering the history of the deviation of the actual capitalization from the forecasted one, there stands out the fact that during the deceleration growth phase of the revenue growth, the actual capitalization was below the forecasted level. As far as the current deceleration phase is concerned, this rule is not executed for the time being. But how long???
My conclusions
(1) Apple's profitability has not changed considerably for a long time, and therefore, revenue essentially determines all key financial results, which means it is a key driver.
(2) Apple's revenue has entered a slowdown phase ‒ this is an objective fact that cannot be denied and new Apple Services will not have time to influence this in the near future.
(3) Apple's capitalization has no fundamental potential for growth in the offing of the current year.
This article was written by
Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (45)
Of course in this era when everybody with an internet connection thinks they know it all and are locked into a hugbox - well they don't want to hear anybody that contradicts their views or they start seeing conspiracies everywhere.
So lets not pretend they are any better than mistaken experts.
Surprisingly, within ten minutes I was talking to a sales person and some had a new iPad Pro 11 in my hands.
buy the new 5G when it comes out after the bugs are found.
They're losing market share...
They're not growing anymore...Stock and yearly revenue keeps moving up.They've now produced an EKG watch that will continue to grow massively and pretty soon their AR glasses are going to make everyone forget about folding phones all together. But in 5 years from now, people will still be saying the same stuff.
What do you make of that?...signs of plateau phase in the life cycle of Apple.
like Apple so much ! | AAPL | 185.55 |
https://www.fool.com/investing/2019/04/22/3-dividend-stocks-that-should-pay-you-the-rest-of.aspx | 3 Dividend Stocks That Should Pay You the Rest of Your Life | We asked three of our contributors which stocks they think will be the next
century's Dividend Aristocrats, and General Mills (GIS -0.09%), Apple
(AAPL... | Apr 22, 2019 | The Motley Fool | A handful of stocks have paid a dividend for 100 years or more, and those are well into Dividend Aristocrat status -- a title any dividend company would love to have. But the next 50 or 100 years may be dominated by a new generation of aristocrats, and previous ones may not be where investors want to look for stable dividends.
We asked three of our contributors which stocks they think will be the next century's Dividend Aristocrats, and General Mills (GIS 0.03%), Apple (AAPL -0.17%), and Microsoft (MSFT -1.38%) made the top of the list. Two tech stocks, in particular, may sound surprising until we dig deeper into the reason tech is so attractive right now.
A classic packaged-foods play
Leo Sun (General Mills): General Mills, the packaged-foods giant that produces Cheerios, Yoplait, and Haagen-Dazs, has raised its dividend annually for 15 straight years. It spent just 55% of its free cash flow on that dividend over the past 12 months -- which gives it plenty of room for future increases -- and it currently pays a forward yield of 3.8%.
General Mills is a slow-growth company and reported nearly flat organic sales growth over the past year. Many of its classic brands struggled with softer sales as consumers pivoted toward healthier foods.
However, General Mills has offset those declines with three main strategies: acquisitions (including organic-food maker Annie's and premium pet-food maker Blue Buffalo), new variations of classic brands (including Go-Gurt and Yoplait Whips), and price increases. Acquisitions boosted its sales growth as its organic growth stalled out, and price increases offset its slowdown in unit sales.
General Mills' decision to raise prices boosted its gross margin in recent quarters, and its operating margin expanded as it cut costs. By comparison, Kraft Heinz (KHC -0.44%), which faces similar headwinds, slashed its prices to boost sales -- a move that crushed its margins last quarter.
For fiscal 2019, which ends on May 27, General Mills anticipates flat to 1% organic sales growth, 9%-10% constant currency sales growth (fueled by its purchase of Blue Buffalo), and flat to 1% adjusted EPS growth on a constant currency basis. Those growth rates are slow -- but General Mills' stock looks cheap at 15 times forward earnings, and its high yield should limit its downside potential.
Tech's new Dividend Aristocrat
Travis Hoium (Apple): Apple is relatively new to paying dividends, but I think it's positioned to be a long-term Dividend Aristocrat. Not only is it one of only a few technology companies with the scale to compete effectively in the global market, but it's also a cash flow machine.
Apple's business today begins with the iPhone, arguably the most profitable product ever launched. The iPhone is not only highly profitable with each sale, but it also marks the starting point of locking customers into the Apple ecosystem of hardware and software products. The App Store, iTunes, iCloud, Apple Music, and other services add value for consumers, but they make it hard to switch to other devices. From there, iPads, Macs, AirPods, and other products become very attractive, deepening the lock Apple has on consumers.
The business Apple has built ends up being a cash flow machine. Apple generated $62 billion of free cash flow, adding to nearly $250 billion of cash already on the balance sheet.
Technology is sure to change over the next few decades, but Apple has the balance sheet and innovative chops to lead the industry forward. With the cash it's bringing in now and the balance sheet strength no company can match, this is a Dividend Aristocrat for years to come.
Don't underestimate the staying power of this technology bellwether
Todd Campbell (Microsoft): The technology titan was late to embrace the shift from traditional PCs to the internet, but it's made up for lost time. The company's revamped its entire suite of products and services to bring them into the 21st century, and that's translating into significant growth and shareholder returns.
Microsoft's shares have risen about 86% in the past two years because of its pivot to cloud-based solutions and a subscription revenue model. The ability to access its productivity tools online from anywhere has resonated with employers, workers, and gamers. As a result, sales have marched steadily higher.
In its most recently reported quarter, productivity and business processes sales increased 13% to $10.1 billion, intelligent cloud revenue climbed 20% to $9.4 billion, and personal computing sales rose by a solid 7%, despite the ongoing slowing of demand for traditional PCs. In all, Microsoft's sales improved 12% year over year to $32.5 billion, its operating income grew 18% to $10.3 billion, and its adjusted net income increased 14% to $8.6 billion.
Those results are impressive for a company this big, but there's reason to believe its financials will get even better. Its fastest-growing solutions include Office 365, with commercial growth of 34%; LinkedIn, which grew revenue 29%; and Azure, which saw sales increase 76% in the quarter from one year ago. Its Xbox Live subscription service saw year-over-year sales increase 31% last quarter, too.
Since demand for access-anywhere software is likely to grow, not shrink, in the future, I think Microsoft could be a great stock to own in forever-style portfolios.
Times have changed
Even five years ago, you may not have thought technology stocks would offer some of the most stable dividends on the market, but that's where we are today. Apple and Microsoft have such large and powerful positions in the economy that it's hard to imagine they'll slip very far at all. That's why they, along with General Mills, are our top dividend stocks for very, very long-term investors. | AAPL | 185.55 |
https://seekingalpha.com/article/4255620-qualcomm-why-success-story-just-begins | Qualcomm: Why The Success Story Just Begins (NASDAQ ... | Qualcomm: Why The Success Story Just Begins. Apr. 22, 2019 3:34 AM
ETQUALCOMM Incorporated (QCOM)AAPL, INTC, NXPI149 Comments 80 Likes. | Apr 22, 2019 | Seeking Alpha | Qualcomm: Why The Success Story Just Begins
Summary
- Founded in 1985 in San Diego, California, Qualcomm is the world's leading chip designer for wireless technologies including 3G, 4G and 5G.
- Now that the license dispute with Apple has been settled, Qualcomm can focus almost entirely on its operating business.
- The 5G generation in mobile communications is currently in the roll-out phase, so that it can be assumed that profits and cash flows will increase in the foreseeable future.
- Qualcomm has a favourable valuation compared to the peer group and is fundamentally undervalued despite the share price rally due to the Apple settlement.
- In addition, there is a pending share buyback program of around $7.8 billion and the dividend of currently over 3%, which also speak for an attractive shareholder value in the future.
The key to making money in stocks is not to get scared out of them. – Peter Lynch
Founded in 1985 in San Diego, California, Qualcomm (NASDAQ:QCOM) is the world's leading chip designer for wireless technologies, including 3G and 4G/LTE. The company also has ambitions to be the leader in 5G.
The emphasis here is on designer, because unlike traditional chip manufacturers such as Intel (INTC) and Samsung (OTCPK:SSNLF) (OTCPK:SSNNF), Qualcomm does not (yet) have its own manufacturing facilities and has its chips produced by contract manufacturers such as Taiwan Semiconductors (TSM), or provides licenses to produce and use its intellectual property in smartphones, tablets and smartwatches, for example (so-called "fabless production model").
As a sign of its technology leadership, companies that manufacture or use chips in their devices in the above-mentioned mobile communications areas are said to be required to obtain a patent license from Qualcomm. So it's no wonder that Qualcomm's customers include global technology leaders and smartphone manufacturers such as Apple (AAPL), Samsung, Huawei, LG, Oppo, Sony (SNE) and Xiaomi (OTCPK:XIACF) (OTCPK:XIACY). Qualcomm speaks in its Annual Report of over 210 companies using Qualcomm technologies in their products and paying royalties to Qualcomm.
In addition, Qualcomm's Snapdragon LTE modem is widely recognized as the most powerful chip in the LTE market. An attempt by Apple in iPhone 7 production to replace Qualcomm chips with Intel chips to solve its dependency on Qualcomm resulted in performance problems for many iPhones. To avoid this performance problem in its LTE-enabled Apple Watch Series 3, Apple fully relied on Qualcomm's Snapdragon chips.
According to a report published last week by the Washington Post, Apple’s hardware executives used phrases like "the best" to describe Qualcomm’s engineering. Another Apple memo characterizes Qualcomm as having a "unique patent share."
Qualcomm's business consists of the three segments QCT (Qualcomm CDMA Technologies), QTL (Qualcomm Technology Licensing) and QSI (Qualcomm Strategic Initiatives). QCT and QTL are the revenue generating segments, while QSI makes strategic investments and can be ignored in this context.
The majority of Qualcomm's revenues are generated from the sale of mobile communications chips (QCT). The majority of the profits are generated by the higher-margin business with patent rights and licenses of Qualcomm's 3G, 4G/LTE and 5G technology (QTL). Depending on the source, QTL revenues account for approximately 3-7% of the wholesale price of a smartphone sold worldwide.
While the QCT segment contributed 76% of revenues in fiscal 2018, the QTL segment accounted for 54% or more than half of pre-tax earnings (EBT) (see following chart).
Qualcomm's segment results in FY 2016-2018. Source: 2018 Annual Report of Form 10-K
Qualcomm faced headwinds in various court cases that have been going on since 2014, alleging that the company abused its monopoly position to inflate prices.
On the one hand, Qualcomm has been exposed to numerous lawsuits with Apple and its suppliers, as well as Huawei, which have suspended royalty payments until the lawsuits are over.
On the other hand, Qualcomm has been fined billions of dollars as a result of various global court orders.
All of these factors have resulted in a decline in Qualcomm's revenues and profits over the past five years, and the share price has come under massive pressure for fear of further revenue declines. Nevertheless, the shareholders were remunerated with a dividend of around five percent during this period.
The last five years of the stock are literally like a roller-coaster ride (see figure below):
Qualcomm's stock chart for the period from April 2014 to April 2019. Source: YCharts.
A short review
Most recently, on May 3, 2018, I published an article about Qualcomm on Seeking Alpha, "Why It's A Bargain Right Now," and presented two scenarios for short-term and long-term investors.
On the one hand, I discussed the long-term prospects in connection with a potential takeover of NXP (NXPI), according to which a leading chip company in the areas of mobile communications technology, the automotive industry, and digital payment solutions will be created.
On the other hand, I spoke about the upside potential of the stock price in the context of an announcement of a tremendous share buyback program in the amount of $20 to $30 billion which would correspond to 27-40% of the market capitalization at that time. At the same time, I discussed the sense and nonsense of this potential share buyback program.
While the NXP acquisition was cancelled due to a delay in the approval process by the Chinese regulatory authorities, the company announced a $30-billion share buyback program on July 25, 2018 (of which $7.8 billion was still pending as of December 31, 2018).
This announcement of the share buyback program catapulted the stock from $59 to $74 within a few days (representing a 25% rise in the share price).
In the course of the general stock market correction, the uncertainties surrounding a trade deal with China and the legal dispute with Apple, the stock bottomed again at around $49 at the end of January 2019.
Furthermore, in my article of May 3, 2018, I added that Qualcomm's management aims to resolve the license disputes with Apple by the end of the year and preferably out of court. In this context, it was also announced that the Qualcomm licensing model was revised. The price cap for calculating royalties was dropped from the original $500 to $400 per device (smartphone manufacturers must provide a given percentage of the device price to Qualcomm).
In this context, I added that the revision of the licensing model should help to resolve the current licensing disputes with Apple and Huawei in a timely manner, and also prevent further license disputes and legal disputes with other Licensees. Therefore, assuming a positive development of the points already outlined, the Qualcomm course should arise from its Sleeping Beauty sleep.
I assumed that the price rises that we have seen during the Broadcom takeover battle have been a little preview of what the actual worth of Qualcomm is.
So what happened recently?
On April 16, 2019, it was announced that Apple and Qualcomm agreed to dismiss all litigation worldwide in a settlement that involves Apple paying Qualcomm. The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend and a multiyear chipset supply agreement.
As a result of this announcement, Qualcomm's share price exploded again, rising by around 45 percent within a few days (see chart below):
Qualcomm's share price soars following announcement of agreement with Apple. Source: YCharts.
While no information has been provided about the amount of the actual payment, UBS analyst Timothy Arcuri estimates that Apple paid $5 to $6 billion to Qualcomm to settle the global litigation.
In a regulatory filing related to the agreement, Qualcomm reveals it expects incremental EPS of about $2 as product shipments ramp. This expectation is in line with the 2019 guidance announced by Qualcomm in April 2018. As a result, the settlement of the licensing dispute with Apple would have a positive impact of $1.50 to $2.25 on Non-GAAP EPS (see following figure).
Fiscal 2019 EPS guidance. Source: Qualcomm Inc. 2018 Q2 - Results - Earnings Call Slides
At the same time, Intel has announced that it drops 5G smartphone modem business after Qualcomm-Apple truce. Instead, Intel will focus on 4G and 5G modems for PCs, IoT, and other data-centric devices. This should make it obvious that the 5G modems for the iPhones (as well as probably for the iPads and Apple Watches) will be delivered by Qualcomm from 2020. In any case, Qualcomm is considered the leading designer of 5G modems and already has a 5G modem in its portfolio, the so-called Snapdragon X50.
As expected, the settlement of the Apple-Qualcomm dispute resulted in numerous analyst upgrades.
First, Stifel leaves Qualcomm's sidelines for a Buy rating ($100 PT) and says management's $2/share earnings increase projection suggests no or only a slight discount to Qualcomm's licensing fee.
Second, Evercore steps from In-Line to Outperform calling Qualcomm shares "investable" again after the Apple settlement. The firm raises its target from $60 to $90.
Third, JPMorgan (JPM) cites Qualcomm's "strong 5G positioning" in its move from Neutral to Overweight.
I assume that further analysts will follow with bullish comments.
How attractive is Qualcomm's current valuation?
While it is currently difficult to make a valuation based on cash flows without additional guidance from management, the EPS guidance for the fiscal year can be used to make a current valuation compared to the peer group.
As mentioned earlier, Qualcomm management expects earnings per share of $4.47 to $5.22 for fiscal 2019. As the licensing dispute with Huawei is still pending, I take a conservative approach to the valuation basis and expect a GAAP EPS of $5. Based on the closing price of $79.89 from Thursday last week, the P/E ratio would be 16 for fiscal year 2019. Based on the non-GAAP EPS cap of $7.50, the P/E ratio of 10.65 is even lower.
Looking at the peer group valuation, it is noticeable that despite Qualcomm's market leadership and quasi-monopoly position in the 5G sector, the licensing disputes with Apple and Huawei caused it to trade at a discount. For example, Texas Instruments (TXN) (22.04), Taiwan Semiconductor Manufacturing (22.13) and Xilinx (XLNX) (34.88) have a P/E ratio at least 37.5% higher than Qualcomm.
On the other hand, companies such as Intel (INTC) (12.98) and Micron (MU) (6.82) have lower P/E ratios. However, this is not surprising, as Micron produces rather inferior chips with NAND and DRAM in comparison to Qualcomm, and Intel generates its sales predominantly in the PC sector, which is losing more and more importance. In addition, the results of these two companies are influenced by factors such as the slowdown in China and weakening NAND and DRAM demand.
In contrast, the 5G segment is still in the starting stages, so Qualcomm's future earnings do not yet appear to have been included in the current valuation. This could mean, among other things, that the stock is currently attractively priced, despite the recent stock price rally.
The following figure illustrates the peer group valuation.
P/E ratios im Peer Group Vergleich. Source: YCharts.
In order to evaluate how attractively Qualcomm is currently valued, assumptions must first be made. According to Q1 2019 results, management expects a 5% increase in 3G/4G/5G device shipments in 2019. The year 2019 will also be the roll-out year for 5G (see following figure).
Qualcomm's global 3G/4G/5G device shipment estimates. Source: Qualcomm Inc. 2019 Q1 - Results - Earnings Call Slides
If it is now assumed that device shipments will experience acceleration from 2020 and grow by 10%, Qualcomm's results will be affected accordingly. Let's say Qualcomm's results would grow by only 10% per year over the next five years for the sake of simplicity (I assume that Qualcomm's results will be boosted by the 5G rollout and the settlement of the Apple and Huawei dispute, but we need a basis to make a useful valuation with the information available).
I have prepared two valuation models for this scenario. In the first valuation model, earnings per share for the next five years are discounted at 8% and a terminal value is calculated. In this model, no growth is assumed from last year onwards. Since the chip sector is subject to cycles, this approach can make sense. Finally, the fair value is determined on the basis of earnings per share for the next five years and the terminal value.
In the second valuation model, earnings per share for the next five years are also discounted at 8%. In comparison to the first model, however, no terminal value is calculated, but the result of the fifth year is multiplied by the average P/E ratio of the last five years, which according to Morningstar is 19.4 (see red mark in the following figure).
Qualcomm's valuation as of April 19, 2019. Source: Morningstar.
Based on the first valuation method, the fair value is $120.68, which corresponds to an undervaluation of the stock of 51% (see figure below).
Fair value calculation, method I. Source: Author's calculation.
Based on the second valuation method, the fair value is $96.65, which corresponds to an undervaluation of the stock of 21% (see figure below).
Fair value calculation, method II. Source: Author's calculation.
Regardless of which model is used as the valuation basis, it should be noted that Qualcomm has a pending $7.8 billion share buyback program as of December 2018 (see following figure).
Qualcomm's stock repurchases since FY 2003. Source: Qualcomm Inc. 2019 Q1 - Results - Earnings Call Slides.
In addition, Qualcomm had short and long-term debt totaling $16.39 billion as of Q1 2019. In contrast, cash and marketable securities totaled $10.32 billion. If the $5-6 billion proceeds from Apple are added to this, Qualcomm has a net debt-free balance sheet (see following figure).
Qualcomm's key figures as of December 2018. Source: Qualcomm Inc. 2019 Q1 - Results - Earnings Call Slides.
Furthermore, investors are rewarded with a dividend yield of currently 3.10% on Thursday's closing price (most recently increased from $0.54 by 9% to $0.62 per share and quarter). Nevertheless, until two years ago the dividend was increased by double-digit growth rates. Now that the legal dispute with Apple has been settled, I assume that the legal dispute with Huawei will also be resolved in the short term and that Qualcomm will again increase the dividend by double-digit growth rates in the future.
The following chart illustrates Qualcomm's dividend performance since 2009:
Qualcomm's quarterly dividend payments since FY 2009. Source: Qualcomm Inc. 2019 Q1 - Results - Earnings Call Slides.
What additional growth factors could Qualcomm have?
1) The semiconductor sector in general
Nowadays, almost every electronic device contains chips, no matter whether television, smartphone, tablet, smartwatch, automobile or coffee machine. But they are not just simple chips. The technology is now so mature that these devices have to communicate with each other and are becoming increasingly powerful (keyword: "Internet of Things").
In my view, the semiconductor sector is almost a consumer goods market that will grow even faster in the future, driven by developments such as electric cars, autonomous driving, robotics, artificial intelligence and wearables. My assumption is confirmed by an article in the German-language magazine Focus Money, according to which the global semiconductor market will grow by 16.8% to more than 400 billion dollars. The share of semiconductors in electronic devices is expected to rise to a record 28.1% and beyond (Focus Money, Issue No. 43/2017).
An additional boost is coming from emerging markets such as China and India. For example, 41.5% of all semiconductors were installed in China in 2015 (Focus Money, Issue No. 34/2017).
The chart below shows that after the financial crisis broke out in 2007, there was only a small drop in semiconductor sales, but in 2010 there was a strong recovery, confirming my thesis.
Revenues in the semiconductor industry worldwide. Source: taken from Focus Money, Issue No. 43/2017.
2) Broad product range in future-oriented markets
According to Qualcomm management, commercial deployment of the 5G technology is expected to begin in the first half of 2019. 5G is a key technology on the way to the age of the "Internet of Things", such as autonomous driving, "Internet of Things" and the increasing digitalization of areas of life. At the same time, 5G will contribute to the spread of ultra-high definition (4K) video streaming and virtual reality.
It is certainly understandable what immense potential lies behind 5G technology and Qualcomm as the designer and beneficiary of this technology.
A competitive advantage of Qualcomm, in addition to its strong positioning in mobile communications, is its broad product range in future-oriented markets such as augmented reality and virtual reality.
The areas of Virtual Reality and Augmented Reality offer immense potential and represent a huge future market. Qualcomm's new and most powerful chip "Snapdragon 845," unveiled in December 2017, can be used in VR/AR headsets as well as smartphones.
Qualcomm has developed a reference headset for this purpose, which was presented at the Mobile World Congress held in Barcelona from February 26 to March 1, 2018.
The first customers in the AR/VR headset segment are Oculus (a Facebook company) and HTC, which are also among the largest suppliers in this segment.
Thus Qualcomm is represented not only on 5G and Internet of Things, but also in the future markets of Virtual Reality and Augmented Reality.
3) Increasing expansion of mobile communications technologies in emerging markets
Demand for 3G and 4G/LTE is growing, particularly in emerging markets such as China and India. In India, Qualcomm has entered into a cooperation with Reliance Industries Limited, the most valuable Indian company in terms of market capitalization. Mukesh Ambani, CEO of Reliance Industries Limited, has set himself the goal of providing mobile communications throughout India. To this end, in 2016 he launched the telecoms group "Jio" and acquired more than 100 million customers within ten months. Within the next few months, the customer base is expected to grow to 250-300 million customers.
This means that in addition to China, more and more people in India will be turning to smart devices. In addition, the in-house "Jio Phone," launched in September 2017 and designed to be an affordable smartphone for the Indian population, is equipped with Qualcomm's 4G technology, which should have an impact on Qualcomm's revenues in the coming quarters.
India has a population of 1.3 billion. Assuming you equip only half of India's population with smartphones and Qualcomm earns the lower limit of 3% of the retail price on each device at an average retail price of USD 300 per device, this would be an additional $5.85 billion in revenue for Qualcomm. This, in turn, would mean a 25% increase in revenue based on 2018 revenue. This example only applies to smartphones. This calculation does not take into account the fact that more and more smart devices are being equipped with LTE and 5G modems in future. The price of USD 300 is very realistic, even relatively low, since Apple in India, for example, offers refurbished iPhones at this price.
Qualcomm also has a strong presence in the Chinese smartphone market, the largest in the world. The vendors Huawei, Oppo and Vivo, which are competing head-to-head in China with market shares of 19%, 18% and 17%, respectively, closely followed by Xiaomi and Apple, are all Qualcomm customers.
All of these factors represent Qualcomm's technological leadership and "moat" in the current marketplace, while at the same time indicating its likely role in the increasingly digitized and networked world of the future.
4) Potential acquisition of Dutch chip manufacturer NXP Semiconductors
Qualcomm CEO Steve Mollenkopf gave an interview on CNBC after settling the dispute with Apple. He was confronted with the question of whether a potential acquisition of NXP Semiconductors was still in the pipeline, as China would have given the go-ahead for a potential acquisition during negotiations with the US government. Steve Mollenkopf commented: "We're grateful to learn of it, but the time has passed. The clock has run out."
While at first glance it looks as if the CEO has closed the doors, this could also be a negotiation tactic.
In my opinion, Qualcomm could use the money available on the balance sheet and the Apple deal inflows to acquire NXPI. This acquisition could make sense for a number of reasons.
NXPI is one of the largest European chip manufacturers and, with a market share of over 14%, the market leader in the automotive sector for connected and autonomous cars, ahead of the German company Infineon (OTCQX:IFNNF).
Market shares of semiconductor manufacturers in the automotive sector. Source: Statista.
Furthermore, NXPI's Mifare smart card technology is considered as one of the most widely used contactless smart card technologies in the world. According to NXPI, it has sold over 10 billion cards and over 150 million card readers. In terms of market share, NXP ranks second behind Infineon, but ahead of Samsung.
The combination of Qualcomm and NXPI would achieve annual revenues of more than USD 30 billion and a leadership position in markets such as mobile communications, the Internet of Things, security solutions, and the automotive industry. The total volume of these markets is expected to reach USD 138 billion by 2020, providing ample growth potential.
In addition, the NXP acquisition will enable Qualcomm to achieve greater diversification of its revenue sources, reduce its dependence on the smartphone business and even have its own manufacturing facilities. As a result, Qualcomm will be less dependent on individual sectors and will be able to create synergies and reduce costs through in-house production, which may result in higher margins in the QCT business. In this way, profits have further growth potential.
Another key competitive advantage of the NXP acquisition would be that Qualcomm could better protect its technologies and thus its competitive advantage by eliminating contract manufacturers and allowing chips to be manufactured in its own manufacturing facilities.
5) A potential trade deal with China
A potential trade deal with China could give the Qualcomm shares another boost, as 67% of revenues in 2018 were generated with Chinese partners (see chart below).
Regional breakdown of Qualcomm revenues in FY 2018. Source: 2018 Annual Report of Form 10-K
At this point it is worth mentioning that in China the vendors Huawei, Oppo and Vivo deliver a head-to-head race with market shares of 19%, 18% and 17%, respectively, closely followed by Xiaomi and Apple. Excitingly, these companies are all Qualcomm customers.
Furthermore, a trade deal could help Qualcomm and Huawei to settle their license dispute and allow Qualcomm management to focus fully on operations in the future.
This deal could also help Qualcomm better protect its intellectual property in the future and maintain its market leadership in various sectors.
All the above mentioned potential growth factors represent Qualcomm's technological leadership and "moat" in the current environment and at the same time demonstrate its likely role in the increasingly digital and networked world of the future.
Conclusion
Know what you own and why you own it. – Peter Lynch
The largest price gains are often made in a short period of time, as was recently the case with Qualcomm. So it's important to make assumptions and be patient until the assumptions come true. In my opinion, this is one of the key factors for success on the stock market.
The legal dispute with Apple - one of Qualcomm's most prestigious and important customers - has now been resolved, allowing the company to focus fully on operational performance in the future.
The 5G generation in mobile communications is currently in the roll-out phase, so that it can be assumed that profits and cash flows will increase after the second half of 2019. Irrespective of this, Qualcomm continues to have solid fundamentals at the moment.
Further growth potential is offered by its strong positioning in the areas of the Internet of Things and Augmented/ Virtual Reality. The increasing expansion of mobile devices in emerging markets should also boost growth. A potential trade deal between the US and China could drive the stock higher, as currently more than 60% of Qualcomm's revenues come from Chinese partners.
Qualcomm has a favourable valuation compared to the peer group and is fundamentally undervalued by over 20% despite the share price rally due to the Apple settlement.
In addition, there is a pending share buyback program of around $7.8 billion as well as the dividend yield of currently over 3%, which also speak for an attractive shareholder value in the future.
In connection with the dividend, it is worth mentioning that it grew at double-digit rates until two years ago. Now that the legal disputes have been settled and as a result cash flows should increase, it can be assumed that the dividend will again grow at double-digit rates in the future.
This makes Qualcomm interesting not only for value investors, but also for dividend income investors.
Wish you much success with your investments!
This article was written by
Analyst’s Disclosure: I am/we are long QCOM, AAPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Comments (149)
Not a good news for QCOM. That is why I stay away from QCOM stock, because QCOM don't have much flexible in pricing power if Apple buy Intel's 5G.
Thank you for your comment and the compliment! I have already explained the reasons for my assumption in the article. Nevertheless, I also respect divergent opinions. Best regards,
Güner
thank you for your comment!I could imagine that Apple will release 5G iPhones earlier than expected to push sales due to weakening iPhone sales. Best regards,
Güner
Best regards,
Güner
Sold my shares though at 81,50$
As everyone at once get's bullish after a run up of about 50% it is time to take profit
Best regards,
Güner
Best regards,
Güner
1. FTC off the back
2. Huawei settlement
3. Real constituents of the $2 EPS estimate. If they are not including litigation cost savings and chip savings, that would be awesome.
4. Revised PE estimate likely once the 5G cycle attains critical mass.
5. Likely that many QCOM 5G devices will go with QCOM RF components. So, this is an additional benefit.
6. Re-entry to server chip trials with 5G attach.
7. Fingerprint sensors. The latest Galaxy phones have this. Most likely in the next cycle, other manufactures too will get it.
8. AI/VR/AR investments will slowly start contributing to top line.
9. Automotive segment seems to be steadily growing.
10. 5G could be a super cycle for many device manufacturers in many geographies.I might have missed fee but the message is clear. This is a keeper as of now. Current value is still way underpriced.
Note that Samsung and Huawei developed their own chips and are increasingly making use of this.
Also they will develop their own modems, and as their piece of the smartphone market grows this is a negative for Qualcomm. I think right now with 5-g in the near future (1-2 years till it takes off) the valuation of Qcom is pretty rich compared with competitors(Intel)
Best regards,
Güner
Monday (4/22/2019): Qualcomm Inc. (QCOM) Opened at $79.83, a gap down of -$0.06 from Thursday’s close, and closed Monday at $81.97, up $2.08, or up +2.6 percent. Year to date (ytd), Qualcomm is now UP +28.04 percent. Qualcomm closed above its 50-day Simple Moving Average (sma) of $56.884, and above its 200-day sma of $60.475. Qualcomm’s 50-day sma is in an uptrend, while Qualcomm’s 200-day sma turned up Friday 4/12/2019. Of Special NOTE: As of Monday’s close, Qualcomm is now $22.453 above its 50 day Simple Moving Average (sma) or plus 39.47 percent. For Tuesday's (4/23/2019) DAILY trading:
Qualcomm’s Resistance (r2) is $84.432
Qualcomm’s Resistance (r1) is $83.201
Pivot Point is ............. $81.269
Qualcomm’s Support (s1) is ... $80.038
Qualcomm’s Support (s2) is ... $78.107I compare these performance numbers ... Daily Note: thru Monday (20190422):
(a) Qualcomm’s intraday HIGH was +$0.950 above Resistance (r2 = positive)
(b) Qualcomm’s intraday HIGH was +$1.780 above Resistance (r1 = very positive)
(c) Qualcomm closed +$2.600 above its Pivot Point (very positive)
(d) Qualcomm’s intraday LOW was +$0.797 above Support (s1 = positive)
(e) Qualcomm’s intraday LOW was +$2.147above Support (s2 = very positive) In looking at whether the markets, especially the computer algos, are positive or negative, Bullish or Bearish, on Qualcomm, I look not only at the Qualcomm stats for previous years, but also at the stats for the QQQ ETF (tracking Error to the Nasdaq 100 = 0.07) and the SPY ETF (tracking Error to the S&P 500 = 0.05) of which Qualcomm is a component.
Year to date, on average, Mr. & Ms. Fickle Markets are ‘buying’ into Qualcomm when the intraday LOW is +$0.282 above support (s1) and ‘selling’ when the intraday HIGH gets +$0.308 above Resistance (r1). Qualcomm Sentiment has changed to STRONGLY BULLISH with ‘profit taking’ selling occurring above Resistance (r2). In 2018, on average, Mr. & Ms. Fickle Markets were ‘buying’ into Qualcomm when the intraday LOW was -$0.011 below support (s1) and ‘selling’ when the intraday HIGH was -$0.009 below Resistance (r1). In 2017, on average, , Mr. & Ms. Fickle Markets were ‘buying’ into Qualcomm when the intraday LOW was -$0.013 below support (s1) and ‘selling’ when the intraday HIGH was -$0.016 below Resistance (r1).
Looking at QCOM (ytd) versus the SPY ETF (ytd): Year to date, on average, Mr. & Ms. Fickle Markets are ‘buying’ into SPY when the intraday LOW is $0.327 above support (s1) and ‘selling’ when the intraday HIGH gets +$0.309 above Resistance (r1). QCOM: intraday HIGH gets +$0.308 above Resistance (r1)
SPY: intraday HIGH gets +$0.309 above Resistance (r1) See, … the computer algos are paying attention to the Pivot Point, Supports (s1, s2) and Resistances (r1, r2) to WITHIN a penny on average … as am I. More homework to do ...
Best regards,
Güner
I hope you can cover more tech stocks. good job.
Güner
Best regards,
Güner
Güner
Best regards,
Güner
The 'Daily' Projected lower target thru Friday 4/26/2019: $73.75 The 'Weekly' Projected upper target ( 4 to 6 weeks ): $92.28
The 'Weekly' Projected lower target Weekly ( 4 to 6 weeks ): $68.60Hope this helps :-} | AAPL | 185.55 |
https://appleinsider.com/articles/19/04/21/northern-california-apple-store-thefts-restart-100k-in-iphones-lifted-from-best-buy-more | Northern California Apple Store thefts restart, $100K in iPhones lifted
from Best Buy & more | AAPL: 186.7 ( -0.3 ). Toggle navigation Close Nav. AppleInsider Logo · News
· How-Tos. Apple A-Z. AirPods · Apple TV · Apple Watch · HomePod · iPad... | Apr 21, 2019 | AppleInsider | Northern California Apple Store thefts restart, $100K in iPhones lifted from Best Buy & more
San Francisco Bay Area Apple Store thefts restart, plus iPhone thefts around the world including one in which the thieves came back to ask for the passcode, and another by a man who had gotten out of jail moments earlier — all on the Apple Crime Blotter.
The Apple Store in Palo Alto
The latest in an occasional AppleInsider series, a look at the world of Apple-related crime.
Apple Store thefts return to the Bay Area
The massive ring that carried out dozens of Apple Store thefts throughout California last year was busted in the fall, but that doesn't mean such crimes are a thing of the past. In fact, four such incidents have been reported just at the 4th Street Apple Store in Berkeley in the last week. Each time the thieves, according to CBS San Francisco, came into the store, stole the items, and "used brute force" to grab them.
Also this week, thieves shattered the doors of the Apple Store in Palo Alto in a late-night theft, coming away with nine MacBooks. The thieves, however, dropped two of the computers on their way out the door, per Palo Alto Online.
No jail for Belfast Apple Store thieves
Two students from London who were arrested last year for stealing "thousands of dollars" worth of equipment will not receive jail time. According to the News Letter newspaper, the theft was described by one of their lawyers as a "hare-brained scheme," and they received suspended sentences.
iPhone thieves demand phone's passcode
Three men in Wisconsin are accused of stealing a man's iPhone- and then returning to the scene of the crime to ask for the phone's code. Per The Journal Times, one of the thieves went up to a man, asked what gang he was part of, and then punched him, stealing the contents of his pockets which included an iPhone. Then, they drove back and demanded the password.
The three accused thieves are a 21-year-old and two juveniles. The 21-year-old was charged with both robbery with the use of force and two counts of intentionally contributing to the delinquency of a minor.
Indian officer's phone stolen while he was distracted
Thieves in India used a distraction tactic in order to steal a police officer's iPhone. According to the New Indian Express, the officer was distracted when a man began banging on his door. While he was distracted, an accomplice banged on the opposite window.
While he was distracted by the second man, the first man reached in and grabbed the officer's phone.
Trio took $100,000 in iPhones from Louisiana Best Buy
Three men were arrested last month for stealing over 100 iPhones, valued at over $100,000 from a Best Buy in Baton Rouge, La, and police believe they were also responsible for similar thefts in other states. According to WAFB, the three men were caught on store surveillance stealing the items from a cabinet and filling a trash can with them. The men were arrested at a motel after police ran the license plates for their car; they were found at a motel along with the stolen iPhones.
Similar burglaries were reported in Texas and Alabama, as well as Lake Charles, Louisiana.
Phone store owners arrested for selling stolen iPhones and iPads
The owners of a Michigan cell phone store have been arrested for buying hundreds of stolen Apple products and selling them nationwide. According to Click On Detroit, the owners of Ace Future Wireless bought items that included the 40 iPads that were stolen from a local schools, and they also bought iPhones that were taken from stores.
They were caught after attempting to buy from an undercover officer.
Florida man steals iPhone from car immediately after jail release
A man in Florida made headlines last week when he stole an iPhone and other items from a car- one that was parked immediately outside the jail from which he had been released moments earlier. According to The Daily Mail, the 34-year-old man walked about 20 feet from the Port St. Lucie jail he'd just gotten out of when he began scoping out cars. Police found the iPhone 7 in his pockets, as well as $547 in cash, a debit card and a driver's license that wasn't his.
He was re-arrested and charged with burglary, grand theft and possession of stolen property.
iPhone thief caught taking selfies
In other South Florida iPhone theft news, a man had his iPhone taken from his work truck while getting gas. Per The Palm Beach Post, the owner of the phone began monitoring his iCloud account remotely, and noticed the thief taking selfies and videos.
iPad helps catch men accused of stealing golf clubs
Three men in New Mexico were served with arrest warrants last week after police say they stole golf clubs from a local golf course, according to the Santa Fe New Mexican.
The three men reportedly stole an iPad, and cash, from a restaurant at the golf course. They went to a pawn shop owned by a former manager of the course, while wearing clothes associated with the golf course. The trio ran away when they noticed the owner was suspicious.
The iPad led authorities to their apartment.
Do you have a story about Apple-related crime? Tell us about it here. | AAPL | 185.55 |
https://www.macobserver.com/reviews/quick-look/review-logitech-slim-folio-pro/ | Logitech's Slim Folio Pro is the Backlit Keyboard you Need for ... | Tips How-To AirPods Cool Stuff Found Apple TV+ Apple Watch Series 7 AAPL
Security Privacy · Mac · M1 M1 Pro M1 Max Apple Silicon macOS Ventura
macOS... | Apr 22, 2019 | The Mac Observer | Logitech sent me its new Slim Folio Pro keyboard to review, and after using my iPad exclusively as my main computer for a little over two weeks, here are my thoughts.
[Logitech Announces Slim Folio Pro Keyboard Case]
Specs
- Compatible with iPad Pro 11-inch and iPad Pro 12.9-inch (3rd gen)
- Fixed viewing angles: Type Mode: 58°. View Mode: 10°
- Bluetooth Low Energy connectivity
- Dimensions for 11-inch Slim Folio Pro: Height: 7.68 in (195 mm); Width: 9.96 in (253 mm); Depth: 0.89 in (22.55 mm); Weight: 1.22 lb (552.42 g). Dimensions for 12.9-inch Folio: Height: 9.06 in (230 mm); Width: 11.30 in (287 mm); Depth: 0.88 in (22.46 mm); Weight: 1.56 lb (707.43 g)
- Battery Life: Up to 3 months, based on two hours of typing per day
- USB-C
Slim Folio Pro
I’ll say up front that this is actually my first iPad keyboard case. I can’t compare it to Apple’s Smart Keyboard or other models. For that I recommend Juli Clover’s review at MacRumors.
What I can tell you is that the Slim Folio Pro is a bit bulky, but that’s understandable for one that is backlit. As you can see in my photo, folded up it’s definitely thicker than a MacBook Pro. It also adds considerable weight to the device. It’s a sturdy case though, and I’m not afraid to put it in my backpack with a bunch of other stuff.
In one of my photos, you’ll see that when you close the case, there is a magnetic flap that holds it together. Underneath that flap there is a slot for the Apple Pencil.
Typing on it is great. My fingers are slightly cramped, but I do have an 11-inch iPad Pro, so any keyboard would probably be cramped. The keys have decent travel, and although it took a bit to get used to, I can type as fast as I can using my MacBook Pro.
The function keys at the top of the keyboard are nice. There are 13 keys: Home, Backlit Down/Up, Search, Onscreen keyboard, Previous Track, Play/Pause, Next track, Volume mute, Volume down, Volume up, Lock, Bluetooth connect, Keyboard battery check.
It was a bit difficult to get the iPad into the case at first, and you’ll want to be careful snapping the rubber corners on. The corners are rigid, which makes it hard to press the iPad’s power button and volume up/down keys, especially if I want to take a screenshot.
I wish there were more viewing angles. There is only one for typing. It’s a comfortable angle to use at a desk, but much of the time I’m typing with the iPad in my lap, at which point the angle becomes uncomfortable.
Conclusion
Overall, I’m pleased with the case. Eventually I’m sure I’ll explore other cases, but for my first one the Slim Folio Pro is a great start. Starting at US$119, it’s cheaper than Apple’s Smart Keyboard. And the backlit keys make it possible to type into the night.
It’s only available in a dark, industrial gray, like the Smart Keyboard. I personally like gray but others will probably want more color options.
One thought on “Logitech’s Slim Folio Pro is the Backlit Keyboard you Need for your iPad”
Can’t understand why they didn’t use the smart connector. | AAPL | 185.55 |
https://finance.yahoo.com/news/apple-stock-may-jump-by-as-much-as-530-despite-trumps-trade-war-on-china-162558139.html | Apple stock could jump by as much as 530%, despite Trump's trade war on
China | Apple's (AAPL) stock has formed what traders call a “golden cross” chart
pattern. The formation — typically a bullish signal —happens when a
short-term... | May 17, 2019 | Yahoo Finance | Apple stock could jump by as much as 530%, despite Trump's trade war on China
At least from a technical analysis perspective, Apple’s stock is poised to laugh in the face of President Donald Trump’s raging trade war with China.
Apple’s (AAPL) stock has formed what traders call a “golden cross” chart pattern. The formation — typically a bullish signal —happens when a short-term moving average crosses over a longer term moving average.
One could see that formation below for Apple, compliments of Miller Tabak strategist Matt Maley. It’s interesting that the stock has made this pattern considering the fundamental risk to Apple’s business model from the now heightened U.S.-China trade war.
Maley notes that Apple’s stock has acted very well after its last three golden cross patterns. Actually, the gains that have ensued border on insane — Maley’s research shows gains of 530%, 110% and 130% (see prior rallies below), respectively, over the past decade.
“If things calm down [on the trade front] (which might be a BIG "if"), the upside could be quite bright for this Apple,” Maley says.
Maley isn’t all in on Apple, however. While the stock may be poised to rally, it’s not without greater than normal risk for the tech giant.
“Given the fundamental issues surrounding the stock, investors should keep tight stops on any new long position in Apple, but if history is any guide, it could rally quite a bit from current levels,” Maley adds.
Caution on global behemoth Apple makes sense. Apple not only sources a majority of its components from China, but has made a retail store push in the country. The yawning trade war between the two mega countries could severely raise Apple’s cost of doing business and weaken store traffic and in turn, hit profits.
“The trade war has already undercut U.S. and global growth. Prolonged brinkmanship creates further damage. A major tail risk is that tariffs extend to all Chinese products at the end of June, more than doubling the trade war shock,” cautions BAML strategists.
“I don’t envy Apple’s chief operating officer right now,” remarked Weeden & Co. Chief Global Strategist Michael Purves on Yahoo Finance’s The First Trade.
Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter @BrianSozzi
Read Sozzi’s latest: | AAPL | 185.55 |
https://9to5mac.com/2019/05/18/boycott-apple-china-movement/ | 'Boycott Apple' movement gains new traction in China as US ... | Companies in China boycotting Apple, reportedly threatening to fire iPhone
users · AAPL issues rare revision to earnings guidance, lowering
expectations due to... | May 18, 2019 | 9to5Mac | While Apple, aside from some accessories, has escaped the effects of the ongoing trade tensions between the United States and China, customers in China are growing increasingly anti-Apple. A new report from BuzzFeed News explores an increase in the “Boycott Apple” in China.
In addition to the trade dispute, President Trump this week also signed an executive order that bans U.S. telecommunication companies from buying foreign equipment that is a potential national security threat. Further, he has also banned Huawei from buying U.S. technology without prior government approval.
According to BuzzFeed News, Chinese consumers have taken to Weibo to express their disdain with Apple during the trade tensions. One user questioned why people were buying iPhones when Huawei technology was equally as capable. Another joked about Huawei’s logo:
“The functions in Huawei are comparable to Apple iPhones or even better. We have such a good smartphone alternative, why are we still using Apple?”
“I think Huawei’s branding is amazing, it chops an apple into eight pieces.”
Another user said they felt “guilty” watching the trade war and plans to switch from their iPhone when they can afford to do so. “I feel guilty watching the trade war. Once I have money I will change my smartphone,” the user wrote via Weibo on their iPhone.
This isn’t the first time that the “Boycott Apple” movement has gained traction in China. In December, a report suggested that companies in China were boycotting Apple and reportedly threatening to fire iPhone users. In such instances, companies were said to be offering employees large subsidies on Huawei products as alternatives.
Additionally, analysts speculated in January that Apple was facing an “informal boycott” from shoppers in China and India as a result of the trade dispute. A drop in China sales was the primary reason for Apple’s major decline in iPhone shipments during the first quarter of 2019, though things did improve during the second quarter.
Read more:
- Apple might be suffering from an ‘informal’ consumer boycott in China, analysts say
- Companies in China boycotting Apple, reportedly threatening to fire iPhone users
- AAPL issues rare revision to earnings guidance, lowering expectations due to ‘fewer iPhone upgrades’ & China struggles
FTC: We use income earning auto affiliate links. More.
Comments | AAPL | 185.55 |
https://9to5mac.com/2019/05/20/apple-toshiba-memory/ | Report: Apple to sell back its stake in Toshiba Memory as part ... | AAPL Company. Breaking news from Cupertino. We'll give you t… Author.
Avatar for Benjamin Mayo... | May 20, 2019 | 9to5Mac | In June last year, Toshiba sold its memory division to a four-company consortium that included Apple. However, now, Toshiba is going to buy back the shares it sold off to Apple, Dell, Kingston, and Seagate – as reported by The Wall Street Journal. The companies are expected to collect a tidy profit from their investment.
You may be wondering why the unit wants to buy back its shares only a year after they were sold and split up from the parent company. The initial deal was put in place to prevent a partial takeover from Western Digital, which would have further reduced market competition.
A few months on from the turmoil, Toshiba Memory is looking to refinance and has negotiated $11.8 billion in loans from Japanese banks, as it looks to become publicly listed. This gives it enough capital to buy out the American company shares.
The Journal says the four companies will make a few hundred million dollars in profits from the deal, representing a solid return for an investment that only lasted about 12 months.
All told, Apple’s investment helped to sustain a more competitive memory chip environment — which will ultimately lead to lower supply-chain prices for components used in its product — and will record a decent financial profit on its books.
FTC: We use income earning auto affiliate links. More.
Comments | AAPL | 185.55 |
https://finance.yahoo.com/news/mission-bay-san-francisco-192501532.html | San Francisco's tech workers are flocking to this neighborhood | ... the site of at least a dozen luxury condominium buildings sporting
high-end finishes and amenities that appeal to tech workers employed by
Apple (AAPL),... | May 17, 2019 | Yahoo Finance | San Francisco's tech workers are flocking to this neighborhood
San Francisco has notoriously expensive housing, but that hasn’t stopped affluent tech workers from snapping up real estate in the city’s Mission Bay neighborhood.
In more recent years, Mission Bay has become the site of at least a dozen luxury condominium buildings sporting high-end finishes and amenities that appeal to tech workers employed by Apple (AAPL), Facebook (FB), Google (GOOG, GOOGL), Lyft (LYFT), Pinterest (PINS), Square (SQ), Uber (UBER), and other Silicon Valley companies, according to data provided exclusively to Yahoo Finance from real estate firm Compass.
The 303-acre stretch of urban land is also extremely desirable because of upcoming developments, as well as its close proximity to tech companies in the city and I-280 and US-101 — the two most frequently used highways for getting to tech companies in the San Francisco Bay Area’s South Bay, including Apple, Facebook, and Google.
“A lot of tech employees prefer that their homes be in pretty close proximity to their work,” explains Compass big data realtor Deniz Kahramaner of this real estate phenomenon. “Mission Bay is a newer, up-and-coming area that hits that sweet spot for many of them, with a lot of high-end residential constructions located a walk or quick Uber or Lyft ride away from their company headquarters.”
During 2018, at least 89 tech workers purchased homes in Mission Bay, according to Kahramaner — a 134% increase in purchases by tech workers year-over-year — followed by 54 homes purchased in the South Beach neighborhood and 39 homes purchased in South of Market, or SoMa, during the same time period. To be sure, though, one luxury condo in Mission Bay finished in 2018 is responsible for 45 of the 89 units sold in the neighborhood last year.
Amenities, amenities
Matt Fuller, co-founder of Jackson Fuller Real Estate, compares these luxury high-rise buildings and their comprehensive amenities to “vertically-gated communities.”
“Many of these tech workers like ‘turnkey’ homes: properties they can just immediately live in with community-oriented set of amenities where someone else takes care of the maintenance,” explains Fuller. “They can just drag their laptop to a common area and go to work.”
The most popular residential property in the neighborhood? One Mission Bay.
The 350-unit luxury condominium building, which is over 90% occupied, sold 45 units in 2018 to tech workers, according to public filings. It includes a heated outdoor pool and poolside cabanas, private dining rooms, chef’s catering kitchen, library, fitness center and sauna, courtyard lounge and firepits, as well as nearly 16,600 square-feet of retail space. While studios and one-bedroom units are among the units entirely sold out, two-bedrooms remain available, starting at $1.56 million for a 1,173-square-foot, two-bedroom, two-bathroom unit. Available three-bedrooms, meanwhile, start at just over $2 million for a 1,639-square-foot three-bedroom, two-bathroom unit.
Arden, another development in Mission Bay with 267 condos, sold 15 units in 2018, ranging from $1.32 million for a 1,230-square-foot two-bedroom to $2.85 million for a 1,844-square-foot three-bedroom unit, MaxReal realtor Jane Hopkins tells Yahoo Finance. Arden also includes a 75-foot rooftop pool, two-story gym, and recreational lounge with pool table, TVs, and sofas.
Meanwhile, The Madrone, another Mission Bay condominium development with 263 units and amenities comparable to One Mission Bay and Arden, currently lists available units ranging from $1.69 million for a 1,252-square-foot two-bedroom to nearly $3.28 million for a 1,921-square-foot three-bedroom with views of the San Francisco-Oakland Bay Bridge.
A quickly-evolving neighborhood
Since Mission Bay became the focus of a redevelopment project by San Francisco city officials in 1998, the area has transformed from a relatively sparse stretch of land dominated by shipyards, warehouses, and old canneries into a neighborhood with high-end condo buildings, shops, and institutions including the UCSF Benioff Children’s Hospital San Francisco, named for Salesforce CEO Marc Benioff and his wife Lynne, who have pledged over $389 million to UCSF overall since 2005.
This September, Mission Bay will also become the official home of the NBA’s Golden State Warriors, with the opening of the Chase Center, a privately financed, $1 billion, 580,000-square-foot arena with seating capacity for 18,000 people. According to the NBA, the arena’s first game in early October, will mark the first professional basketball game since 1971.
Realtors like Vanguard Properties’ Ronnie Escalante and Skybox Realty’s Paul Hwang expect Mission Bay real estate prices to appreciate significantly after the Chase Center opens.
“With the new Warrior Stadium's arena, a lot of clients are looking to live and invest in a few properties by the Stadium right before it opens,” explains Escalante.
Hwang puts an even more positive spin on Mission Bay’s prospects.
“With UCSF and the Golden State Warriors, all the smart people are coming to Mission Bay,” adds Hwang.
Kahramaner and his data team at Compass reviewed all the public filings of San Francisco escrow closings that occurred in 2017 and 2018. The team excluded escrow filings with identical property buyer names that may have been duplicates. They also excluded filings where the properties were purchased by Limited Liability Companies, or LLCs, that did not disclose the individual identities of the property buyers.
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn,YouTube, and reddit.
More from JP: | AAPL | 185.55 |
https://9to5mac.com/2019/05/20/over-the-rainbow/ | Apple accused of 'massive music piracy' by estate of Over The ... | AAPL Company. Breaking news from Cupertino. We'll give you t… Apple Music.
Apple Music... | May 20, 2019 | 9to5Mac | Apple, Amazon, Google, Microsoft and Pandora are all being sued by the estate of Harold Arlen, the composer of Over the Rainbow and many other classic songs.
A 148-page lawsuit accuses the tech companies of being involved in a ‘massive music piracy operation’ …
The Verge reports that the case is based on a claim that the companies are selling pirated versions of both albums and songs written by the composer, and that there does appear to be evidence to support this.
It’s possible to see some of the unauthorized versions cited in the lawsuit in online stores. For example, there are two copies of the album Once Again… by Ethel Ennis available to stream on Apple Music, but the cover of one has been edited to remove the RCA Victor logo.
In another case, we can see a clear price difference between two digital copies of an original cast recording of the musical Jamaica being sold on Amazon. What appears to be an authorized version from the Masterworks Broadway label prices the full album at $9.99 for download, and individual tracks for $1.29, while a seemingly unauthorized copy from Soundtrack Classics lists them for $3.99, and $0.99 respectively. Like the Ethel Ennis album, the RCA Victor logo on the unauthorized cover also appears to have been edited out.
The lawsuit does, however, make a rather less credible: that Apple and the other defendants were not only aware of the piracy, but are motivated to permit it. Per Forbes.
The lawyers for Arlen claim that the online retailers “have had knowledge of their own infringing conduct and that of the many of the pirate label and distributor defendants for several years, and have continued to work with them.” “The more recordings and albums the online defendants make available in their stores and services, the better they are able to attract buyers and subscribers,” they explained.
It’s obvious that none of the companies involved would knowingly allow pirated content in their online stores and streaming services; a claim of wilful infringement simply makes the lawsuit potentially more valuable.
In addition to putting an end to the alleged copyright infringement, the legal representatives of the late songwriter are seeking damages under the federal copyright statute. The total bill for all of the defendants could top $4.5 million.
“Anything less than maximum statutory damage awards would encourage infringement, amount to a slap on the wrist, and reward multibillion and trillion dollar companies that rule the digital music markets for their willful infringement on a grand scale,” the lawyers insisted.
Over the Rainbow is the best-known song referenced, but Arlen composed many others.
While Arlen wrote the music for thirteen shows on the Great White Way, he is perhaps best known for his work in Hollywood. In addition to penning songs for Blues in the Night, Star Spangled Rhythm, and the 1954 remake of A Star is Born, Arlen composed The Wizard of Oz. Its iconic tune “Over the Rainbow” won the Academy Award for Best Original Song in 1939, and was later named the “Song of the Century.”
FTC: We use income earning auto affiliate links. More.
Comments | AAPL | 185.55 |
https://www.fool.com/investing/2020/02/04/apple-makes-dent-in-key-market-iphone-11-smash-hit.aspx | Apple Makes a Big Dent in This Key Market as the iPhone 11 ... | Apple (AAPL -0.57%) returned to the top of the global smartphone sales
chart in the fourth quarter of 2019, according to tech-focused market
research firm... | Feb 4, 2020 | The Motley Fool | Apple (AAPL -0.17%) returned to the top of the global smartphone sales chart in the fourth quarter of 2019, according to tech-focused market research firm Canalys. The company shipped 78.4 million iPhone units during the quarter, an increase of 9% over the prior-year period. But more importantly, Apple managed to corner 21.4% of the global smartphone market in the fourth quarter.
This helped Apple score a comfortable lead over second-place Samsung, which had a market share of 19.2% during the quarter. With these results, it can be said that Cupertino's new pricing strategy has helped its latest generation of smartphones regain popularity among customers. And the biggest evidence that the strategy is working wonders for Apple can be gleaned from the company's terrific growth in India -- the world's second-largest smartphone market.
Apple makes a massive comeback in India
According to Canalys, Apple shipped around 925,000 iPhones in India during the fourth quarter of 2019. While that might not be a huge number in the context of worldwide figures, the fact that Apple's shipments in the region jumped 200% year-over-year is significant. India is a price-sensitive market where Apple has historically failed to make a dent because of its premium pricing.
But things have changed with the iPhone 11. A lower price point, bigger battery, and better camera seem to have tilted the balance in Apple's favor, allowing the company to finish 2019 with two million iPhone shipments in India, up from 1.6 million in 2018. This is great news for Apple since success in India will be key to the company's long-term growth. India's smartphone space is one of the few bright spots in an otherwise dull market.
According to Counterpoint Research, smartphone shipments in India grew 7% in 2019 to 158 million units, while the global smartphone market shrank 1.3%. Even with the recent success of the iPhone 11, Apple is still competing only in the premium smartphone segment -- which it dominates -- but the company is now looking to address an even bigger audience with a cheaper device this year.
More growth in the cards
According to reports from Phone Arena, Apple is reportedly set to begin the production of a cheaper iPhone in 2020. Cupertino has begun trials of the device with full-scale production expected to begin in mid-February. Apple also plans to build around 30 million units of the new entry-level smartphone, which is expected to be priced at $399.
This is not the first time rumors of an entry-level iPhone have surfaced. Noted Apple analyst Ming-Chi Kuo has been suggesting that a budget device like the iPhone SE could hit the market in 2020. And if Apple ends up actually launching such a device, it will be in a great position to tap into the fastest-growing smartphone segment in India. According to International Data Corporation, shipments of smartphones priced between $300 and $500 doubled during the third quarter of 2019 from the prior year.
In all, Apple looks set to build upon the success of the iPhone 11 by tapping into a larger pool of customers in this international market. Success in India's smartphone race will help Apple remain a top tech stock given the opportunity for growth in the region. | AAPL | 185.55 |
https://appleinsider.com/articles/20/02/05/all-the-changes-in-ios-134-carkey-icloud-folder-sharing-memoji-more | All the changes in iOS 13.4: CarKey, iCloud folder sharing, Memoji, & more | AAPL: 187 ( +3.04 ). Toggle navigation Close Nav. AppleInsider Logo · News
· How-Tos. Apple A-Z. AirPods · Apple TV · Apple Watch · HomePod · iPad... | Feb 5, 2020 | AppleInsider | All the changes in iOS 13.4: CarKey, iCloud folder sharing, Memoji, & more
Apple has seeded the first beta of iOS 13.4 to developers and in it come a slew of changes, many of them quite substantial. Let's take a look at what you can expect when it is eventually released.
The first major change to iOS 13.4 is the return of iCloud folder sharing. This was a feature promised for iOS 13, but it was removed and users never quite got to take advantage of it. However, the feature has now returned in iOS 13.4.
By going to a folder within iCloud Drive and tapping Share, users can either add specific people to view a folder, share a link, and allow those users to make changes or just to view the folder's contents.
Another big change is the ability for developers to offer a single app purchase that works not only across iPhone and iPad, but iPhone, iPad, Mac, and Apple TV. This will ease the burden on consumers who don't like having to purchase the same app multiple times.
A big new feature, that we still don't know much about, is called CarKey. This is a new API for iOS and watchOS that will allow you to lock, unlock, and start your car with your iPhone and Apple Watch. Even the ability to share NFC keys with others.
Again, this feature was just discovered and we will likely have to continue digging until we hear from Apple on how this feature will be rolled out and what vehicles may be eventually supported.
Other additions in this beta include nine new Memoji stickers, a rearranged Mail toolbar, new keyboard shortcuts on iPad within the Photos app for navigating and editing, TV app now shows Family Sharing under the Library tab, new call controls and third-party navigation options in CarPlay, and the authorization prompt will appear immediately after granting Always for location access.
As always, this list is non-exhaustive so if you find any other changes in the beta, be sure to let us know and we'll update the list accordingly. | AAPL | 185.55 |
https://realmoney.thestreet.com/investing/stocks/let-s-unpack-what-just-happened-in-tuesday-s-rally-15229942 | Let's Unpack Tuesday's Rally -- and Some Parabolic Moves | You might recall I compared it to Apple (AAPL) , which folks were convinced
had gone parabolic but I disagreed. Tesla I thought was getting there. | Feb 5, 2020 | RealMoney | Well, at least we can say it was a relatively interesting day in the market.
Breadth improved, but it wasn't as good as it should have been with the S&P 500 up nearly 50 and the Russell 2000 joining the fray. But it was the best breadth we've seen in weeks. It wasn't enough to turn the McClellan Summation Index from down to up. That would require another day of really good breadth.
Aside from that, there wasn't much to note statistically. What we did see though, sentiment-wise is as we expected, the Investor's Intelligence bulls backed off even more. They are now at 47.6%. Two weeks ago they were kissing 60%, so there has been quite a turn in sentiment. The last time the bulls were this low was October. They were just under 45% in August. I put this on the positive side of the ledger.
Sticking with sentiment, I want to note that the Daily Sentiment Indicator (DSI) for the Volatility Index (VIX.X) is back at 15. If we get a few more days up that is likely going to fall under 10, which might just give us another push down. Remember, up and down is my expectation. So far all we've gotten is the up from the oversold condition.
Clearly, the chatter was all about Tesla TSLA once again. As I said before, I won't know when the end is, but a few weeks ago, in mid-January when the stock ran from $500 to $600 (blue arrow on the chart) I said I thought the stock was getting into a parabolic move. You might recall I compared it to Apple (AAPL) , which folks were convinced had gone parabolic but I disagreed. Tesla I thought was getting there. It has obviously since exploded into a parabolic move.
It might be hard for you to imagine, but that 20% move in a week in Tesla is obviously more explosive than Microsoft's (MSFT) has been over the last week. But MSFT is up about 13% in a week. To me this is what the Tesla chart looked like a few weeks ago.
I think they are very different companies, but I promised to report to you if I saw other stocks starting to move like this was 1999 and Microsoft is verging on it. Remember it hasn't done anything wrong -- that uptrend is very much intact -- but I am on the lookout for charts that have a nice up-sloping pattern and then all of a sudden start to go vertical. | AAPL | 185.55 |
https://finance.yahoo.com/news/fidelity-high-dividend-etf-fdvv-152603138.html | Is Fidelity High Dividend ETF (FDVV) a Strong ETF Right Now? | When you look at individual holdings, Apple Inc (AAPL) accounts for about
4.12% of the fund's total assets, followed by Microsoft Corp (MSFT) and
Jpmorgan... | Feb 5, 2020 | Yahoo Finance | Is Fidelity High Dividend ETF (FDVV) a Strong ETF Right Now?
Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Fidelity High Dividend ETF (FDVV) is a smart beta exchange traded fund launched on 09/12/2016.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Fidelity. It has amassed assets over $554.20 M, making it one of the larger ETFs in the Style Box - All Cap Value. Before fees and expenses, this particular fund seeks to match the performance of the Fidelity Core Dividend Index.
The Fidelity Core Dividend Index is designed to reflect the performance of stocks of large and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.29%.
FDVV's 12-month trailing dividend yield is 3.91%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.12% of the fund's total assets, followed by Microsoft Corp (MSFT) and Jpmorgan Chase + Co (JPM).
Its top 10 holdings account for approximately 27.75% of FDVV's total assets under management.
Performance and Risk
Year-to-date, the Fidelity High Dividend ETF has added about 0.43% so far, and is up roughly 14.83% over the last 12 months (as of 02/05/2020). FDVV has traded between $28.38 and $33.16 in this past 52-week period.
The ETF has a beta of 0.87 and standard deviation of 11% for the trailing three-year period. With about 134 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity High Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Invesco High Yield Equity Dividend Achievers ETF (PEY) tracks NASDAQ US Dividend Achievers 50 Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Invesco High Yield Equity Dividend Achievers ETF has $939.17 M in assets, iShares Core S&P U.S. Value ETF has $6.76 B. PEY has an expense ratio of 0.53% and IUSV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fidelity High Dividend ETF (FDVV): ETF Research Reports
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports
Invesco High Yield Equity Dividend Achievers ETF (PEY): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research | AAPL | 185.55 |
https://www.bloomberg.com/news/articles/2020-02-04/google-says-developers-can-now-purchase-latest-smart-glasses | Google Says Developers Can Now Purchase Latest Smart ... | AAPL. APPLE INC. 185.01. USD. +0.09+0.05%. Open. Google is making it easier
for developers to purchase the latest version of its smart glasses, with
the... | Feb 4, 2020 | Bloomberg.com | To continue, please click the box below to let us know you're not a robot.
Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy.
For inquiries related to this message please contact our support team and provide the reference ID below. | AAPL | 185.55 |
https://coincodex.com/article/7377/how-to-buy-apple-stock-on-etoro/ | How to Buy Apple Stock on eToro? eToro Trading Guide | Apple's market capitalization is larger than $1 trillion. Now, let's get
started with buying some Apple (AAPL) stock on the eToro platform. | Mar 19, 2020 | CoinCodex | Key highlights:
- eToro is one of the most popular platforms for investing online
- eToro offers users the ability to trade stocks, commodities, ETFs, cryptocurrencies and more
- This step-by-step guide will show you how to buy Apple stock on eToro
Thanks to the rise of online brokers, it's easier than ever to invest your money in Apple and other leading companies. If you've been thinking about buying Apple stock and researching different brokers online, you have most likely already heard of eToro.
Your capital is at risk. Other fees may apply. For more information, visit etoro.com/trading/fees.
eToro was created in 2007 and has since become one of the most popular brokers for trading and investing online. eToro has more than 10 million registered users and is regulated in Cyprus, Australia and the United Kingdom. In addition to giving users the ability to buy and sell stocks, their platform actually provides a diverse suite of other trading products. Let’s quickly run through a list of the defining features of eToro:
- Trade stocks and other traditional financial instruments
- Trade cryptocurrencies
- Copy the portfolios of successful traders
- Test trading strategies with demo trading
- Trade with leverage
Now, let’s check out the main advantages and disadvantages of trading stocks on eToro:
The pros of trading on eToro:
- Large selection of assets available for trading
- Social trading features
- Demo trading support
The cons of trading on eToro:
- Forex trading fees are relatively high
- Withdrawal and inactivity fees
Buy Apple (AAPL) stock on eToro
Alongside Google, Amazon and Microsoft, Apple is part of the "Big Four" tech companies. Founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne, the company has become a leader in the consumer electronics and software sectors through popular products including the iPhone, the Macbook series, and the macOS operating system. The company has more than 135,000 employees and its revenues in 2019 exceeded $260 billion. Apple's market capitalization is larger than $1 trillion.
Now, let's get started with buying some Apple (AAPL) stock on the eToro platform.
1. Create eToro account
Creating an eToro account is very simple, and you’ll be able to log in to your newly-created eToro account within minutes.
Your capital is at risk. Other fees may apply. For more information, visit etoro.com/trading/fees.
If you just want to take a look at what the eToro platform has to offer, the only information that’s required to create an account is an e-mail and a phone number. However, if you want to deposit money and actually start trading, you will have to provide some additional personal information to verify your identity.
2. Complete your eToro profile
After you’ve created your eToro account, you will have to complete your eToro profile before you can start trading. This information is required so that eToro can comply with the applicable AML and CTF regulations. Click “Complete Profile” under your username and follow the presented steps.
3. Fund your eToro account
After you’ve completed the necessary verification, you can fund your eToro account.
The minimum deposit currently accepted by eToro is $200, or equivalent in other currencies. The platform actually offers seven different deposit methods, so choose the one that suits you best:
- Credit / Debit card
- PayPal
- Wire Transfer
- Skrill
- Neteller
- WebMoney
- UnionPay
As with any investment, don’t invest more than you’re willing to lose.
TIP: If you don’t feel ready to trade stocks with real money yet, you can use eToro’s virtual portfolio feature to test out some trading strategies risk-free. You can switch from your real portfolio to your virtual portfolio by clicking the icon under your profile name. You will be given $100,000 in virtual money that you can use to trade any instrument that’s offered by eToro.
4. Buy Apple stock
Once your account is funded, you can start with trading stocks on eToro. You can either buy a stock or short it, depending on how you believe the market is going to behave moving forward. In this guide, we’ll be showing a of buying Apple (AAPL) stock.
Head over to the search bar on the top of the eToro interface and type in the name or the ticker of the stock you wish to buy, in this case Apple. In addition to the price chart, you will also be able to find key information about the stock, including balance sheet, income statements and more. For some stocks, research is also provided.
Click the “Trade” button to place your order for AAPL stock. Now, a window will open where we can tweak all the parameters of our trade. In this example, we’re going to invest $1,000.
By switching between “Trade” and “Order” on the top right, you can either buy the stock at the current best available price, or specify the exact price at which you want to buy the stock. We’ll keep it at “Trade”, as its the fastest and simplest way.
Under “Amount”, we’ll set the amount that we wish to invest – in this case, $1,000. Below, we can see what percentage of our total equity we are using.
In the section on the bottom, you can set your stop loss, leverage and take profit levels. Stop losses are used to define the maximum loss you’re willing to take in the trade, while take profits are used to realize gains by automatically closing the position once it reaches a specified value above our entry price. As far as the leverage is concerned, we’ll be keeping it at 1x, as higher leverage would introduce additional risks to our trade.
After you click “Open Trade”, your order will be submitted and your trade should be executed shortly.
5. Monitor your AAPL stock performance
Once your order is completed, you will be able to follow the status of your trade in the “Portfolio” section. Here, you can also update your stop loss and take profit levels (pink) if you’re not happy with the levels set previously.
If you want to exit the trade, click the X icon on the right (blue).
Do you own the stocks you buy on eToro?
Yes - when you buy a stock such as Apple on eToro, you are making an investment in the underlying asset. However, there are a few caveats to this. Users of eToro Australia are actually purchasing a CFD (contract for differences) when buying a stock on eToro.
If you’re using eToro to buy stocks that are listed on Borsa Italiana, Helsinki Stock Exchange, Stockholm Stock Exchange or Oslo Stock Exchange, you are also actually purchasing a CFD.
When using CFDs, you are getting exposure to the underlying asset’s price movements, but don’t actually own the asset itself.
Now, we’re ready to get on with our step-by-step guide on how to get started with trading stocks on eToro.
What is copy trading on eToro?
eToro bills itself as a “social trading” platform, and these social features give eToro an unique dimension compared to most other online trading platforms. eToro’s copy trading feature lets you copy the trades made by other eToro users.
You can access this feature by heading over to the “Copy People” section in the navigation bar. The different traders that you can copy are sorted by risk level, so you can choose how risky of a trading strategy you’re comfortable with.
For each trader, you can see detailed statistics on how they have performed in a selected trade period and the changes they’ve made to their portfolio. You can copy up to 100 different traders at once. The minimum amount you can invest in a single trader is $200.
Trading stocks on eToro
Of course, eToro offers plenty of other stocks for trading in addition to AAPL. The company offers around 800 different stocks listed on a variety of global stock exchanges. Here's a few examples of the stocks you can buy on eToro:
The bottom line on buying Apple (AAPL) stock on eToro
If you want to invest in Apple stock through an online platform, eToro is certainly worth checking out. The platform offers an extensive suite of features while providing an intuitive and beginner-friendly user interface at the same time. Not only does the platform allow you to trade traditional financial instruments like stocks, ETFs and indices, but you can also trade cryptocurrency on eToro.
The copy trading feature is also great for users who would like to invest in a diversified portfolio of stocks, but would rather leave the exact composition of the portfolio to a more experienced investor.
Your capital is at risk. Other fees may apply. For more information, visit etoro.com/trading/fees. | AAPL | 185.55 |
https://9to5mac.com/2020/03/19/5g-iphone-12-fall-release-coronavirus/ | Bloomberg: 5G iPhone 12 still on track for fall release despite ... | AAPL Company. Breaking news from Cupertino. We'll give you t… COVID-19... | Mar 19, 2020 | 9to5Mac | Even though Apple has reopened its retail stores in China, many of its supply chain operations are still in flux. A new report from Bloomberg details some of those struggles, but says the 5G iPhone 12 is still on track for this fall.
Citing anonymous sources, the report explains that as of right now, the next flagship iPhones with 5G capabilities are “still on schedule to launch in the fall.” Mass production, however, isn’t slated to begin until May, so delays could still materialize once that process begins.
On the flip side, Apple this week unveiled a new iPad Pro and MacBook Air, but production of these devices “likely started in early January, before the worst effects of China’s virus lockdown.” The report does suggest that delays are the reason the Magic Keyboard for iPad Pro isn’t shipping until May.
Even though the iPhone 12 is on track, one source told Bloomberg that Apple’s supply chain is still not moving at its normal pace due to a slow down in component shipments:
One person who works in Apple’s supply chain said not all operations are moving at normal speed because the flow of components to assemble is still slow. It will take another month or more to get parts moving steadily through the system, the person added.
For example, key Apple suppliers in Malaysia have halted production due to a two-week lockdown in the country because of COVID-19. Apple suppliers and teams in other countries, including South Korea, the UK, United States, Italy, and Germany have also been affected.
In the United States, Apple relies on Broadcom for wireless chips, but Broadcom CEO Hock Tan has already said that COVID-19 “is going to have an impact on our semiconductor business, in particular in the second half of the fiscal year.”
But despite many of these constraints, Apple was able to build test versions of the iPhone 12 last month:
These struggles have yet to severely derail the 5G iPhone launch in the fall. During China’s factory shutdown in February, Apple was able to build a limited number of test versions of the new models, one of the people familiar with the company’s supply chain said.
Apple finalizes the majority of design features for new iPhones between November and December of the year prior to launch, the people said. It begins mass-producing new casings around April and then starts a late manufacturing stage called Final Assembly, Test and Pack in about May.
You can read the full report at Bloomberg.
FTC: We use income earning auto affiliate links. More.
Comments | AAPL | 185.55 |
https://www.reuters.com/article/us-health-coronavirus-apple-idUSKBN2170DS | Apple limits online iPhone purchases to two per person amid ... | SHANGHAI (Reuters) - Apple Inc AAPL.O is limiting customer purchases of
iPhones over its online stores in many countries including the United
States and... | Mar 19, 2020 | Reuters | SHANGHAI (Reuters) - Apple Inc AAPL.O is limiting customer purchases of iPhones over its online stores in many countries including the United States and China to a maximum of two handsets per person, checks on its website on Friday revealed.
The purchase caps come just after the hardware maker closed all of its brick-and-mortar stores outside China, as the coronavirus spreads globally and forces lockdowns and limitations on public movement to contain it.
Checks on Apple’s website reveal that in numerous countries, a drop-down menu prevents customers from buying more than two of the same model iPhone, across all models. The last time it did so was in 2007, when the iPhone was first introduced, to stop people from reselling them.
In mainland China, Hong Kong, and Taiwan, and Singapore, a message appears above iPhone listings informing customers that purchases will be limited to two devices per order.
Apple declined to comment.
The purchase limits come as Apple braces for a blow due to the coronavirus’ impact on sales, both due to supply chain disruptions and weak demand.
As the illness swept China, Apple closed all of its brick-and-mortar retail outlets in the country, only reopening all of them by March 13. Foxconn 2317.TW, its most important manufacturing partner, temporarily halted operations, though founder Terry Gou has said that production has now returned to normal.
In February, Apple CEO Tim Cook wrote a letter warning investors the company would unlikely meet its initial revenue projections for the its calendar Q1 earnings guidance due to the virus.
Now, while China’s factories have resumed operations, Apple and other hardware companies face weakening demand as the countries around the world shutter retail stores and enforce social distancing.
The coronavirus, which originated in China in late December, has since spread to 178 countries, infecting over 240,000 and killing about 10,000 globally.
On March 13, Apple announced that all of its Apple Stores outside of China would shut down to fight the spread of the virus.
According to Nicole Peng, who tracks the smartphone sector at research firm Canalys, Apple is likely limiting online orders to prevent scalpers from stockpiling devices and re-selling them on the grey market.
“This happened in the past in Asia when there is a new iPhone launch and scalpers saw an opportunity to sell to mainland China, where the new phones were harder to buy at the time,” she said.
“Now that stores all over the world are closed, online scalpers see a similar opportunity.”
Reporting by Josh Horwitz and Brenda Goh; Additional reporting by Krystal Hu in New York; Editing by Kim Coghill
Our Standards: The Thomson Reuters Trust Principles. | AAPL | 185.55 |
https://investorplace.com/2020/03/cheaper-price-ericsson-stock-attractive/ | At These Cheaper Prices, Ericsson Stock Is Even More Attractive | Consumers with lower disposable income are less likely to upgrade to 5G
phones from the likes of Apple (NASDAQ:AAPL). That, in turn, could lead
mobile... | Mar 18, 2020 | InvestorPlace | Investors making the case that this broad market sell-off has gone too far can point to 5G (fifth-generation) wireless stocks like Ericsson (NASDAQ:ERIC) as evidence. Nothing really has changed in terms of the long-term outlook for the industry. Yet Ericsson stock, and its peers, have been hammered.
Even after a 12% bounce on Friday, ERIC is down 24% from where it traded on Feb. 12. Rival Nokia (NYSE:NOK) has declined 38% over the same stretch. Qualcomm (NASDAQ:QCOM) is off 17%, and Cisco Systems (NASDAQ:CSCO) 25%.
There’s been no real news to support those declines. In fact, there’s been no real news at all.
Cisco did report earnings after the close on Feb. 12, but the report and forward guidance both were basically in line with expectations. Nokia’s chief executive officer stepped down earlier this month, but after years of poor execution, that’s hardly a negative development.
The rising risk of a global recession presumably could have a fundamental impact. Consumers with lower disposable income are less likely to upgrade to 5G phones from the likes of Apple (NASDAQ:AAPL). That, in turn, could lead mobile operators to slow 5G rollouts.
But in that scenario, it’s QCOM stock that should underperform, rather than ERIC and NOK. Qualcomm, after all, has direct exposure to handset unit sales.
And even delayed spending by operators on 5G equipment hardly suggests a one-fourth haircut to the Ericsson stock price. It’s not as if 5G deployments will be canceled.
On the whole, these stocks simply don’t look all that much different in mid-March than they did in mid-January. Given that they looked cheap then, and that I argued last month that Ericsson stock is the best play on 5G, I see the opportunity in ERIC as only more attractive.
Three Reasons for Optimism
Again, not all that much has changed since Ericsson reported fourth-quarter earnings in January. But there have been a few pieces of somewhat minor news that, taken together, provide some support for the bull case.
First, at least relative to Nokia, Ericsson has an apparent early lead in 5G deployments. Ericsson said in a presentation earlier this month that it had 81 5G agreements with wireless network operators. Nokia, in its fourth-quarter release in early February, cited 66 such deals.
To be sure, both companies are dealing with intense competition from China’s Huawei. That firm has managed to grow despite pressure from the U.S. government. But in 5G, Ericsson has managed to carve out 37% market share globally, according to this month’s presentation.
Second, Ericsson announced along with its annual report that it planned to increase its dividend by 50%. On Mar. 31, shareholders will vote to approve a dividend of 1.50 SEK ($0.15), paid in April and October.
Even with ERIC stock down amid this sell-off, that dividend doesn’t exactly make Ericsson an income darling. But it will yield over 2% this year — hardly immaterial at a time when the 10-year Treasury bond yields less than 1%. And the hike comes only a few months after Nokia had to eliminate its own dividend after disappointing results. (Nokia is hoping to restore the payout, potentially by the end of this year.)
Ericsson Stock Gets Cheaper
The third reason to be more bullish on ERIC is simply that the stock is cheaper. The 25% haircut means that even after Friday’s bounce, the fundamentals here look attractive.
Wall Street expects earnings per share of 51 cents in 2020, which looks roughly in line with the company’s guidance given with Q4 results in January. That estimate values ERIC at less than 14x earnings this year.
But growth shouldn’t suddenly end. Ericsson has guided for operating margins to reach 12-14% against a sub-10% figure in 2019. Revenue should grow along with 5G deployments as well. Wall Street expects 18% profit growth in 2021 — and Ericsson stock trades at less than 12x current consensus EPS for 2021.
That is an attractive multiple for a company driving that kind of growth. And it’s not as if the 5G tailwind suddenly fades. Ericsson forecasts that by 2025, only 55-65% of the world population will be covered by 5G. Equipment deployments for the new technology thus are going to persist for basically this entire decade.
To be sure, some of those sales are going to ‘cannibalize’ current sales of 4G equipment. Still, on a net basis, 5G is going to be a tailwind for Ericsson for years to come. At less than 12x forward earnings, Ericsson stock certainly is not priced as such.
Buy the Dip in Ericsson Stock
And so ERIC looks like one of the more attractive opportunities created by this sell-off. Coronavirus concerns simply are not going to have a material impact; Ericsson itself said just three weeks ago that it hadn’t seen any material effect on first-quarter results.
The stock is cheap. The balance sheet is in excellent shape, with cash net of debt equal to about $1 per share. The dividend hike shows increasing confidence from the board of directors. Nokia’s own figures show that Ericsson has the early lead in 5G.
This simply looks like a good business at an excellent price. And it looks like a better stock than it was just a few weeks ago — even disregarding the fact that it’s a cheaper stock, too. Add it up, and ERIC remains a buy, and remains the best play out there on 5G growth.
Vince Martin has covered the financial industry for close to a decade for InvestorPlace.com and other outlets. He has no positions in any securities mentioned. | AAPL | 185.55 |
https://www.trefis.com/stock/el/articles/460114/what-to-expect-from-estee-lauders-q2/2019-02-04 | What To Expect From Estee Lauder's Q2 | ABBV logo. Should You Pick AbbVie Stock Over LLY? Latest Analysis. Better
Bet Than EL Stock: Pay Less Than Estee Lauder To Get More From Stocks VRTX,
FDX,... | Feb 4, 2019 | Trefis | What To Expect From Estee Lauder’s Q2
Estee Lauder (NYSE:EL) is scheduled to release its Q2 fiscal 2019 results on February 5. It has had a robust 2018, primarily driven by strong performance in its Skin Care and Makeup segments and the same growth momentum continued in its Q1 2019 earnings. During Q1, the company reported a 8% jump in sales to $3.52 billion from $3.27 billion in the same period last year, and diluted net earnings per common share increased 17% to $1.34. This growth was driven by strong performance in the skin care segment globally, growth from online and travel retail segments, and emerging markets particularly Asia / Pacific region (esp. China). The performance this quarter reflected robust global demand across their portfolio, with virtually all their brands posting sales growth. Each of its biggest brands, including MAC, La Mer, Tom Ford, and Origins, grew globally, with exceptional growth in Estée Lauder.
Driven by this strong Q1 performance and exciting upcoming launches and programs, Estee Lauder has forecast growth in its Q2 2019 sales to increase between the band of 8% – 9% (Excluding a 2% impact from currency translation and a 2% impact from the adoption of ASC 606) and net earnings per share between $1.47 and $1.50. The continued emphasis on a “digital-first” approach and on fast-growing markets and channels is also expected to contribute to the company’s growth. Please refer to our dashboard analysis on What To Expect From Estee Lauder’s Q2 Earnings.
- Cross-Sector Comparison: Is Estee Lauder A Better Pick Over LLY Stock?
- What’s Next For Estee Lauder Stock After A 17% Fall In A Month?
- Should You Buy Estee Lauder Stock After A 36% Decline Since 2021?
- Here’s How Estee Lauder Stock Has Managed To Outperform The S&P Since 2018
- Estee Lauder Stock Looks Set To Bounce Back From A 13% Drop Last Month
- Estee Lauder Stock: Up 1.85x Since 2018 Due To Rising Investor Expectations
Listed below are key drivers that we believe will continue to steer Estee Lauder’s growth this Q2 and for full year 2019:
Skin care and Make up segments will continue to drive sales – These segments will likely continue to post strong performance in the coming quarters. The skin care segment posted 17% growth in sales in the Q1. Going forward, its skin care segment’s exceptional performance will be driven by strong innovations, increasing demand from younger consumers, and gains from its hero products: Estée Lauder, La Mer, Origins, and Clinique brands. Driven by continued success of the recent launches — Advanced Night Repair Eye Concentrate Matrix — the Estee Lauder brand is likely to witness strong growth from China and travel retail. Apart from skin care, Estee Lauder’s recent acquisition of high-end fragrance and lifestyle brands will aid its growth.
The makeup segment will witness increased sales as a result of the acquisitions of Too Faced and BECCA from the previous fiscal year. Its 2% growth in Q1 was driven by strong performance from brands such as Estée Lauder and Tom Ford, Too Faced, BECCA, and La Mer.
Growth in online & travel retail – Growth in the travel retail business is a major driving factor for Estee Lauder. During Q1 2019, travel retail sales continued to accelerate backed by broad-based growth across countries and brands. Currently, the channel continues to benefit from a unique product range, impressive marketing strategies, higher conversions through better customer insights, and ongoing strong passenger traffic growth in the emerging markets. Driven by rising income levels and increasing disposable income in these markets, passengers in these markets are increasingly turning into buyers. This trend is likely to keep the company’s travel retail sales soaring for Q2 and further in 2019.
Asia-Pacific region to continue to boost the sales – In the previous quarter, sales from the Asia-Pacific region led to a 24% rise in its top-line growth. Europe, Middle-East and Africa also saw sales rise by 14%. We anticipate rising disposable incomes in the Asia-Pacific markets (especially China) to continue to boost the company’s sales and contribute to its top-line. Management thus anticipates continued strength from sales of luxury products, prompting it to continue to invest in these regions.
EL’s growth drivers and aggressive growth strategies for coping with changing consumer preferences will continue to help it in maintaining its dominance in the beauty market. The company has successfully expanded its online business footprint in about 40 countries. It plans to continue boosting sales in this channel by adding new sites and expanding retailer distributions. The investment in DECIEM, a fast-growing multi-brand company, is further likely to aid EL’s beauty sales.
In all, we expect Estee Lauder to continue its growth momentum in the coming earnings and in the remainder of FY 2019.
What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs
For CFOs and Finance Teams | Product, R&D, and Marketing Teams
Like our charts? Explore example interactive dashboards and create your own. | ABBV | 137.3 |
https://www.mercadoeeventos.com.br/noticias/servicos/unedestino-academia-lanca-revista-reflexao-e-analise/ | Unedestinos Academia lança Revista Reflexão e Análise | ABBV promove seminário neste fim de semana em São Paulo. 01/04/2023. Fórum
de Meio Ambiente registra avanços na despoluição de lagoas da Zona Oeste do
RJ. | Feb 4, 2019 | M&E | Mercado e Eventos | A Unedestinos – União Nacional de CVBs e Entidades de Destinos acaba de publicar a Revista Reflexão e Análise, que conta com a participação de consultores técnicos especializados e referências no setor.
A revista é mais uma das frentes para a divulgação de conteúdo nas mais diversas áreas do setor e de seus inúmeros segmentos, como academia, captação, promoção, marketing, tecnologia, feiras, comunicação e empreendedorismo.
Nesta publicação, cada especialista pôde explorar seu domínio em textos que passam por diferentes temas, como processo de sucessão, cidade criativa, buscadores digitais, turismo de negócios, bleasure, mercado de eventos, geração de receita, capacitação e economia.
Sob essa demanda, surge então a marca Unedestinos Academia, que passa a representar esta e as demais ações que buscam a capacitação e o nivelamento dos produtos e serviços oferecidos pelas Organizações de Visitors e de Conventions associados. A Unedestinos Academia terá papel fundamental na compilação, curadoria e divulgação do conteúdo gerado pelos membros associados, conselho e consultores.
Veja a publicação no link. | ABBV | 137.3 |
https://www.trefis.com/stock/atvi/articles/464139/here-are-activision-blizzards-key-sources-of-revenue/2019-03-29 | Here Are Activision Blizzard's Key Sources of Revenue | Latest Analysis · Better Bet Than ATVI Stock: Pay Less Than Activision
Blizzard To Get More From Stocks COST, MRK, ABBV, HD, PFE · Better Bet Than
ATVI Stock: Pay... | Mar 29, 2019 | Trefis | Here Are Activision Blizzard’s Key Sources of Revenue
Activision Blizzard (NASDAQ:ATVI) generates its revenues primarily from its Activision, Blizzard, and King segments, along with its distribution business. Below we share more information on these segments. We have created an interactive dashboard ~ What Are Activision Blizzard’s Key Sources of Revenue. Also, here is more Information Technology data.
Activision Revenues
- What’s Next For Activision Blizzard Stock After An 11% Fall Yesterday?
- Up 10% In A Month, Does Activision Blizzard Stock Have More Upside?
- What To Expect From Activision Blizzard’s Q4?
- What’s Next For Activision Blizzard Stock After FTC Plans To Block The Microsoft Acquisition?
- What’s Happening With Activision Blizzard Stock?
- What’s Next For Activision Blizzard Stock?
Activision segment includes console games from Activision such as Call of Duty, Destiny, and Skylanders.
- Revenues of $2.7 billion, representing 37% of the company’s total revenues in 2018.
- Added $277 million from 2015 to 2018 at a CAGR of a little under 4%.
- Revenue growth in the recent past was primarily led by the Call of Duty franchise.
- Call of Duty: Black Ops 4 units sold so far ~ 9.3 million.
- Next release for Call of Duty franchise is scheduled for Q4 2019.
- Expect revenue growth of $41 million or 1.5% in 2019 led by modest growth in Monthly active users (MAUs) and ARPU.
- MAUs ~ 49 million, and ARPU of $56 in 2018 grew at a CAGR (2015-2018) of 5%, and -1% respectively.
Blizzard Revenues
Blizzard’s portfolio of console games include franchises such as Overwatch, Diablo, World of Warcraft, and Hearthstone.
- The Blizzard segment revenues of $2.3 billion accounted for roughly 30% of the company’s total revenues in 2018.
- Added $687 million from 2015 to 2018 at a CAGR of 12%.
- The revenue growth in 2018 was led by World of Warcraft franchise.
- However, revenues will likely see a sharp decline in 2019, given that there is no release planned for World of Warcraft franchise.
- MAUs ~ 37 million, and ARPU of $62 in 2018 grew at a CAGR (2015-2018) of 20% and -4% respectively.
King Revenues
King’s casual mobile gaming portfolio includes games, such as Candy Crush, Farm Heroes, Pet Rescue, and Bubble Witch.
- King revenues of $2.1 billion accounted for a little under 30% of the company’s total revenues in 2018.
- Of late, it is benefiting from its new game ~ Candy Crush Friends.
- We expect the active user base to see growth in the coming quarters, led by the new launches in the Candy Crush franchise, and an uptick in advertising revenues.
- Monthly active users (MAUs) ~ 271 million, and ARPU of $8 in 2018 grew at a CAGR (2015-2018) of -14% and 29% respectively.
What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs
For CFOs and Finance Teams | Product, R&D, and Marketing Teams
Like our charts? Explore example interactive dashboards and create your own. | ABBV | 137.3 |
https://finance.yahoo.com/news/natalie-portman-bummed-poor-response-star-wars-prequels-185227642.html | Natalie Portman was 'bummed' out by the poor response to 'Star Wars'
prequels | (ABBV) and Honeywell International Inc. (HON). 7h ago. Investor's Business
Daily... | May 4, 2019 | Yahoo Finance | Natalie Portman was 'bummed' out by the poor response to 'Star Wars' prequels
Natalie Portman has opened up about the poor critical response to the Star Wars prequels, in which she played Padme Amidala across the trilogy.
“It was hard. It was a bummer because it felt like people were so excited about new ones and then to have people feel disappointed. Also to be at an age that I didn’t really understand that’s kind of the nature of the beast. When something has that much anticipation it can almost only disappoint.”
Read More: Natalie Portman plays an astronaut in existential crisis in first ‘Lucy in the Sky’ trailer
Portman was cast to play Amidala back in 1997 at the age of just 15, with The Phantom Menace eventually being released in May, 1999, to a tepid critical response.
The film still managed to gross over £780 million worldwide, while Portman reprised her role in 2002’s Attack Of The Clones and 2005’s Revenge Of The Sith, which grossed a combined total of over £1.1 billion, but were met with just as disappointing reviews.
But Portman told Empire that, in her opinion, time has been much kinder to the prequel trilogy.
“With the perspective of time, it’s been re-evaluated by a lot of people who actually really love them now. There’s a very avid group of people who think they’re the best ones now! I don’t have enough perspective to weigh in.”
But while Portman might have been disappointed by the poor reviews for the Star Wars prequels they certainly played their role in making her one of the most popular actresses of the last 20 years.
Read More: Natalie Portman says she was ‘unaware’ of whitewashing in new movie ‘Annihilation’
Not only did she pick up a Best Actress Oscar for her performance in Black Swan, but she was also a member of the Marvel Cinematic Universe, playing Jane Foster in Thor and Thor: The Dark World. She also popped up in Avengers: Endgame, too, however the directors of the film, The Russo Brothers, have now revealed that she didn’t actually film any new scenes for it.
“All she did new for this movie was —” started Anthony, before Joe added, “The voice.” Anthony then told EW, “A little bit of voice-over when she’s talking in the distance, that’s it.” | ABBV | 137.3 |
https://www.kiplinger.com/slideshow/investing/t018-s001-7-high-yield-dividend-stocks-with-more-to-give/index.html | 7 High-Yield Dividend Stocks With More to Give | Market value: $115.2 billion; Dividend yield: 5.4%; DIVCON rating: 4;
AbbVie (ABBV, $77.91) offers up one of the highest dividend yields in the... | May 10, 2019 | Kiplinger | 7 High-Yield Dividend Stocks With More to Give
Income investing can sometimes feel like a give-and-take situation.
Income investing can sometimes feel like a give-and-take situation. You can get red-hot dividend growth from stocks, but those stocks often start at paltry yields that take a while to plump up. But high-yield dividend stocks have their own problems – some high yields are a warning flare from troubled companies, and other high yields are safe but stuck in neutral.
But there are a few “Goldilocks” dividend stocks that offer just the right blend of ample current yield and the potential for income growth.
The DIVCON system from exchange-traded fund provider Reality Shares can, among other things, help identify already high-dividend stocks that have the financial wherewithal to keep pushing their payments higher. DIVCON’s dividend health methodology measures factors such as free cash flow, prior earnings growth and even bankruptcy risk to determine whether stocks are likely to increase their dividends – or even if they’re at risk of cutting them. The result is a rating between 1 and 5, with low ratings (1-2) indicating shaky dividends, and high ratings (4-5) indicating healthy payouts that likely will expand in the future.
Here are seven high-yield dividend stocks that DIVCON’s ratings suggest have a good likelihood of future rate increases.
Disclaimer
Price, market value and yield data is as of May 9. DIVCON ratings and measurement data such as earnings growth, levered free cash flow (LFCF)-to-dividend ratio and Altman Z-score is as of May 1. Dividend yields are calculated by annualizing the most recent monthly payout and dividing by the share price. You can view other DIVCON ratings on the Reality Shares provider site.
Watsco
- Market value: $6.0 billion
- Dividend yield: 4.0%
- DIVCON rating: 4
- Watsco (WSO, $157.74) distributes air conditioning, heating and refrigeration equipment. It’s not the most scintillating business in the world, but it’s something everyone needs. And that built-in demand has helped the company (and its shares) improve steadily for years.
It does have an odd dividend history to contend with. In the final quarter of 2012, Watsco announced that despite a track record of more than 35 consecutive years of dividend increases and 11 consecutive annual dividend raises, the company would “continue to pay quarterly dividends, but on a more moderate basis beginning in 2013.” Watsco followed up by clipping its quarterly payout by nearly 60%, from 62 cents per share in 2012 to just 25 cents in 2013.
But at the same time it announced it would moderate payments, Watsco also announced a generous $5-per-share special dividend (its regular payouts that year totaled just $2.48). It then proceeded to start hiking its dividend again in 2013 (to 40 cents per share), and expanded its payout by 37.3% on average through last year. Watsco has bumped the dividend another 10% higher in 2019.
One concern: a payout ratio of 95% of this year’s projected earnings. But Watsco has seemed content to keep expanding its payout along with profits. On that front, WSO’s earnings have grown every year since 2014, by a cumulative 60%, and analysts expect average annual profit growth of 15% over the next half-decade.
Earnings growth is one of the strongest factors in Watsco’s DIVCON 4 rating, which indicates a company is “likely to increase their dividends in the next 12 months.” So is a high Altman Z-score. Altman Z uses five factors to measure a company’s credit strength, and any score above 3 indicates a low likelihood of bankruptcy; WSO scores a lofty 9.1.
Huntington Bancshares
- Market value: $14.2 billion
- Dividend yield: 4.0%
- DIVCON rating: 4
- Huntington Bancshares (HBAN, $13.58) is the holding company for The Huntington National Bank, which operates more than 950 branches across eight states, primarily in Ohio and Michigan. The large regional bank offers the typical array of services: savings/checking accounts, mortgages, small business lending and commercial loans, among others.
The bank has been a beacon of growth over the past few years. Net interest income (what revenues it brings in on products such as mortgages and commercial loans versus what it costs to service products such as savings accounts) has expanded by nearly 19% annually since 2014. Total profits have ballooned by almost 22% annually.
Huntington, like many other banks, did have to cut its dividend in the midst of the 2007-09 financial crisis and bear market; HBAN went from a 13.25-cent quarterly payout at the end of 2008 to a mere penny per share in 2009. But the dividend went back to growing in 2011, and the company even eclipsed its pre-crisis payout with a 27% hike to 14 cents per share last year.
When it comes to financial stocks, DIVCON steers away from Altman Z and instead looks at net income-to-total assets (NITA), a measure of how profitable its assets are. Huntington’s 1.3 score is close to the financial-sector average. The company also delivers far more of its cash in the form of repurchases rather than dividends, giving it plenty of wiggle room to reduce buybacks should HBAN want to get even more aggressive about its payout. And it's among 12 bank stocks that Wall Street loves the most.
International Paper
- Market value: $18.2 billion
- Dividend yield: 4.3%
- DIVCON rating: 4
- International Paper (IP, $45.71) might seem like a dinosaur considering that “going paperless” is a dominant trend in everything from managing an office to paying your bills. But while those trends aren’t great for IP’s paper business, the company is being bolstered by another trend – the rise of Amazon.com (AMZN) and e-commerce.
International Paper also is a major player in packaging products. And as consumers transition from in-store purchases they tote out in plastic bags to online purchases that are delivered to their door, International Paper is among the companies that benefit.
These and other trends have acted as checks against one another, leading to an up-and-down performance over the past decade that has disappointed shareholders with roughly breakeven returns. Moreover, analysts are looking for profitability to slip both this year and next – just a couple percent each year, but clearly the wrong direction.
But the potential for dividend growth remains healthy. The dividend has expanded by an average of 8.5% annually over the past half-decade, and International Paper still is only paying out about 46% of its profits in the form of dividends. It also spends more on buybacks than cash distributions, so if it needed to, it could pull the brakes on repurchases to focus even more on its regular dividend.
Exxon Mobil
- Market value: $324.8 billion
- Dividend yield: 4.3%
- DIVCON rating: 4
- Exxon Mobil (XOM, $76.77) is one of the world’s largest integrated energy companies, spanning every segment of the oil-and-gas “stream” – exploration/production, processing/transporting and refining/retailing. It’s one of the two energy components of the Dow Jones Industrial Average, and it’s also a member of the Dividend Aristocrats – 57 dividend stocks that have increased their annual payouts for at least 25 consecutive years.
Exxon renewed its membership for another year when it announced its 37th consecutive dividend raise in April. XOM boosted the payout 6.1% to 87 cents per share quarterly.
Exxon’s fates hinge on commodity prices, so typically higher is better, which is why XOM dropped like most other stocks when oil collapsed in 2014-15. But its refining operations, which can actually benefit from lower oil prices, help provide some buffer that many pure-play exploration-and-production companies don’t have. That, as well as Exxon’s sheer scale, have contributed to a seemingly bulletproof dividend that has grown through thick and thin.
XOM also boasts the highest Bloomberg Dividend Health reading (54.8) of all companies on this list, and its Altman Z-score of 3.9 is a promising sign of fundamental financial strength.
Simon Property Group
- Market value: $61.8 billion
- Dividend yield: 4.7%
- DIVCON rating: 4
- Simon Property Group (SPG, $173.77) is a real estate investment trust (REIT) that owns 206 retail properties in the U.S. – including 107 malls and 69 outlet malls – as well as 28 sites across Asia, Europe and Canada. In an age where Amazon.com is eating many brick-and-mortar retailers alive, Simon would seem to be an obvious shun.
And yet, Simon is arguably in better shape than it has ever been.
Simon spun off many of its strip malls and smaller malls into a separate company, Washington Prime Group (WPG), in 2014. The company also has been aggressive about redeveloping vacancies left by the likes of Macy’s (M) and Sears (SHLDQ), and even expanded its properties – 30 such projects were underway as of the quarter ended in March.
The result? Simon put together a record 2018 that included an 8.2% improvement in funds from operations (FFO) – a vital profitability metric for REITs that also helps determine dividend health. SPG followed that up with a strong first quarter that saw FFO climb 5.9%, and SPG affirmed 2019 estimates for another year of growth.
Simon’s full-year results also included a 2.5% improvement to the dividend – the company’s ninth quarterly payout hike since the beginning of 2015. That payout is well funded, too, at about 84% of its FFO from the past four quarters, which is healthy by REIT standards.
The company’s DIVCON 4 rating includes strong free-cash coverage of its payout, healthy earnings growth and stellar dividend-growth track record.
AbbVie
- Market value: $115.2 billion
- Dividend yield: 5.4%
- DIVCON rating: 4
- AbbVie (ABBV, $77.91) offers up one of the highest dividend yields in the pharmaceutical space and generally has been a strong dividend growth stock.
Many investors know AbbVie as the company behind blockbuster drug Humira, which can treat a number of ailments, including arthritis, Crohn’s disease, plaque psoriasis and ulcerative colitis. However, it’s been worries about Humira that have mostly steered the ship of late – the stock is down more than 20% over the past year as part of its European patent protection expired, and as it stares down other patent expirations a few years down the road.
That said, the company still boasts other strong drugs including cancer treatement Imbruvica and endometriosis-pain drug Orilissa. AbbVie also has a strong pipeline that includes upadacitinib (in late-stage trials to treat rheumatoid arthritis), and it recently celebrated FDA approval for Skyrizi for moderate to severe plaque psoriasis.
AbbVie is royalty among dividend stocks, hiking its payout 11.4% earlier this year to mark its 47th consecutive payout increase, which includes the many decades before its split from Abbott Laboratories (ABT). That raise followed two dividend hikes in 2018.
But ABBV isn’t overstretching to reward shareholders. The company is paying out less than half of its profits in the form of dividends, and DIVCON shows that its dividend is covered more than twice over by leveraged free cash flow. It also has a healthy Altman Z-score of 3.8 that serves as further proof of the company’s strong financial foundation.
Six Flags Entertainment
- Market value: $4.6 billion
- Dividend yield: 6.2%
- DIVCON rating: 4
- Six Flags Entertainment (SIX, $55.14) is the No. 2 amusement park operator in the world, behind only Walt Disney (DIS). The company boasts 26 parks across the U.S., Mexico and Canada, with plans to expand in China.
Unfortunately, those plans have hit a speed bump. Six Flags announced earlier this year that it expected its first high-end parks to open in mid- to late 2020 instead of this year. It also pushed back other parks from 2020 to 2021. Moreover, excitement about these parks’ potential have cooled off thanks to the country’s GDP growth deceleration and the weight of the U.S.-Chinese trade conflict.
The good news is, analysts still expect the company to extend a long streak of annual revenue growth, not just this year but next. Those same pros see profits pulling back in 2019, but rebounding somewhat in 2020 as those Chinese parks begin to open.
In the meanwhile, DIVCON gives Six Flags a strong DIVCON rating of 4 that implies another dividend hike in the next 12 months is likely. Six Flags doesn’t have a long dividend history – its payout was initiated in 2010 – but it has upped the ante every year since 2011. And its levered free cash flow is enough to cover the payout, and then a little more.
Given the potential for a profit pullback in 2019, if Six Flags does raise its payout again within the next year, it might be a token increase. But Wall Street has seen a bright sign in the company’s performance during the typically slow first quarter, with B. Riley FBR and Oppenheimer analysts reiterating their “Buy” calls following Six Flag’s report.
Eric Ervin founded Reality Shares, a firm known for ETF industry innovation. He led the launch of investment analytics tools, including Blockchain Score™, a blockchain company evaluation system; DIVCON®, a dividend health analysis system; and the Guard Indicator, a directional market indicator. These tools were designed to help investors access innovative investment strategies as well as provide alternative dividend investment solutions to manage risk.
-
-
What Is the Bonus 'Guaranteed' Standard Deduction?
Legislation A proposed Republican tax cut package contains a 'bonus' of up to $4,000 for the current standard deduction. Could it help?
By Kelley R. Taylor • Published
-
Texas Sales Tax Relief Coming Soon Amid Property Tax Debate
State Tax Texas sales tax relief is just around the corner. Here are the items that will soon be tax-free in Texas.
By Katelyn Washington • Published
-
6 Dividend Growth ETFs to Buy
Dividend growth outperforms the market over time and helps portfolios beat inflation. These dividend growth ETFs give investors the chance to buy the strategy in bundles.
By Kyle Woodley • Published
-
Can Stocks Picked by Artificial Intelligence Beat the Market? 3 Stocks to Watch
stocks An artificial intelligence stock-picking platform identifying high-potential equities has been sharp in the past. Here are three of its top stocks to watch over the next few months.
By Dan Burrows • Published
-
Best Retirement Stocks to Buy Now
The best retirement stocks ideally have attractive dividends that can be sustained. This can lead to steady income and long-term value for retirees.
By Mark R. Hake, CFA • Published
-
Stock Market Today: Stocks Finish Mixed After Surprise OPEC+ Announcement
The Organization of the Petroleum Exporting Countries and its allies over the weekend announced a surprise cut to crude production.
By Karee Venema • Published
-
High Yields From High-Rate Lenders
Investors seeking out high yields can find them in high-rate lenders, non-bank lenders and a few financial REITs.
By Jeffrey R. Kosnett • Published
-
Time to Consider Foreign Bonds
In 2023, foreign bonds deserve a place on the fringes of a total-return-oriented fixed-income portfolio.
By Jeffrey R. Kosnett • Published
-
Best Defensive Stocks to Buy Now
Investors are concerned about the financial sector and the economy, but these best defensive stocks have risk-averse traits that can help calm those fears.
By Mark R. Hake, CFA • Published
-
5 Stocks to Sell or Avoid Now
stocks to sell In a difficult market like this, weak positions can get even weaker. Wall Street analysts believe these five stocks should be near the front of your sell list.
By Dan Burrows • Published | ABBV | 137.3 |
https://www.marketwatch.com/story/here-are-the-stocks-to-buy-if-an-all-out-us-china-trade-war-erupts-says-goldman-2019-05-08 | Here are the stocks to buy if an all-out U.S.-China trade war erupts, says
Goldman | ABBV. -0.25% · TMO. +2.88% · NVDA. -0.80%. As uncertainty over the outcome
of Sino-American trade talks grows, so does the possibility of... | May 14, 2019 | MarketWatch | As uncertainty over the outcome of Sino-American trade talks grows, so does the possibility of longer-than-expected negotiations or an all-out trade war.
On Monday, Chinese officials announced retaliatory tariffs against the U.S., announcing $60 billion in annual exports to China with new or expanded duties that could reach 25% on June 1. Hu Xijin, editor in chief of China’s Global Times, a daily Chinese tabloid with ties to the Communist Party, reported on Twitter Monday morning that China may take further steps in the coming days and weeks.
The moves by Beijing comes after the Trump administration on Friday raised tariffs on $200 billion of Chinese imports to 25% from 10%, the White House said it was ready to impose higher tariffs on another roughly $300 billion of goods, or nearly all the remaining products Americans buy from the second-largest economy.
See: ‘China has chosen to retreat’ — the U.S. view as negotiations reach critical juncture
Goldman’s analysts, led by chief equity strategist David Kostin, are recommending that investors target services firms, which they describe as less exposed to trade policy (including retaliatory moves) and have better corporate fundamentals, as a group that could help to insulate investors from tariff-fueled volatility.
Goldman expects companies within services to outperform those that provide goods, including consumer products and hardware, like iPhone maker Apple Inc. US:AAPL and Johnson & Johnson US:JNJ, for example. Shares of Apple have gained nearly 30% this year, while those for J&J are up 8.8%.
Here’s how Goldman describes their thinking around services:
|
|
Services stocks have less foreign input costs that might be subject to tariffs and are also less exposed to potential trade retaliation given they have less non-US sales exposure than Goods companies. Services stocks have faster sales and earnings growth, more stable gross margins, and stronger balance sheets. The relative valuation of Services vs. Goods is slightly elevated versus history.
The Goldman strategists go on to say:
|
|
Services stocks have faster sales and earnings growth, more stable gross margins, and stronger balance sheets. The relative valuation of Services vs. Goods is slightly elevated versus history.
The analysts say that within the services sector, software companies, media and entertainment names, and retailers and banks, could be solid investment bets.
Opinion: Greek bonds now yield less than Treasurys, and that’s as irrational as it was in 2007
More specifically, the bank spotlights Google-parent Alphabet Inc. US:GOOG US:GOOGL Microsoft Corp. US:MSFT, and Amazon.com Inc. US:AMZN as top names. Shares of Alphabet’s class A and C shares are up by about 13% so far this year, those for Microsoft are up 24%, while Amazon shares have climbed 28.4% over the same period.
Underlining their point, Goldman analysts included a chart showing the relative performance of services against returns for goods during periods of escalating U.S.-China trade tensions:
Here’s a fuller list of the largest companies in Goldman’s services group:
|Company||YTD RETURN|
|Facebook Inc. US:FB||44.7%|
|Berkshire Hathaway Inc. Cl B US:BRK||3.2%|
|JPMorgan Chase & Co. US:JPM||16.3%|
|Visa Inc. US:V||22.3%|
|Bank of America US:BAC||22%|
|Cisco Systems Inc. US:CSCO||24.3%|
|Verizon Communications Inc. US:VZ||0.5%|
|Walt Disney Co. US:DIS||23.4%|
|Home Depot Inc. US:HD||14%|
|Mastercard Inc. US:MA||30.6%|
|AT&T Inc. US:T||6.4%|
|UnitedHealth Group Inc. US:UNH||-3.6%|
|Wells Fargo & Co. US:WFC||2.4%|
|Comcast Corp. Cl A US:CMCSA||25.3%|
|Netflix Inc. US:NFLX||35.7%|
|Citigroup Inc. US:C||32%|
|McDonald’s Corp. US:MCD||12%|
|Source: Goldman Sachs and FactSet data|
Here’s a look at the top companies that fall in Goldman’s goods category:
|Company||YTD RETURN|
|Exxon Mobil Corp. US:XOM||13%|
|Procter & Gamble Co. US:PG||14.7%|
|Intel Corp.||7%|
|Pfizer Inc. US:PFE||-6.2%|
|Chevron Corp.||8.5%|
|Merck & Co. Inc. US:MRK||2.8%|
|Boeing Co. US:BA||11.3%|
|Coca-Cola Co. US:KO||1.4%|
|PepsiCo Inc. US:PEP||14.4%|
|Abbott Laboratories US:ABT||5.8%|
|Philip Morris International Inc. US:PM||25.8%|
|Honeywell International Inc. US:HON||29.2%|
|Broadcom Inc. US:AVGO||20.2%|
|Medtronic PLC US:MDT||-2%|
|AbbVie Inc. US:ABBV||-15%|
|United Technologies Corp. US:UTX||29.1%|
|Thermo Fisher Scientific Inc. US:TMO||21.6%|
|Nvidia Corp. US:NVDA||31.7%|
|Source: Goldman Sachs and FactSet data| | ABBV | 137.3 |
https://finance.yahoo.com/news/meghan-markle-surgery-woman-112545796.html | Meghan Markle fan has £23,000 worth of surgery to look like her royal idol | Today's Research Daily features new research reports on 16 major stocks,
including PepsiCo, Inc. (PEP), AbbVie Inc. (ABBV) and Honeywell
International Inc. | May 13, 2019 | Yahoo Finance | Meghan Markle fan has £23,000 worth of surgery to look like her royal idol
A woman has spent £23,000 on cosmetic surgery in a bid to look like Meghan Markle.
Tanya Ricardo, 30, had extensive surgical procedures on both her face and body in order to make her look more like the Duchess.
This included liposuction to transfer fat to her buttocks, fat grafts to her cheeks, further liposuction under the cheeks and chin, breast augmentation from a C-cup to a D-cup, lip fillers and other injectable treatments.
Ricardo, a land technician from Houston, Texas, says, even before her surgery, she has “always resembled” the Duchess – “We both have dark hair, big brown eyes and a structured fine nose”.
Now, she thinks her dramatic transformation takes the likeness one step further.
“But now that I had had a couple of surgeries on my face it accentuates her look on me even more [...] I see it in the shape of my face.”
READ MORE: Mum spends £28,000 to look like Barbie
“When people say they see the resemblance, which for me makes me feel like it was mission accomplished,” she adds.
Ricardo’s surgery on her breasts and buttocks was also inspired by Markle’s curvier frame.
Growing up, she was accused of having anorexia due to her slimness – which she says is natural.
“I have always been a very skinny girl, so I never really felt like I was a woman and surgery has been on my mind.
“People have teased me for my whole life, even to this day, they say things like ‘Eat a cheeseburger’ or they accuse me of having an eating disorder.
READ MORE: Woman dies after undergoing nose job
“This wasn’t and has never been the case, I eat and I love food.”
A single mother of one, it took turning 30 to motivate Ricardo to change the way she looked.
“I feel like a different person and happy, hopefully the negative comments will stop and won’t affect me.
“They transferred some of the extra baby fat in my stomach from pregnancy into my butt.
“I never had a but before, I felt like I never had curves when I was young so it’s great.
“I’ve not fully healed so haven’t seen myself full but my face and top half is great, I can’t wait to show it off at the beach.
READ MORE: Lip fillers advert banned
“My family were concerned initially because they always thought I was beautiful, but after seeing what a wonderful job Dr. Rose did they are happy too.”
She adds: “Now I’m ecstatic, I can’t wait to be able to hit the gym with extra weight in the right places and then I’ll be good to marry another Prince.”
Ricardo isn’t the first woman to spent tens of thousands on surgery to resemble the Duchess.
Earlier this year, Xochytl Greer, 36, underwent five and a half hours of cosmetic surgery to undergo a nose job, liposuction on her stomach and thighs and a buttock lift – all in the name of resembling Markle. | ABBV | 137.3 |
https://finance.yahoo.com/news/daisy-may-cooper-bin-bag-dress-baftas-095844934.html | Actress praised for wearing £5 bin bag dress to BAFTA TV Awards | Today's Research Daily features new research reports on 16 major stocks,
including PepsiCo, Inc. (PEP), AbbVie Inc. (ABBV) and Honeywell
International Inc. | May 13, 2019 | Yahoo Finance | Actress praised for wearing £5 bin bag dress to BAFTA TV Awards
Last night’s BAFTA TV Awards saw celebrities don their best fashion looks for the red carpet.
However, one actress used a totally different tactic to stand out.
‘This Country’ star Daisy May Cooper made a red carpet statement in a gown made from a bin bag.
“[I’m wearing] a sixteen litre bin bag…,” the star of the BBC Three mockumentary series told press at the event.
It cost "about £5", she added.
Cooper’s bin bag dress represented a lot more than just a zany departure from style norms.
The actress saved on her look so that she might donate money to the less fortunate.
"The reason I'm wearing this is if I wore a normal dress, that would cost a lot of money and I thought I'd donate that money to a local food bank and wear bin bags instead,” she explained.
Click below to see the best fashion from this year’s BAFTA TV awards:
Twitter users have praised Cooper for her unusual style and the charitable rationale behind it.
Be the Daisy May Cooper you need to see in the world https://t.co/EZdLnJ1VOA
— Mollie Goodfellow (@hansmollman) May 12, 2019
the fact that daisy may cooper turned up to #baftatv in a bin bag dress made by her mum and donated what she would have spent on a dress to a food bank... the definition of iconic pic.twitter.com/yKW1VoX55l
— liv🌜 (@ahumanmoon) May 12, 2019
Daisy May Cooper you're my idol for a lot of reasons but I'll add this one to the list while im there https://t.co/LZ1iJ6Yu6K
— Lucy Girling (@lucegirling) May 13, 2019
There is so much to love about this but top of my list is how gorgeously confident Daisy May Cooper is in her bin bag dress. Just wonderful. https://t.co/hgB2l8DclC
— Hannah Williams (@flamingnora) May 13, 2019
Bloody brilliant ... what a superb thing to do ... ❤️
— Deb (@Flowermumm) May 12, 2019
Brilliant from Daisy May.
Other celebrities and the media should take note. #BAFTATV
— stroller (@nigeynugs) May 12, 2019
This isn’t the first out-there red carpet ensemble Cooper has worn.
At last year’s BAFTA TV Awards, she wore an asymmetric red dress fashioned from a Swindon football shirt. | ABBV | 137.3 |
https://www.andrezadicaeindica.com.br/quantos-custam-os-produtos-nas-lojas-da-disney-com-video.html | Quanto custam os produtos nas lojas da Disney (com vídeo) | footer-selo-abbv footer-selo-rbbv footer-selo-plagio. © Andreza Dica e
Indica Disney. Todos os direitos reservados. Direitos autorais: todos os
textos deste... | May 27, 2019 | Andreza Dica e Indica Disney | No nosso último post/vídeo sobre as 5 melhores lojas do Magic Kingdom, muita gente nos pediu para ver preços dos produtos vendidos nas lojas da Disney. E eu fiquei meio que numa sinuca de bico, pois os preços dos produtos variam muito. Às vezes um mesmo tipo de produto tem muita variação de preço; pode custa 2, 3 vezes mais.Então tivemos a ideia de fazer um vídeo exatamente sobre isso: preço dos produtos da Disney.
Nós vamos deixar aqui o vídeo completo que gravamos na World of Disney em Disney Springs e mostramos a seleção de 10 tipos de produtos, mostrando como eles podem variar. Não deixe de seguir nosso canal no Youtube, pois semanalmente temos vídeos novos.
Nesse vídeo você vai ver preços dos seguintes produtos Disney:
- camisetas
- chaveiros
- orelhas da Minnie
- bonés
- lápis e canetas
- pelúcias
- vestidos de princesas
- canecas
- porta-retrato
- bolsas
Preços dos produtos Disney
Nós mostramos, por exemplo que uma camiseta pode ter variação de mais de 100% comparada a outra. As pelúcias variam de US$19,99 a US$69,99. E as canetas podem variar mais de 1000%.
Já as orelhas da Minnie são praticamente tabeladas, a menos que seja alguma especial e edição limitada, então não tem muito o que pesquisar.
Mas veja no vídeo como são as variedades de preços para entender do que estamos falando. Vale dar uma bela olhada nos valores dos itens antes de escolher uma lembrancinha. É claro que alguns, mesmo sendo mais caros, são irresistíveis, mas se não se encantou por nada específico, procure os itens mais em conta.
E lembre-se: não deixe de ver o nosso vídeo com os valores dos produtos Disney na loja. | ABBV | 137.3 |
https://www.thepharmaletter.com/article/abbvie-builds-on-skyrizi-data-with-wdc-findings | AbbVie builds on Skyrizi data with WCD findings | US drugmaker AbbVie's (NYSE: ABBV) hopes that Skyrizi (risankizumab) will
help to replace revenues lost when Humira (adalimumab) competition starts
to bite,... | Jun 11, 2019 | The Pharma Letter | 11-06-2019 Print
US drugmaker AbbVie’s (NYSE: ABBV) hopes that Skyrizi (risankizumab) will help to replace revenues lost when Humira (adalimumab) competition starts to bite, have been boosted further.
The company has announced new two-year data on its use in plaque psoriasis at the World Congress of Dermatology (WCD).
Findings show that Skyrizi can not only offer skin clearance at two years of treatment for the majority of patients, but re-treatment complete following…
This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.
Free
7 day trial access
• All the news that moves the needle in pharma and biotech.
• Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
• Receive The Pharma Letter daily news bulletin, free forever.
£820
or £77 per month
• Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
• Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
• Daily roundup of key events in pharma and biotech.
• Monthly in-depth briefings on Boardroom appointments and M&A news.
• Choose from a cost-effective annual package or a flexible monthly subscription.
Chairman, Sanofi Aventis UK
AbbVieBiotechnologyBoehringer IngelheimConferencesDermatologicalsDrug TrialInflammatory diseasesResearchSkyriziUSAWCD | ABBV | 137.3 |
End of preview. Expand
in Dataset Viewer.
- Downloads last month
- 12