US small mid cap stocks with secular growth, good ROE (ROCE)

Yes they are very much long term plays for me. Riskier (maybe) but both in extremely good hands and huge potential.

 

Any views on Bank of Internet ?

 

@darth...I am not challenging your views...it is not my intention to do so..however since this is a forum where we discuss stocks I thought presenting accurate and relevant information is the key..which will help investors make informed decisions...we all know that Iphone has driven the success of Apple but that does not mean Apple is only Iphone:

1. MacBook is pretty solid brand and has great market penetration. The sales continue to be good. So is Ipad. Both are products which have great reputation in the market.
2. Smartwatch and Apple TV have been launched to very positive reviews. Soon they are expected to have deeper market penetration.
3. Finally its easy to say one smartphone will bring the company down. The critics have waited and waited to find flaws in Iphone, they are still waiting. Google, Microsoft, Samsung, LG, Sony and almost every tech company worth anything has tried everything but none have come even close to replicating Apple's success.

I agree that Apple will not provide super normal returns because it has already grown so big. Having said it has the largest cash reserve in the world, and products which enjoy virtual monopoly in the market. With several potential untapped or under penetrated markets.

Through dividends and buyback the company is sharing its profit with shareholders. That is the hallmark of corporate governance.

I agree with you that proclaimed understanding of any company is challenging. One probably would have to do a thorough audit of the company, both technical and financial, which is practically impossible. Hence analysts rely on disclosures by company, and market, industry, and global developments.

 

Hi,

Good to have fellas like you in here. Possibilities of some meaningful debates / discussions just come to the fore. ( but hey maybe I might prefer this shifting to an offline discussion depending on how it progresses). And so please treat as just a debate : no winners or loosers ok.

Actually I said Apple is Iphone. Probably different from Apple is not just Iphone ( thus requiring the need to specify the other products and services too)

I say Apple is Iphone because the latest revenue distribution is
iPhone - 68%
Mac. - 9%
ipad - 9%
services - 8%
Others - 6%
And

iPhones contribution to bottomline would probably be ~75-80%

Some other interesting facts

I - latest ie Q1 Fiscal 16 : QoQ variance

iPhone : 1%
Mac.: -3%
ipad : -27%
services : 26%
Others : 62%. ( impact of iWatch)
Overall : 1.5%

II - $100 of non US dollar revenues in q4 14 is worth $85 today and USD strengthening and currency wars will continue. International sales account for 66% of Q1 sales

III - QoQ flat despite a 14% growth in China ( negative in US and Japan)

IV - Q2 guidance : Revenue 50-53bln, Operating margin 39% . Q22015 : revenues ~58bln. So best case 8% down and about 170bps down on gross margins. Probably sandbagging?? I dont know

V- $153 done out of the $200bln buy back program. Has it produced the desired results? Some say No ( probably share price appreciation not seen). Not questioning Corporate Goverance. But good Corp Governance of buy buy not yielding the desired results

Why does Apple suddenly go bullish on India? Late to realise potential or is it that they now clearly feel the need to have other deep markets

Quote " Google, Microsoft, Samsung, LG, Sony and almost every tech company worth anything has tried everything but none have come even close to replicating Apple's success " end of Quote
to this I would like to quote from a famous Emily Dickinson poem " Success is counted sweetest " and it goes like this

Success is counted sweetest
By those who ne'er succeed.
To comprehend a nectar
Requires sorest need.

PS : BTW I have been keenly following your stock reco's thread.

 

Thank you and to be honest I have no money to buy any of Apple products be it Iphone, MacBook, Ipad, Iwatch or the Apple TV. And I cannot buy Apple shares as it is too complicated. Also too expensive in INR , I guess. Hence there is no need to debate.

But it is still a great stock. And that is the reason why it is one most widely held stocks by fund managers in the US. Thanks for following my thread. I hope to keep adding new stocks to the list. I like the first two lines of your poem. The desire of something is most when you do not have it.. What is meaning of the next two lines? "To comprehend a nectar, Requires sorest need.

 

Ahead of Google, Microsoft, and Amazon

https://www.businessinsider.in/The-...unds-love-most/4-Apple/slideshow/49862994.cms

 

Firstly I have no literature background. But

The poetness probably follows up the 1st two lines with a example.

Nector : a drink of the Gods, probably used to represent success. Sorest need : acute desire.

So the lines could be read as : to really understand the meaning of success ( or what success means to one) requires the person to have a strong desire for it.

Like the importance and understanding thereof of water and what it means to the desert habitats is much more and better than that of by the river habitats

This is my take on it.

 

Your take on it ? Do you understand the meaning or not ? So I conclude you just wrote to argue that my points on Apple's success are wrong. I wrote pretty well known and fair points. Not to prove anybody right or wrong but just to present facts as they are. To be of help to the common retail investor.

I have started a post where I suggest undervalued high quality stocks. One of the reasons why I did not want debate on that thread was in fear of people like you actually writing irrelevant information to take the focus away from information which can benefit retail investors looking to invest their hard earned money in stocks and gaining from it. That I believe is the whole purpose of this blog. I am being polite this time. Next time I may reply in a harsher tone regardless of the consequences.

 

All this is beyond my understanding. Too deep

 

Dont worry, you are not alone on this one

 

Not the first time am saying this : the best thing to do in here is ' state your point and move on after a while"

I stated my point, how you take it is upto you. If you think my point is irrelevant and takes focus away, and whats only relevant is only the "fair and pretty well known points" (about Apple's success and which I dont think I have disagreed to ) as they are for the benefit of the Common Retail Investors : So be it. It doesnt make a difference to me. Mine is for those who think there is merit in Apple's guidance and the unfolding scenario. And doesnt matter if there are none in here. Actually it'll be a suprise if I find one in this herd.

Now to your conclusion : that I Just wrote 'those lines' to argue that your points on Apple's 'success' are wrong; is so much out of line.

My original post is as follows

Quote " Google, Microsoft, Samsung, LG, Sony and almost every tech company worth anything has tried everything but none have come even close to replicating Apple's success " end of Quote

'To this' ( ie the above) I would like to quote from a famous Emily Dickinson poem " Success is counted sweetest " and it goes like this

"Success is counted sweetest
By those who ne'er succeed.".........

So its not about you or proving your points wrong, its about the Google, MS, and the other names you mention - to whom success is counted sweetest and in each of whom there is a sore desire to succeed - failed to topple Apple but certainly not given up on making that one phone to beat the iphone ( and which someone will certainly)

About it being my take : Yes, its my take and I know my take fits into the theme of the poem and the lines aptly convey the point i wanted to make ( about MS etc). And that is all that matter....

Do I get scared of harsher tones being unleased?
sometimes friends do the task of passing a common message, The message
" You cant hurt or upset a person who doesnt care"

And to the threat of unleasing harsher tones, once again I draw from a poem . This time from one by David Bates

Speak gently -- let not harsh words mar
The good we might do here!

Speak gently! -- 't is a little thing
Dropped in the heart's deep well;
The good, the joy, which it may bring,
Eternity shall tell.

Please do have your own take on these this time for now I move on ....

 

Problem is it goes out of fancy. E.g. new product by Samsung or new technology etc. But that is risk with all investment. At moment it has great product, good management, debt free and reasonable valuations.

 

I think misunderstanding has developed. We have to cool down. I think market state is creating tension. Again it is down heavily.

 

@ Srouta, Easier to understand Apple and its products, management, valuations etc etc than a Grade VI / Grade VII poem . Do let me know ( through personal message) if you want my take on it? No problems even if you dont.

 

Poem understanding requires refine skills which is not there in some. Only few can understand such fine things. Understanding Apple (or thinking of) is easier.

 

@srouta, you know what ... You are right about the poems bit.

Btw, where were you the last few days...

And you know I need to move on.... From this thread. So this is my last in here.

 

I was here only reading all posts. Mood was not there because of crash. Mood is best what market is in full green. Then words flow like Poem.

 

Read poems my friend... Eventually they will give you more and lasting peace than stocks. They are such gems. Some are Small, simple, yet with such deep meaning and beautifully written. Very inspiring too. Even this other poem about speaking gently is such a beautiful poem.

 

Thou were missed, Srouta.

While we're at poetry, I'd like to quote Shakespeare -

"There is nothing either good or bad, but thinking makes it so".

"Tempt not a desperate man".

 

Please start a separate thread on Poems. Besides stocks, we may learn abt Poems as well.