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How many close their eyes and just buy apple
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Kind makes you feel that Cortland Apple is really a crab-apple.
Another reason to invest in real assets like real estate over stocks.
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Thanks to an accounting- rule change for which it lobbied, Apple gets to book revenue from sales of bundled products such as iPhones -- which include hardware, software, services and upgrade rights -- more quickly than it used to. In short, one reason Apple’s earnings have been so high is accounting inflation, and the market realizes this.
Restated Numbers

The easiest way to see the rule change’s impact is to look back at the two sets of numbers Apple reported for fiscal 2009. Originally, the company said it had $5.7 billion of net income for the year on $36.5 billion of revenue. Then in January 2010 Apple retroactively adopted the new accounting principles and restated its previous numbers. The restatement boosted Apple’s fiscal 2009 net income 44 percent to $8.2 billion. Revenue was revised to $42.9 billion, 17 percent higher than originally reported.

Nothing changed economically, of course. Only the accounting did. On the surface, though, Apple’s valuation looked cheaper under the new reporting regime than under the old one.

he FASB rule change had two main parts. One related to so- called multiple-deliverable arrangements, while another covered software sales. When Apple sells an iPhone, for example, the hardware and software are delivered at the time of sale. Other deliverables include the rights to future software upgrades and other features.

The old accounting rules required Apple to defer large chunks of its revenue and recognize the amounts gradually over each product’s economic life. While the details are complicated, the gist under the new rules is that Apple is allowed to record more revenue upfront.

http://www.bloomberg.com/news/2012-02-17/apple-s-stock-may-not-be-as-cheap-as-it-looks-jonathan-weil.html

Many companies have been eagerly awaiting this rule change because they feel it more closely aligns their revenues with their costs. Apple, for example, has been at the forefront in pushing for these changes. Under the old rules, Apple had to recognize all iPhone revenue over a two-year period. These new revenue recognition changes now enable Apple to recognize the iPhone hardware revenue as soon as it is sold, while the revenue recognition for the software is based on an estimated value that is spread over the life of the iPhone. Apple early adopted in the first quarter of fiscal 2010 and the impact to their results was substantial. In fact, the adoption of the new accounting principles increased Apple's net sales by $6.4 billion, $5.0 billion and $572 million for 2009, 2008 and 2007, respectively.

http://www.netsuite.com/portal/resource/articles/eitf-08-01-best-practices-for-adoption.shtml

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RB, If apple owes future deliverables in connection with the sale, then I'm not so sure.

We missed the boat on APPLE. Someone on these boards who understands this stuff, let's talk Facebook. When GOOGLE closed at $90 I was thinking Yahoo etc...I had no idea what or could become. Is FB JUST a social media site or with all their loot will they buy/grow themselves into a mega media company.

Sorry if this sounds clueless....but after FB closes on that first day should I go in with guns blazing and buy the hell out of it. (:

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Keith, I doubt very many truly understand facebook, and there are some stories on how they count hits and whether those numbers are right.

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Don't take stock advice from a real estate forum.

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Dear Apple I'm leaving you.
http://www.edmundconway.com/2012/10/dear-apple-im-leaving-you/

And down $130 off the high just a month ago.

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Now officially off 20% from peak....

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$502 Now down 29% from peak

a lot of people own it around $420, so that's not an unresonable target. Earnings report is out Jan 23, so maybe buy in a few days and sell after report.

Actually $420 sounds reasonable. That puts it at around 15 p.e. if you average out 2010, 2011, & 2012(proj earnings numbers).

Apple (AAPL) this afternoon held a conference call with analysts to discuss its fiscal Q1 results, which featured revenue that slightly missed expectations, and profit per share that slightly beat analysts’ average estimate.

Shares are down $40.10, or almost 8%, at $473.01 $52.01, or over 10%, at $462.

http://blogs.barrons.com/techtraderdaily/2013/01/23/aapl-fyq1-conference-call-highest-iphone-growth-in-china/

AUCH! 10% down after hours... that HAS TO HURT. sorry longs :-(

> Another reason to invest in real assets like real estate over stocks.

Please real estate addicts: put absolutely everything you have & plan to make in the future on RE. it's your ONLY chance to strike it rich.

> Gooooddddaaammmmmit. I'll kill myself if my kids ending up sixpercenters!!!! Ugggggg.

same thing here bro, add to that one majoring in "creative writing" (studying how to become a zeropercenter)

> maybe buy in a few days and sell after report.

better not

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Over the past 12 months:

AT&T: up 17%
Verizon: up 17%
Sprint: up 152%

Since the close, all are down about 0.5%.

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Real Estate has less tail risk, unless of course you lever up too much.

>> Actually $420 sounds reasonable. That puts it at around 15 p.e. if you average out 2010, 2011, & 2012(proj earnings numbers).

It hit $420 today. Are you a buyer on it now?

No, Definitely not, but the price "is" more reasonable.

At what price are you a buyer?

I see, you are of the school there are no bad stocks, just bad prices.
Not a big fan of tech, but I suppose if the company were trading for less than the value of the cash held, I would reconsider.

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Yep, Not a buyer of tech in general. More in the value camp. However if someone were to buy apple here as opposed to six months ago, the bet would seem more reasonable. At this price/juncture, I think it's a question about how much apple can monetize it's tv idea. At book value, there are new reasons to buy.

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Thanks, RS. I have bought. At $145 cash plus $40-50 of current annualized earnings, good enough for me. More drop => more buy. We shall see...

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http://www.zerohedge.com/contributed/2013-05-27/apple-another-sony-talking-michael-whalen

MW: Ah, AAPL... it's pretty clear that their transition from being a innovation company to a company that manages the innovation they've already created is just about done. Look at their pipeline - it's all improved versions of what we have already got: lighter iPads, faster Macs and iPhones with more stuff. Beyond the endless rumors of a really expensive television, Tim Cooke's big idea seems to be AAPL moving from the hardware business to the information business – namely iCloud.

MW: I think AAPL's best play is to take what's left over cash from their very ill-advised stock buyback plan and to start BUYING technology companies. If they don't have the creative wherewithal to do it internally - they have the checkbook to make some serious strategic acquisitions. Here's idea #1: buy companies OUTSIDE of media, technology and entertainment.

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