There's another way to understand the Apple dividend and buyback. I don't think we should think of these actions as Apple trying to help out its shareholders. They have a massive pile of cash and they can't figure out anything to do with it all. I've been wrong about Apple for almost 400 points now, but I think this is when you get off the train. We'll see. I could be wrong for the next 400 points too.
mariusz said: BilldaCat said: mariusz said: BilldaCat said: KKD (Krispy Kreme) reports tomorrow night, options implying 7.7% move. Low compared to recent moves. Looking into this one closer.
KKD is still alive? I thought they were bankrupt. KKD was a high flier back in the day..... valuations were insane!!! Then reality set in.
yeah. They were off my radar until I saw a tweet this morning about earnings .. last I saw the stock it was at like 60 or so. Now it's at 8.26. It's run up a bit, started the year around 6.5.
the P/E is like 27. Initially liked picking up calls here but I may just stay away.
Spreads are rather large..... unless volume is decent, then you can try getting filled at the bid.... otherwise seems pointless
agreed.. the lack of volume too is just a concern for me, as is getting involved in single digit stocks, has rarely worked out in my favor. going to pass on this one. (this means everyone else should buy)
ADBE reports tonight too, looking into it, but the calls seem a little pricey.
Does anyone know how capital gains/wash sale work on options- I have some 2013 Leaps that I have held for 6 months or so. If I were to lock in profits by selling some near the money calls to offset, would that be a wash sale? or will I have to wait for another 6 months to have long term capital gains?
thanks LF for breaking out the day after my 7.50 calls expired. still holding some Sep 7.5 calls though so glad to see, but .. yeah. hello manipulation.
mariusz said: ICMATULKASPRMKY said: What should we do with apple?
the dividend amount is pathetic... should be $5/qtr at least
They make 30% or so of the profits in the US , which is what they are paying out. For higher dividends, they will have to repatriate cash paying taxes , and they will not do that. 1.8% is still higher than a host of tech companies.
kantscholar said: There's another way to understand the Apple dividend and buyback. I don't think we should think of these actions as Apple trying to help out its shareholders. They have a massive pile of cash and they can't figure out anything to do with it all. I've been wrong about Apple for almost 400 points now, but I think this is when you get off the train. We'll see. I could be wrong for the next 400 points too.
If you are generating 40-50B cash a year, on the top of the mountain you are sitting on, it is difficult to spend it.They can go an buy a fortune 100 company every year and still have money leftover from the cash generated that year. Anyway, a dividend is better than going for a stupid acquisition and blowing it all.
In my mind apple had three big uncertainties - Jobs and how that would affect near term, next successful product category, and if they will blow away the cash in like buying Skype. I think two of the three have been answered- I will wait how successful they are with iTV or whatever they come up with.
Oh, what I would give to go back in time 4 weeks and tell myself to go all in on those $600 July AAPL calls for $2.90... My first 10 bagger but it was such a tiny investment and I am still negative from last year .
ima4ltrwrd said: Oh, what I would give to go back in time 4 weeks and tell myself to go all in on those $600 July AAPL calls for $2.90... My first 10 bagger but it was such a tiny investment .
Quote for you: "If I would have done exactly the right thing, at exactly the right time yesterday, I'd be much better off than I am today"
jeeves said: DelCheapo said: PCLN is on a tear lately. I feel like taking out some weekly puts, but I'll probably get pulverized.
Why fight momentum? unless you are seeing a near term catalyst?
Just because it's at an all time high and I think the nasdaq might cool off later this week. No catalyst specific to PCLN though... I'll probably wait another day or so and save some time premium.
The entire market rally is pure BS, not supported by any meaningful fundamentals. Most likely Goldman Boys and Friends got some free Fed money to pump the market into the elections(making people paper wealthy for a while, so they can spend more(i.e. borrow)), after which all the bad (financial)news will be released by the mainstream media at once and mountains will crumble. The media control the market by withholding or releasing market moving events(most likely timing of which is pre-arranged), and once all the sheep and grandmas get into the action, the butchering of individual investor accounts will begin. Everybody knows the market is just a massive Ponzi scheme(hugely leveraged may I add, to a tune of up to 100:1), just nobody wants to buy the top, but someone will have to. I predicted the real estate market collapse(was about 1yr early on timing), and I'm predicting a massive stock market collapse due to overleveraging. This is not going to end well for a lot of people.
BilldaCat said: picked up a few ADBE Apr 35 calls for tonight.
Quite optimistic, but ADBE has had a nice run since end of Nov, to me appears overdue for s minicrash of some sort. If IV is making options expensive and you think it's going up, why not a bull put credit spread? Sell the 35s and buy something above just in case, that way you only lose the difference if it tanks.
mariusz said: ICMATULKASPRMKY said: What should we do with apple?
the dividend amount is pathetic... should be $5/qtr at least...... buyback is pointless too, using shareholder money to buy near all time high Look at the yield of the 10 year.
Buy back is returning capital to shareholders regardless it is done at high or low prices.
nycll said: mariusz said: ICMATULKASPRMKY said: What should we do with apple?
the dividend amount is pathetic... should be $5/qtr at least...... buyback is pointless too, using shareholder money to buy near all time high Look at the yield of the 10 year.
Buy back is returning capital to shareholders regardless it is done at high or low prices.
Returning capital to shareholders? sure but is it an good use of the cash?
Granted I don't think AAPL will be in a position where it will be strapped for cash at any point in the near, or even distant future.
I never felt the need for a company that is sitting on a mountian of cash to HAVE to spend it for any reason. Buybacks and dividends generally are done because they feel they need to do something. Anything. and at times nothing is better then anything.
mariusz said: BilldaCat said: picked up a few ADBE Apr 35 calls for tonight.
Quite optimistic, but ADBE has had a nice run since end of Nov, to me appears overdue for s minicrash of some sort. If IV is making options expensive and you think it's going up, why not a bull put credit spread? Sell the 35s and buy something above just in case, that way you only lose the difference if it tanks.
Maybe should have done that, but talked to some of my designer friends who use Adobe products recently who have a lot of good things to say about them now (and they used to have a lot of terrible things to say). Figure I'll take the gamble.
Might look at some long dated calls later for when their Creative Cloud suite hits and hopefully does well.
Bet the put vol in Apple is headed south. Would be a smart move to sell puts rather than outright share buybacks, unless of course it keeps going up and they never get assigned.
Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.
Members of our community may attach files to a post in accordance with the User Agreement. FatWallet is not responsible for the content, accuracy, completeness or validity of any information contained in any attached file. Files have *not* been scanned for viruses. Be especially wary of Excel files which may contain malicious content.
Shopping
Earn Cash Back while you shop - just 3 simple steps.
1. Sign Up so we know who to pay! (It's FREE.)
2. Shop through FatWallet for deals from your favorite stores. Your online purchases earn Cash Back that builds in your FatWallet account.
3. Get Paid by requesting a payment via check or PayPal.
FatWallet coupons help you save more when shopping online. Use our Coupons Search to browse coupons and offers from thousands of stores, gathered into one convenient location.
Forums
As part of our FatWallet Community, you can share deals with almost a million shoppers in our forums. Forum content is generated by consumers for consumers. Share deals, money-saving tips, and more. It's FREE, fun, and addicting.
Support
Our customer experience team is here around the clock - real people ready to assist.
