Comments on: If not for an obscure accounting rule, Apple would have beat Street in Q412 EPS

By: Jersey_Trader

Jersey_Trader — Thu, 15 Nov 2012 14:07:55 +0000

Thank you for letting the readers know. When I read the article “The Real Truth About Apple’s Q4 Results” at Seeking Alpha it reminded me of the slight of hand ways Apple’s stock was beat down in the past. Remember the GAAP rules stretching out the iPhone sale over several years of the contracts?

In the end, Apple beat their estimates and the talking heads had a temper tantrum that they “estimated” too high. If they took the time to understand this huge corporation they would have cried out that they were correct. 1/4 billion dollars off and they strip 22% of stock value from the only company that has many many many billions more just sitting in the bank. Clueless!

By: nsapap

nsapap — Thu, 15 Nov 2012 13:37:39 +0000

Counterproductive,

By: Counterproductive

Counterproductive — Thu, 15 Nov 2012 05:18:08 +0000

Really? Isn’t it lovely how, when there is some explanation of how Apple’s treatment by WallStreet is perhaps a little unfair or misleading, there is always someone to say, “all this is completely understood by analysts and already priced in?”

Te contention is that it is not widely or completely understood. The proof that it is not widely ir completely understood is given as any or all of the below:

A) the stock price drops dramatically no matter what
B) the stock price drops more in comparison to other company’s stocks no matter how poorly those companies perform
C) no analyst mentions the above explanations in any of their forecasts or reviews
D) no analysts react to or profess to understand or recognize the explanations
E) Apple is held to a higher standard than their companies
F) all kinds of of other explanations are given for devaluing Apple’s stock that have nothing to do with said explanation, such as Tim’s leadership, killer competing products, lackluster Apple products, etc.
G) no analyst really knows what makes Apple competitive nor the nature of its technological and supply management advantages, only business school theories about so-called large numbers are proffered.
H) analysts assume that others can easily replicate any part of Apple’s business at will, despite the evidence of history to the contrary
And on and on….

By: bkire

bkire — Thu, 15 Nov 2012 02:19:34 +0000

Theoretically, efficient capital markets consider all available information and thus effect stock price. The statement that an obscure accounting rule Apple would have beat the Street, is not completely correct. The Street already considered this “obscure accounting rule” in its consensus forecasts, since the accounting polices are disclosed in Apple’s quarterly financial reports. So I don’t know what the author of this article is smoking. These are not “accounting anomalies”, it’s GAAP. Apple did right by reporting its financials to comply with GAAP.

By: Cb

Cb — Thu, 15 Nov 2012 00:28:05 +0000

Because none are needed…

By: warrenitis

warrenitis — Wed, 14 Nov 2012 23:51:34 +0000

No escuses for apple plz.

By: Ansel

Ansel — Wed, 14 Nov 2012 23:45:46 +0000

They are simply taking losses on their future contracts they have already paid for …..

If the contracts go south Apple has already taken the loss ….. If they go north Apple will recoup those monies and have greater earnings on that current quarter due to a strong dollar ….

To recap …. Strong Dollar means even higher profits …….

Weak Dollar means profits on even keel as they have the insurance policy already paid for that will give them the difference between the currencies …. And they took the charge in Q4 2012 …..

By: Kristian

Kristian — Wed, 14 Nov 2012 23:41:00 +0000

Anals and other should know these kind of things from the papers that Apple provides. There is no news for the rest of us, so move along…