Apple’s phase 2A is complete

“I recently detailed how Apple investors are basically in a holding period right now. Apple’s dividend has been raised, a substantial buyback is in the works, and no new major products are coming for a few months,” Bill Maurer writes for Seeking Alpha. “This will be a multi-step process, and it will take time. Last week, Apple completed phase 2A of the process. Today, I’ll explain what that means, and look forward to the next steps in this process.”

“Phase 1 was the announcement of Apple’s cash plans. Apple raised its quarterly dividend from $2.65 to $3.05, and added another $50 billion to its buyback,” Maurer writes. “Everyone was looking at WWDC to see what Apple would unveil, and like many figured, there really weren’t any surprises. This is phase 2A of the process, because even though some new products and services were announced, they weren’t large scale items.”

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Maurer writes, “Phase 2B coming next month: Because I didn’t consider WWDC a huge deal when it came to Apple, I’ve lumped that event into a two-part phase that will continue next month. As you probably can guess, I’m referring to Apple’s fiscal Q3 earnings report. We don’t know the exact date yet, so figure the last week or two of the month.”

“Phase 3 will come when Apple launches some new versions of the iPhone and iPad (including Mini). That process is expected to start either in late August or September, and probably finish sometime in October, especially if Apple wants stuff out for the holidays. We all know that an iPhone 5S is coming, along with a new iPad and Mini,” Maurer writes. “The question will be if Apple releases a cheaper iPhone, and if there is anything else that comes out. Is this the year for an iWatch, or will Apple push further into the TV market? We’ll see, but until then, we’ll be waiting for a while.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

17 Comments

    1. GOOG,AMZN,LNKD,PCLN,MSFT,EBAY,DIS,TWX,QCOM.LCC,EXPE,MU, are not tired today. There are places to have your money today. I have used all of these in the last 8 1/2 months. It’s where my AAPL money went after I pulled it out in September. Apple gets all my money when I make a purchase. I wouldn’t use anything else to make a living. Or for my enjoyment needs. AAPL is a different story. Don’t assume that AAPL is the only place you can put your money. Or that you should leave it there forever. It looks like it’s going to have a good second half of the year but you can’t put all your eggs in one basket. Diversify. Learn to take your profit when you’re ahead. Don’t be greedy. Don’t be like so many who are way underwater after last September. Hoping that someday they can get back to even. Well, except for all those who bought in at $7 or $10 and have held all this time. Riiiiiight.

      1. You’re pointing people who buy individual stocks in the right direction: spreading their bets.

        Still, extending that principle further, especially for those not willing to closely monitor their investments (and the investment climate), most people with limited time and market expertise are better off in a diversified portfolio of diversified mutual funds spanning market caps, investing styles, stocks, bonds, and countries.

        So yeah, I own AAPL – and probably every other stock you mentioned – and probably tiny pieces of 5-6,000 other investments…. …but all in my no-load, low-fee funds, not as individual stox….

        1. All well and good. But your investment in mutual funds is eaten away each year by the management fee, which can substantially reduce your returns over the long run. In addition, most mutual funds won’t generate a rate of return that matches or beats investing in an S&P 500 or Russell 2000 index fund (or ETF) over a long-term span. Plus, index funds are SIGNIFICANTLY cheaper to own.

          Just my two cents. Best of luck to you.

          1. Nothing personal but please study the situation a little more. Index funds are not really the way to go. Picking your mutual funds whether it be stock, precious metals, bonds etc. will reward you handsomely in the end. It simply takes due diligence. Just as buying a stock in a company requires research and hard work also. Vanguard fees are amongst the lowest in the industry. There is no free lunch. Buy some books. Start studying. You can’t learn these things overnight. Good luck.

        2. Yup, mutual funds make up about half of my portfolio. Sometimes more. And there’s nothing wrong with 100% of your portfolio spread out amongst diversified mutual funds. I have found that Vanguard mutual funds are great because they have such a low cost factor. No-load is the best way to go. Reinvest your dividends. And if you have it in your IRA’s, so much the better.

      2. I bought half my shares of Apple at its 90s nadir, at a split-adjusted $8 per share. And I’ll be damned if I’m selling.

        A recent study shows that patient investors who have holdings of a stock that introduces a cash dividend or buy the stock at the time the company begins issuing dividends (or shortly thereafter) will in the long term, profit significantly as long as the investor REINVESTS THE DIVIDENDS they receive. This is especially true of a company such as Apple, because in the early years of dividend payouts, the payouts grow at a faster rate. This is an important point.

        To many of you, this might sound esoteric. But if your goal is to make money on a dividend-paying stock, getting in early on the dividend action, reinvesting the dividends (and thus taking advantage of the magic multiplier of compounding) and getting the free ride as the payouts are most accelerated in the early years, you’ll stand to benefit tremendously.

        While the poster GM has selected some excellent companies (I’ll exclude Microsoft on principle alone), and I own many of those he mentioned, I would politely disagree with selling Apple now. I believe Apple stock is priced beneath its fair value, and the new products (and possibly product category launches) to come in the next two years could accelerate the growth in the value of Apple stock significantly. Add to that the growth in the company’s dividend payout and multiply that by compounded, reinvested dividends over a number of years, and you have an outstanding investment for the patient investor.

        Sometimes, chasing rabbits (hot stocks) leads you nowhere in the long run. But a patient investor who selects excellent companies with steady growth, low or now debt, a mountain of cash and a solid, growing dividend will win in the long run.

        Turn off CNBC. Ignore the blather of Seeking Alpha’s amateur bloggers and their opinions. Run screaming from the snotty, prejudiced lies of Business Insider and Gizmodo. Focus on the fundamentals of any company in which you invest. Your blood pressure will be lower, your life better, and in some years ahead, your investment in companies like Apple will appreciate tremendously.

        Best of luck to you. May your future be prosperous.

  1. Amazingly now that Samsung partner with Jay-Z in hope of pushing sale of Galaxy 4S, Samsung’s going lower and lower. Perhaps, Apple should be partner with Beyonce. lol

  2. What I find utterly hilarious in these stock analysis reports is the UTTER lack of concern about Apple being anything other than a money engine. These people have NO concept of creativity. Not an iota.

    Therefore, when these money addicts go all lunatic about Apple not making enough new market busting stuff fast enough, we all get to point right back at them and say: ‘You mammon worshiping dolt! We blame you for turning businesses into biznizziz that CANNOT create and therefore CANNOT pull out of their butts any new market busting stuff!”

    IOW: Money grubbing is ENTIRELY self-destructive. You deliberately KILL the thing you parasitize.

    Unsustainable much?

  3. “What I find utterly hilarious in these stock analysis reports is the UTTER lack of concern about Apple being anything other than a money engine. These people have NO concept of creativity. Not an iota.”

    So very true. If you are playing the market for quick cash, Apple has to be played that way too. But if you are looking at a long term investment,,,,,,,, Well, Mr. Buffet said that one should find a company that they like the way its run. And buy that companies stock. Best advice I ever took.

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