Under-the-radar gems from Apple’s earnings call

“On Monday, Apple released results for fiscal Q2, and had an earnings call,” J. M. Manness writes for Seeking Alpha. “There was a lot for the Apple investor to like in both the announcement and the call, but there was one small thing said that should have been a wake up call to investors, but was generally overlooked in the recent discussions.”

“I believe that Apple management does not say anything in an earnings call that it does not mean, and Cook is always meticulous about his wording,” Manness writes. “This is why I place such emphasis on the comments.

So, the following two points are evident:

1. Apple clearly has more products coming, and
2. Apple strongly believes the stock will appreciate significantly over the next few years, and thus buying back shares at current prices will be a bargain for shareholders.

Much more in the full article here.

MacDailyNews Take:


  1. Kinda a random article. Hardly gems in my view.

    Stock repurchases are always going to take precedent over dividends because latter requires a commitment at fixed time points. With repurchases they can pick and choose their time and even decide not to based on the situation.

    The market prefers repurchases because it return cash into the system. Dividends can be used outside of the market or reinvested.

    1. It is only a Wall Street conspiracy when the stock goes down. The fact that it has overall gone up more than almost any stock in history is unimportant.

    2. Agreed. I just rolled my eyes for a moment and moved on. When Apple reported great numbers and projections that beat the Street, and analysts responded by stating they were “worried,” I ignored their foolishness. You should too.

      Simply remember this: Apple is dominating its markets. Its sales, earnings and cash generation continue to grow. Its stock is relatively cheap, even now. It will continue to raise its dividend and buy back stock. In short, the fundamentals are sound.

      Knowing that, ignore the rest, because it’s just noise. There’s no logic to explaining the stock market on a day-to-day basis, so don’t worry about that. Apple will grow, and over time, so will the valuation of its stock. If you reinvest the dividends and let things take care of themselves, in the long run, you will benefit tremendously.

      Have a great weekend.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.