Posted on 20th April 2010 by Ben Krasner in Stocks & Investing
Apple, iPad, iPhone
Apple announced 1st quarter earnings, today, and took Wall Street’s earnings estimates and stomped all over them. With stronger than expected iPhone sales as well as continued strength throughout its product lineup, Apple announced a staggering 90 percent growth in net revenue and much higher than expected earnings per share figures that sent the stock soaring in initial after-market trading. If you needed any more proof that Apple is the king of corporations, right now, this had to do it for you. I’m sure glad I have the shares that I own – I only wish I had more and had purchased them a long time ago. Have you bought yours yet?
With the overwhelmingly successful launch of yet another product – the iPad – the sky only seems to grow brighter and higher for Apple. They truly have a halo position in the global marketplace and it seems they can do no wrong. Their products are not for everyone and I would argue that their consistently pricing themselves out of certain mainstream marketing, but they are profitable and are not having to compete in a price-competitive arena because their products are so differentiated from the rest of the mix. So while I will never likely own a MacBook or an iMac, I am thrilled with my iPhone and am, in fact, typing this blog post on it right now. Their lineup makes me wonder if they might be able to get at least one product into the homes/hands of many – and what might that number be?
I currently have about 10% of my fledgling IRA invested in Apple stock and I’m pretty content in that number even though I may wish I had a few more shares. At about $240/$250 a share, Apple shares add up quickly. Is this stock right for you? And where could the value of Apple reach?
I think any company that shows the kind of success that Apple has belongs in your portfolio. This is a company that clearly has its finger on the pulse of mobile tech. I also think any stock that has a price tag this high needs you to be monitoring it very closely. These days, investors are much quicker to trade out of a stock if speed bumps are felt or even just perceived to be felt. There’s also more trading in the investor mix and traders will take profits or reposition themselves at a moments notice. And Apple could just as easily be reaching it’s maximum just when we think they are reaching their best distance stride. Google is a prime example of a high-end stock that’s hit a few cracks in their road to world domination and investors and traders have made them pay with quick adjustments during the unoredictable economic times – especially for their failure in China.
With more than half a million iPads sold already – all within the US and before the international release – combined with this quarter’s steller reports, I see no end in sight for the Apple halo. I’m looking for a ride up to near $330 a share, maybe sometime after the holiday season, and continued solid mobile products to be churned out – with the next in line being the new iPhone.
Posted on 18th March 2010 by Ben Krasner in Day to Day Goodies
AT&T, Home Phone, Land Line
We canceled our home phone service today due to extreme lack of use, overly-present charitable gift solicitation and AT&T’s apparent lack of interest in preventing third-party and unauthorized services from being added to our account by individuals other than account owners. We use our cell phones for everything and our home phone was a nice 5.8GHz cordless unit we’ve had for a while but which wouldn’t work in the case where the power went out anyway. We also have cable for high-speed internet and don’t have a fax machine outside of scanning and emailing documents. Consequently, there was simply no value to be gained from paying the $26 or so a month for a home phone line and thus we have it no more.
It’s not unreasonable to say that nearly the only people who ever call us on our home phone are solicitors looking for donations. We’ve been on the do not call list since we had the phone number at our house but had unwittingly given it to a charity group when making a donation a few years ago. That was a huge mistake that I will not be repeating that again. Eventually, our phone number had been passed around to what seemed like a hundred different organizations and all of them were just looking for money for their group. Perhaps the most annoying of these is “MPI” a professional solicitation group that feels like nothing more than a call center full of people trying to collect donations for somewhat reasonable groups like the Fraternal Order of Police, but also odd-sounding groups such as retired fire chiefs… and then worthless organizations like monkeys who have lost their bananas, Slinkys who have lost their tension and ice cream eating veterans of America with brain freeze, amongst seemingly and endless list of others. The moment we gave to one (FOP) we were being hounded by all the rest (though obviously I’m kidding about the Slinkys).
Now telling a solicitor “no” is nothing new and, while it might be a little annoying, isn’t a reason in and of itself to cancel a phone line. No, the bigger problem that I had with the phone line was the yearly phone slamming (cramming and other terms have been used, too) that was happening on our line where third party services were being added to our account without our authorization. There’s a huge marketing “industry” out there of fraudulent businesses and agents that, using nothing more than your name, address and a junk email address, sign phone numbers up by submitting them to billing websites. The hope is that you will either not check your bill and so pay for the service or that they can sell you on keeping the service when you call to cancel it blindly. AT&T knows this (all phone companies or even telco installers know this) and yet will not let you prevent this from happening by adding any feature to your account. So every year we would get one bill that came across at about double what our regular rate was ($26 for basic service looks obvious when you are billed for $45+ after the junk service has been added) and all for a phone we didn’t use. Plus I can’t tell you how annoying it is to call crap services like those and have to cancel your account, demand your money back (most of the time you will have to pursue that end vigorously) clear your name and data from their system (which you can really never confirm by reasonable means) … it’s quite an unwanted hassle.
I have no idea why we waited so long to cancel our home phone service – that’s about $300 a year for at least 2 years (if not 3) that we could have kept in our pockets. And I can’t even count the number of cranky solicitors we had to talk to during that time. And I haven’t even mentioned the issue about our phone number being just one digit off from a local pizza delivery place – oh yeah, big fun there.
So if you’re looking to call me or Natalie use the cell phones. And if you’re looking for a donation to your esteemed retired chess players with arthritis united foundation you can seek funding elsewhere.
Posted on 14th March 2010 by Ben Krasner in Day to Day Goodies
Fantasy Baseball, Greg Nicolai, Yahoo
I’ve decided to play fantasy baseball this season – it will be the first time I have played any fantasy sports games in a number of years after getting bored with them during the initial explosion of online fantasy sports sites. A friend of mine, Greg Nicolai, announced on Facebook that he was looking to start a league and for those interested to contact him. It sounded good and so decided to give it a go, again.
When I first started playing fantasy football and fantasy baseball I was consistently winning my leagues and the sites were in their early stages of development – very basic and the games actually required a lot of web browsing and time to research players, etc. The time I was putting in was a lot, the reward was essentially zero and the challenge was minimal. I think it was a combination of the early websites lacking features and time saving elements and a lot of players who weren’t yet very strong at fantasy sports, yet. So I’m hoping this venture poses a nice challenge and that it’s fun to interact with at least a couple people who I might actually know.
The league is a Yahoo Fantasy Baseball league, a site I have not used before so I don’t know what to expect – and I like that. I need a little of not knowing what to expect in my life, these days… I think. Greg has entitled the league “The Show”, so I guess I have to say that I hope to one day make the show! The draft is coming up quick, so I’ll have to let you know how I do.
Cheers!
Posted on 2nd March 2010 by Ben Krasner in In The News
GM, Product Recalls
Oy! Another GM recall, this time 1.3 Million Chevy Colbalt and sister models from the US, Mexico and Canada. It seems GM has a power steering problem in these vehicles that has already caused some damage in the U.S. Those of us who feel the Colbalt was a huge mistake on GM’s part are not surprised.
At least, with this problem, GM’s cars warn the driver of the problem’s presence unlike the mess Toyota has been embattled with of late. And people are wondering why GM can’t capitalize on other car manufacturer’s misfortunes…
Read more about the GM recall, here. You can also check out the GM media release about the recall, here.
Posted on 2nd March 2010 by Ben Krasner in In The News
USPS
NEW YORK (CNNMoney.com) — Snail mail might soon get even slower.
The U.S. Postal Service plans to propose Tuesday an adjusted mail service schedule, which will likely cut Saturday delivery. The agency will also suggest closing some branches and expanding its use of self-service kiosks in grocery stores and other popular retail spots, as part of its effort to work its way out of a mountain of debt.
USPS posted a $3.8 billion loss in its 2009 fiscal year, the latest in a multiyear string of whopping losses. Mail volume was down 12.7% for the year, a trend the agency expects to continue over the next decade as more consumers opt for online bill payments and message delivery.
The Post Office was $10 billion in debt as of Sept. 30 — not far off from its $15 billion debt limit, which the agency expects to hit in its 2011 fiscal year.
Read more about USPS proposing a 5-day mail schedule, here.
It is this blogger’s opinion that this is a decision they should have come to several years ago when their debt was mounting fast and their volume dropping sharply. With electronic options abound, who really needs Saturday mail service at all, especially during non-holiday weeks? Sure it’s nice to have some mail come on Saturday or have the option to drop something off at the post office while you’re running some other errands, but a simple adjustment to the Monday-through-Friday USPS work schedule would likely enable anyone who really was serviced by Saturday post office hours or delivery to do what they needed to do. Besides, when you drop off that parcel at the post office on Saturday it isn’t actually moving until Monday anyway.
There is nothing wrong with a limiting a work week to only those days which make sense to the bottom line for any given business and I have never understood how an entity so closely tied to the government was working on Saturdays. If the USPS was a private entity and they believed it made good business sense to offer the Saturday services, then so be it – like banks. However, that is not the situation at hand for the USPS.
I hope this proposed service adjustment is approved. US mail just isn’t the same volume or requirements as it once was and the system needed to start adjusting this radically years ago.