tag:blogger.com,1999:blog-68644289259097304972024-02-20T01:53:03.318-08:00Why Apple stock price is inflatedAdelawhttp://www.blogger.com/profile/01760080227203435945noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6864428925909730497.post-10726498658985275762012-05-12T13:05:00.000-07:002012-05-12T13:05:00.154-07:00Apple has reached orbit<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: Calibri;">Apple as corporation has liftoff and now is entering an orbiting phase of its life cycle which will eventually lead to a decaying Orbit.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;">The belief that Apple’s stock is undervalue due to future earnings potential<span style="mso-spacerun: yes;"> </span>in foreign lands is a deception which will soon be revealed due to market saturation and competing products with similar functionality that are available at a lower price point. <span style="mso-spacerun: yes;"> </span>The principles of supply and demand, along with substitution are in play.<span style="mso-spacerun: yes;"> </span>The principles of substitution states when a several similar or commensurate commodities, good or services are available, the one with the lowest price will attract the greatest demand and wide distribution which is why many US companies move their manufacturing overseas, lower labor cost.<span style="mso-spacerun: yes;"> </span>Apple‘s products are not immune to these principles.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;">Apple has sold approximately 210 million iphones since its inception four years ago.<span style="mso-spacerun: yes;"> </span>The growth rate of Apple’s iphone is astonishing with 270,000 iphone sold in the first year and five years later, if reported sales data is accurate is approaching 100 million units for 2012.<span style="mso-spacerun: yes;"> </span>Iphone sale will slow next quarter and there after maintain a steady sale rate very much like a rocket which has reach an orbit until other forces slows it momentum and its orbit begins to decay. </span></div>
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<span style="font-family: Calibri;">The Analysts belief that Apple is going to expand it sales by 20% a year for the next 5 years at current pricing is a deception.<span style="mso-spacerun: yes;"> </span>To accomplish this, Apple sales will have to increase to 153 billion in 2012 and by 2016 have annual sales of 318 billion. <span style="mso-spacerun: yes;"> </span>This equates to approximately 250 million iphone sold or 685000 iphone sold daily in 2017.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Iphone sales are the anchor of Apples earnings.<span style="mso-spacerun: yes;"> </span>What if the iphone isn’t the flavor of the day in 5 years?<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Could this possibly happen?<span style="mso-spacerun: yes;"> </span>It has already begun in the United States as<span style="mso-spacerun: yes;"> </span>Apple will not retain all of its former users as the Iphone and Ipad interface with peripheral devices is lacking. </span></div>
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<span style="font-family: Calibri;">The fact is Apple is manufacturing at least 340,000 iphone and 125,000 Ipad each day. That is if their last quarterly report is accurate.<span style="mso-spacerun: yes;"> </span>That means the world in one year will have an additional 124 million Iphones and a poultry 45 million Ipad which will have to be purchased.<span style="mso-spacerun: yes;"> </span>In five year if projected growth rate of 20% annually are accurate there will be nearly 1 billion Iphones and 450 million Ipads sold.<span style="mso-spacerun: yes;"> </span>Apple product will be commonplace and just other commodity with significantly lower pricing which will dramatically affect apples profitability.</span></div>
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<span style="font-family: Calibri;">The majority of Apples sales will not come from the United States as its market has already been saturated and now the Apple fade being diminishing. <span style="mso-spacerun: yes;"> </span>You can see evident of this in its declining stock price.</span></div>
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<span style="font-family: Calibri;">The belief that foreign markets has the ability to absorb the millions of iphones, Ipads and other products being manufactured<span style="mso-spacerun: yes;"> </span>is not accurate at least at current pricing which is unaffordable to the masses.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>I know a lot of you Apple lovers have a belief that the first item purchased by Chinese or Indians when money earn is a phone. <span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>This is preposterous I would think it would be food and clothing. But hey I but I can imagine all the naked malnutrition Chinese walking around texting and talking on their new iphones and Ipads.<span style="mso-spacerun: yes;"> </span>I am now having a mental picture of Indians wearing nothing more than their Head Wraps. </span></div>
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<span style="font-family: Calibri;">Just as any life cycle there is a beginning a growth an prime and a decline.<span style="mso-spacerun: yes;"> </span>Considering the competing products and other factors Apple is likely reaching a plateau considering its staggering amount of income it is currently earning.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;">I want to reiterate Apple profitability is beginning to stagnate due to the principles of substitution and supply and demand.<span style="mso-spacerun: yes;"> </span>It’s definitely not Rocket Science to understand these principles.<span style="mso-spacerun: yes;"> </span>So if you have capital invested in Apple I would advise seeking alternative investments as Apple stock price is defiantly overvalued at current pricing.</span></div>Adelawhttp://www.blogger.com/profile/01760080227203435945noreply@blogger.com0tag:blogger.com,1999:blog-6864428925909730497.post-69169282437792086292012-04-30T22:39:00.002-07:002012-04-30T22:39:25.254-07:00I AM NOT APPLE HATERPeople have been accusing me of being an Apple Hater. My commentary has nothing to do with Apple products. I have iphones, Ipad and ipods the products are fine. But to say Apple products are significantly superior to other electronic devices would be a lie. I have been providing my comments so people will think before making a stock purchase they may regret. I believe I am reasonably intelligent. So should I just believe all the analysts forecast about Apple stock are would a prudent person investigate before purchasing an asset to insure it is properly valued. I realize my insignificance in this world and know it is short-lived. However, I do believe in integrity and I do not see much of it on display on Wall Street. Considering the majority of Apple’s Stock is owned by institutional investors, I believe it has been manipulated based on future earnings growth which is overly optimistic. <br />
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Apple’s last quarter net Profit of 11.62 billion and increases of 11% to 31% on earning is very suspect, considering the fact Apple’s 2007 net income was 3.5 billion. So if the recent reported earnings are accurate, which I doubt that will mean Apple's net income for 2012 will be approaching 40 Billion which will be about 1150% from 5 years ago. I don’t know of any company in the history of the world that has had that type of growth, it’s unbelievable.<br />
Apple cannot continue to grow its sales and earnings at over 200% a year and is likely hitting the top of the bell curve? If the sales numbers are accurate then apple is manufacturing at least 340,000 Iphones a day. Their product will become commonplace, they are definitely overpriced with that kind of production rate and will lead to a price cut as currently Apple products are unaffordable to the world mass population.<br />
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Time will tell who is right, if the analysts or me.<br />
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I have reviewed the numbers and can see the waning appeal of apple in the United States which will likely spread to the rest of the world. Apple net profit will stagnate at 40 billion, maybe 50 billion. For God Sake they are just smart phones, and the Ipad is nothing more than an enlarged iphone.<br />
If I am wrong I will acknowledge my error, will the analysts. I doubt it.Adelawhttp://www.blogger.com/profile/01760080227203435945noreply@blogger.com0tag:blogger.com,1999:blog-6864428925909730497.post-62508211345884355702012-04-30T22:38:00.001-07:002012-04-30T22:38:07.699-07:00Is Apple’s fashion trend nearing the end?<div class="MsoNormal" style="margin: 0in 0in 10pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="font-family: Calibri;">The reported earnings claimed by Apple are frankly unbelievable.<span style="mso-spacerun: yes;"> </span>Apple reported 35.1 million Iphones were sold in the last Quarter with the majority of the iphones not sold in the United States but overseas.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Is it possible Iphone sales are declining in the United States?<span style="mso-spacerun: yes;"> </span>Its apparently appears to be if 64% of Apple’s sales occurred overseas.<span style="mso-spacerun: yes;"> </span>Its common knowledge American set many fashion trends which are emulated throughout the rest of the World.<span style="mso-spacerun: yes;"> </span>Think of the many fashion trends which are here today and gone tomorrow.</span></div>
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<span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>Could it be that Apple’s tremendous production rates are causing their products to become commonplace and less trendy?<span style="mso-spacerun: yes;"> </span>What will happen in though foreign lands when they find out their not as chic owning an Apple iphone or Ipad, could that possibility affect sales?<span style="mso-spacerun: yes;"> </span>Or heaven forbid a competitor develops the latest greatest thing and the herd must have one.<span style="mso-spacerun: yes;"> </span>Honestly, who can actually use all the functionality built-in to the current smart phones, for that matter needs all the apps.<span style="mso-spacerun: yes;"> </span>How much better is the Iphone 5 going to be, is everyone going to rush out and buy one?<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;">Its apparent Apple products are becoming less fashionable at least in America are more sales would have occurred in the<span style="mso-spacerun: yes;"> </span>United States.<span style="mso-spacerun: yes;"> </span>I don’t want to offend other countries, but America is definitely the best at marketing and other countries typically follow.<span style="mso-spacerun: yes;"> </span>Look how Apple convinced the herd they absolutely needed to buy an iphone and started a stampede, with hundred standing in line just to buy the latest gadget.<span style="mso-spacerun: yes;"> </span>Unfortunately, like most love affairs they end and I believe end of the herd love affair with Apple is just around the corner.<span style="mso-spacerun: yes;"> </span>So before you listen to though deceptive analysts telling you Apple's share price is going to 1000 per share consider my comments as its current sales and growth rate are not sustainable and likely will start declining as the herd is an adulterous animal. </span></div>Adelawhttp://www.blogger.com/profile/01760080227203435945noreply@blogger.com0tag:blogger.com,1999:blog-6864428925909730497.post-6846689149636400692012-04-26T01:51:00.001-07:002012-04-26T01:51:57.631-07:00Apple” s Earnings appear to be Fraudulent.<div class="MsoNoSpacing" style="margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="font-family: Calibri;">The reported earnings claimed by Apple are frankly unbelievable.<span style="mso-spacerun: yes;"> </span>They want the investors to believe that 35.1 million Iphones were sold in the last Quarter and of course the majority of the iphones were not sold in the United States but overseas.<span style="mso-spacerun: yes;"> </span>I wonder who is verifying all the millions of Iphone sales that Apple’s is alleging occurred during the last quarter.<span style="mso-spacerun: yes;"> </span>Definitely not The Security Exchange Commission.<span style="mso-spacerun: yes;"> </span>It amazes me the short term memory of the public.<span style="mso-spacerun: yes;"> </span>Less than 4 years ago Wall Street was tanking due to mass corruption.<span style="mso-spacerun: yes;"> </span>Its apparent nothing has changed.<span style="mso-spacerun: yes;"> </span>Fortunately, the Government intervened along with the Fed Reserve and bailout though WHITE COLLAR THEIEFS.</span></div>
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<span style="font-family: Calibri;">To give you an idea, why I think the reported earnings are fraudulent it would required that four Iphones were sold every second in every day or approximately <span style="color: black;">358,163 each day of the quarter which is 98 days.<span style="mso-spacerun: yes;"> </span>The last available information on iphone production was in September of 2010 when Apple was producing a 137,000 iphone per day.<span style="mso-spacerun: yes;"> </span>Not only does Apples Sales jump by 88% a year it can miraculously increase its production by 210% in a year and half and have not any cost associated with the new production as its net earnings increased by 11% to 31% in its last astonishing Quarterly report.<span style="mso-spacerun: yes;"> </span>That is interesting as 2011 net income was 20%, I guest Apple has already paid for all recently built factories in China.<span style="mso-spacerun: yes;"> </span>It is unbelievable you could said it’s a miracle are possible even lies.</span></span></div>
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<span style="font-family: Calibri;"><span style="color: black;">Apple’s alleged Iphone sales are almost greater than the population of California. </span><span style="mso-spacerun: yes;"> </span>I am sure Apples next Quarter sales will be greater than the population of California and possible the United States which has a population of <span style="color: #222222;">311,591,917, considering its past </span>phenomenal <span style="color: #222222;">growth rate. </span></span></div>
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<span style="color: #222222;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>Who knows in ten years every single person in the whole wide world will have a Iphone, and guess what the price will never be lowered as the demand will never cease, especially when all<span style="mso-spacerun: yes;"> </span>though extraterrestrial<span style="mso-spacerun: yes;"> </span>aliens start purchasing though high tech iphones.<span style="mso-spacerun: yes;"> </span>The Universe is a Big place Brother, Apple will be able to sell Iphones forever.<span style="mso-spacerun: yes;"> </span>Hey, I just realized the Apple corporation maybe God, it certainly has had many miracles in the last couple years.<span style="mso-spacerun: yes;"> </span></span></span></div>
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<span style="color: #222222;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>You just have to believe.<span style="mso-spacerun: yes;"> </span>Keep the faith brethren,<span style="mso-spacerun: yes;"> </span>Apple stock is going to $1000 per share for sure, maybe by next month.<span style="mso-spacerun: yes;"> </span>What does Cramer say:<span style="mso-spacerun: yes;"> </span>Buy-Buy-Buy Buy-Buy-Buy!!!!<span style="mso-spacerun: yes;"> </span>I know his name is Jim but I think he should change it to Richard so I could call him by the nick name which better describes him which would be Dick. </span></span></div>
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<span style="color: #222222;"><span style="font-family: Calibri;">I am back; I think that’s what ET said.<span style="mso-spacerun: yes;"> </span>Sorry, but I haven’t finish my comments,<span style="mso-spacerun: yes;"> </span>that is if you are still with me and not getting mad, I recently received malicious remarks regarding my other commentary on<span style="mso-spacerun: yes;"> </span>Apple Capitalization and Stock Price.<span style="mso-spacerun: yes;"> </span>It kind of makes me feel unappreciated.</span></span></div>
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<span style="color: #222222;"><span style="font-family: Calibri;">So let’s now investigate where the majority of the Iphones were sold in the last Quarter and why Apple’s Next Quarter guidance is ultra-conservative.<span style="mso-spacerun: yes;"> </span>The second part of the investigation can be easily discovered as Apple’s recent earnings and profit are definitely fabrications.<span style="mso-spacerun: yes;"> </span>Its likely Apple’s prior earnings reports are also inaccurate due to the astonishing growth rate.<span style="mso-spacerun: yes;"> </span>I don’t want to offend anybody and call them lies but when it looks like a Duck and quacks like a duck it’s a Duck, my Friends.</span></span></div>
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<span style="font-family: Calibri;"><span style="color: #222222;">I did a little research since the analysts say the majority Apple’s expanding earnings will be achieved in third world countries that are economically rising with the help of Wall Street and the Apple Corporation of course.<span style="mso-spacerun: yes;"> </span>As I recall Apple does not manufacture any devices in the United States anymore.<span style="mso-spacerun: yes;"> </span>Ultimately, who has control of the tremendous factories which were built by American corporations in China which is a Communist Nation?<span style="mso-spacerun: yes;"> </span>Do you actually think apple has full control of its factories in China?<span style="mso-spacerun: yes;"> </span>I think Apple's </span>Manufacture <span style="color: #222222;">is called Falcon.<span style="mso-spacerun: yes;"> </span>That Discussion is for another day. </span></span></div>
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<span style="color: #222222;"><span style="font-family: Calibri;">The manufacturing<span style="mso-spacerun: yes;"> </span>capabilities of the United States has been diminishing for the last 30 years and we are left with an economy which produces<span style="mso-spacerun: yes;"> </span>bubble after bubble to provide an illusion of prosperity to all the masses or may just a few, if you are in the right circles that is.<span style="mso-spacerun: yes;"> </span>However, I think the geniuses on Wall Street say we think they work.<span style="mso-spacerun: yes;"> </span>We will see how that turns out in coming years.</span></span></div>
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<span style="color: #222222;"><span style="font-family: Calibri;">Back to the third world and the per captia income which is published by Wikipedia. You can check to make sure I did not misrepresent or make any errors.</span></span></div>
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<span style="color: black;"><span style="font-family: Calibri;">Country</span></span></div>
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<span style="color: black;"><span style="font-family: Calibri;">POPULATION</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 62.75pt;" valign="bottom" width="84"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">World </span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 96pt;" valign="bottom" width="128"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">Per captia income</span></span></div>
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">US Currency</span></span></div>
</td></tr>
<tr style="height: 24.95pt; mso-yfti-irow: 1;"><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 68.25pt;" valign="bottom" width="91"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"> China</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 99pt;" valign="bottom" width="132"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">1,347,350,000</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 62.75pt;" valign="bottom" width="84"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">19.22%</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 96pt;" valign="bottom" width="128"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>5,414</span></span></div>
</td></tr>
<tr style="height: 24.95pt; mso-yfti-irow: 2;"><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 68.25pt;" valign="bottom" width="91"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"> India</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 99pt;" valign="bottom" width="132"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">1,210,193,422</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 62.75pt;" valign="bottom" width="84"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">17.27%</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 96pt;" valign="bottom" width="128"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>1,389</span></span></div>
</td></tr>
<tr style="height: 24.95pt; mso-yfti-irow: 3;"><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 68.25pt;" valign="bottom" width="91"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"> Indonesia</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 99pt;" valign="bottom" width="132"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">237,641,326</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 62.75pt;" valign="bottom" width="84"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">3.39%</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 96pt;" valign="bottom" width="128"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>3,509</span></span></div>
</td></tr>
<tr style="height: 24.95pt; mso-yfti-irow: 4;"><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 68.25pt;" valign="bottom" width="91"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"> Brazil</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 99pt;" valign="bottom" width="132"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">192,376,496</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 62.75pt;" valign="bottom" width="84"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">2.74%</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 96pt;" valign="bottom" width="128"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">12,789</span></span></div>
</td></tr>
<tr style="height: 24.95pt; mso-yfti-irow: 5;"><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 68.25pt;" valign="bottom" width="91"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"> Pakistan</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 99pt;" valign="bottom" width="132"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">179,381,000</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 62.75pt;" valign="bottom" width="84"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">2.56%</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 96pt;" valign="bottom" width="128"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>1,201</span></span></div>
</td></tr>
<tr style="height: 24.95pt; mso-yfti-irow: 6;"><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 68.25pt;" valign="bottom" width="91"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"> Nigeria</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 99pt;" valign="bottom" width="132"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">162,471,000</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 62.75pt;" valign="bottom" width="84"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">2.32%</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 96pt;" valign="bottom" width="128"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>1,490</span></span></div>
</td></tr>
<tr style="height: 24.95pt; mso-yfti-irow: 7;"><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 68.25pt;" valign="bottom" width="91"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"> Bangladesh</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 99pt;" valign="bottom" width="132"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">142,319,000</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 62.75pt;" valign="bottom" width="84"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">2.03%</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 24.95pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 96pt;" valign="bottom" width="128"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>678</span></span></div>
</td></tr>
<tr style="height: 15pt; mso-yfti-irow: 8;"><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 15pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 68.25pt;" valign="bottom" width="91"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"> Mexico</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 15pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 99pt;" valign="bottom" width="132"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">112,336,538</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 15pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 62.75pt;" valign="bottom" width="84"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">1.60%</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 15pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 96pt;" valign="bottom" width="128"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>10,153</span></span></div>
</td></tr>
<tr style="height: 15pt; mso-yfti-irow: 9;"><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 15pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 68.25pt;" valign="bottom" width="91"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"> Philippines</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 15pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 99pt;" valign="bottom" width="132"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">92,337,852</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 15pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 62.75pt;" valign="bottom" width="84"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">1.32%</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 15pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 96pt;" valign="bottom" width="128"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>2,223</span></span></div>
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<tr style="height: 15pt; mso-yfti-irow: 10; mso-yfti-lastrow: yes;"><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 15pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 68.25pt;" valign="bottom" width="91"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
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</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 15pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 99pt;" valign="bottom" width="132"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">3,676,406,634</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 15pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 62.75pt;" valign="bottom" width="84"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">52.45%</span></span></div>
</td><td style="background-color: transparent; border-bottom: #ece9d8; border-left: #ece9d8; border-right: #ece9d8; border-top: #ece9d8; height: 15pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 96pt;" valign="bottom" width="128"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in;">
<span style="color: black;"><span style="font-family: Calibri;">4,316 Average</span></span></div>
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<span style="color: #222222;"><span style="font-family: Calibri;">According to the various internet sites the iphone 4 is more expensive in these third world countries than in the United States.<span style="mso-spacerun: yes;"> </span>These countries<span style="mso-spacerun: yes;"> </span>general population do not have the income to buy a 8G Iphone selling for $788.00 which would take the typical person in China almost two months of income to buy.<span style="mso-spacerun: yes;"> </span>I don’t think the typical person in China is going to buy the Iphone, especially when there are cheaper alternative smart phones with similar capabilities.<span style="mso-spacerun: yes;"> </span>Forget about India’s general population buying an Iphone.<span style="mso-spacerun: yes;"> </span>Possibly, Brazil and Mexico, but in the millions, I don’t think so unless the Iphone price is significantly lowered.<span style="mso-spacerun: yes;"> </span>The other nation are a no sell, the population cannot afford the cost of the overprice iphone, which it has to be if Apple is producing 350,000 or more units daily.<span style="mso-spacerun: yes;"> </span>According to Apple‘s recent financial statement, this amount of Iphone is being manufactured.<span style="mso-spacerun: yes;"> </span></span></span></div>
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<span style="font-family: Calibri;"><span style="color: #222222;">This leaves the more affluent people of these nations to buy all the millions of iphones which Apple is manufacturing every quarter.<span style="mso-spacerun: yes;"> </span>Just as the wealth in the United States has been polarized so has the World's wealth with 2% of the World population owning </span><span style="color: #444444;">more than half of global household wealth.</span></span></div>
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<span style="font-family: Calibri;"><span style="color: #444444;">Considering 64% of Apple’s earnings came from international sales or about 24.5 million iphones,</span><span style="color: #222222;"> </span><span style="color: #444444;">How many people are left in these<span style="mso-spacerun: yes;"> </span>third world countries that can afford to buy an Iphone?<span style="mso-spacerun: yes;"> </span>Just look at the annual per capita income of these countries.<span style="mso-spacerun: yes;"> </span>Hopefully, you will get the picture that Apple has to lower the cost of its product to significantly </span>capture<span style="mso-spacerun: yes;"> </span><span style="color: #444444;"><span style="mso-spacerun: yes;"> </span>more market share and grow its sales.<span style="mso-spacerun: yes;"> </span>The market base has to be shrinking considering the unbelievable quantity of iphone sold this last quarter. Who is going to buy the millions of iphone coming into the market without a price cut?<span style="mso-spacerun: yes;"> </span>Maybe you can tell me.</span></span></div>
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<span style="color: #444444;"><span style="font-family: Calibri;">Which brings be to my last thought, which I am sure you are glad.<span style="mso-spacerun: yes;"> </span>When is an audit going to be conducted on Apple to verify their Quarterly reports are not just smoke and mirrors?<span style="mso-spacerun: yes;"> </span>Don’t be surprised if Apple earnings for this quarter get revised downward.<span style="mso-spacerun: yes;"> </span>I wouldn’t be.</span></span></div>
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<span style="color: #444444;"><span style="font-family: Calibri;">Before you make any ignorant comments I do not have any Apples shares. </span></span></div>Adelawhttp://www.blogger.com/profile/01760080227203435945noreply@blogger.com1tag:blogger.com,1999:blog-6864428925909730497.post-51842714933377909932012-04-19T22:44:00.000-07:002012-04-19T22:44:26.066-07:00APPLE STOCK PRICE AND MARKET CAPITALIZATION BUILT ON DECEPTION<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: Calibri;">If Apple’s<span style="mso-spacerun: yes;"> </span>Stock Price and Market Capitalization was legitimate and based on fact instead of speculation its stock price would not<span style="mso-spacerun: yes;"> </span>wildly fluctuate on a daily bases.<span style="mso-spacerun: yes;"> </span>Establishing Apple’s market capitalization on its historical sales growth which is clearly unsustainable is a deceptive method which many analysts have utilized to promote apple stock as being greatly undervalued though it has increase by more than 250% in the last 2 years.</span></div>
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<span style="font-family: Calibri;">These are the facts:</span></div>
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<span style="font-family: Calibri;">Apples 2011 net income is reported to be 26 billion on revenues of 128 billion.<span style="mso-spacerun: yes;"> </span>This is a 185% increase from Apple’s 2010 net income which was 14 billion.<span style="mso-spacerun: yes;"> </span>This growth rate will never occur again due to the considerable income apple has achieved. </span></div>
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<span style="font-family: Calibri;">Many analysts believe Apple will expand it sales by 20% for the next 5 years due to its smaller market share of a sales compare to its competitors.<span style="mso-spacerun: yes;"> </span>This is a great deception.<span style="mso-spacerun: yes;"> </span>To accomplish this apple sales will have to increase to 153 billion in 2012 and by 2016 and have annual sales of 318 billion.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>This will never happen due to the enormous scale of 318 billion.</span></div>
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<span style="font-family: "Cambria", "serif"; mso-fareast-font-family: Cambria;">By comparison NASA Space Shuttle operating budget in it last year was 3 billion.<span style="mso-spacerun: yes;"> </span>I provide this as an illustration, to give the cheerleaders a clued about the staggering amount of income Apple currently produces.</span></div>
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<span style="font-family: Calibri;">Apple's average net income over the last 5 years is </span></div>
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<span style="font-family: Calibri;">11.3 billion.<span style="mso-spacerun: yes;"> </span>This income average would typically be utilized to estimate a value for and asset or company.<span style="mso-spacerun: yes;"> </span>How is it possible for a company with an average net income of 11.3 billion to achieve a market capitalization of 590 billion without some form of manipulation by the institutional investors?</span></div>
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<span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>I realize there is a difference between market capitalization and the use of a capitalization rate to determine value.<span style="mso-spacerun: yes;"> </span>However, market capitalization is a qualitative value not easily determine as it represents the public consensus on the value of a company's equity and in Apple’s case it has been inflated.</span></div>
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<span style="font-family: Calibri;">The use of a capitalization is a quantitative method to determine value from quantifiable data such as income and expenses.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;">Let’s assume an unlikely scenario that Apple's<span style="mso-spacerun: yes;"> </span>net income is 40 billion in 2012.<span style="mso-spacerun: yes;"> </span>To achieve this Apple will have to increase its sales by 157% or by 69 billion, this will never happen.<span style="mso-spacerun: yes;"> </span>But for this analysis I will utilize a net income<span style="mso-spacerun: yes;"> </span>40 billion to determine a value for Apple as a company.</span></div>
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<span style="font-family: Calibri;">If a typical capitalization rate of 10% is applied to this net income, a value for the company can be estimated:</span></div>
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<span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>40 billion / 10% = 400 billion.</span></div>
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<span style="font-family: Calibri;">I acknowledge the capitalization rates are assumption, but historically a 10% rate is typically used by investors.<span style="mso-spacerun: yes;"> </span>By this analysis Apple’s market capitalization appears to be in excess by at least 265 billion.</span></div>
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<span style="font-family: Calibri;">Now let get to the 1000 dollarbut now has been revised down to 750<span style="mso-spacerun: yes;"> </span>share price by these expletive saying<span style="mso-spacerun: yes;"> </span>Apple's<span style="mso-spacerun: yes;"> </span>stock will achieve in a relatively short time.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;">I would have like to use the actual word which best describes these analysts, but I probably would be censored.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;">The analysts are the likely the same expletive , which made though wonderful forecasts about similar bubble stocks during dot com bust.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;">This will mean that Apple as a company is approaching a Trillion dollars in value with a the capital recovery of more than 25 years on the money invested<span style="mso-spacerun: yes;"> </span>as Apple’s net income will stagnate at 40 billion, due to the enormity of that sum.</span></div>
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<span style="font-family: Calibri;">Every additional billion of net income will be more difficult to earn, due to its enormous size which is 1000 million.<span style="mso-spacerun: yes;"> </span>This amount of money buys quite a few Ipads, downloads and other apple products.<span style="mso-spacerun: yes;"> </span>How many more apple products can the market absorb?<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;">If Apple wishes to capture more market share of sales it will require developing additional products with lower<span style="mso-spacerun: yes;"> </span>prices as the more affluent markets have been saturated, leaving the less capable markets the task of buying all though millions products which are forecasted<span style="mso-spacerun: yes;"> </span>to be manufactured and sold by apple in the coming years.<span style="mso-spacerun: yes;"> </span>Eventually their products will become common place and less desirable.<span style="mso-spacerun: yes;"> </span>You won’t be that stylist with your new iphone or ipad, you will be just another part of the herd.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>Just as computers, big screen TVs and many other electronic devices have been commoditized, so will apple products if they wish to generate more sales.<span style="mso-spacerun: yes;"> </span>This directly relates to Apple’s value as a company and its allege income growth potential.<span style="mso-spacerun: yes;"> </span>Lower sale prices for Apple’s products will directly impact its net income and value as a company.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;">If apple stock price continues to soar to new heights, do not jump for joy as it has nothing do with its intrinsic value as a company but is just another example of Wall Street manipulation by a handful of Hedge Fund Managers which allows them to collect their billions for managing the working class retirement funds.<span style="mso-spacerun: yes;"> </span>Seventy percent of Apple’s stock is owned by institutional investors which have colluded to inflate apple stock price, due to its incredible growth rate over the last 5 years and the difficulty in evaluating its most important characteristic which is the marketing of its products. </span></div>
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<span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>Eventually, one of the big investors is going to folded there hand and Apple stock will drop like a stone.<span style="mso-spacerun: yes;"> </span>Remember this comment because a decline in Apple Stock is in the near future.</span></div>Adelawhttp://www.blogger.com/profile/01760080227203435945noreply@blogger.com1tag:blogger.com,1999:blog-6864428925909730497.post-42485560841607899462012-04-06T14:21:00.000-07:002012-04-06T14:21:18.538-07:00Apple Stock Price The Great Deception<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: "Cambria", "serif";">Apple stock price is worth every penny, that’s if you are smoking the right stuff.</span></div>
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<span style="font-family: "Cambria", "serif";">The insanity of the speculative markets continue to be cheered by deceptive advocates who have made fortune but don’t acknowledge the actually cost to the United States future which is likely to see a declining standards of living in the year ahead . This is all done for a cause, so that a handful of people can make their billions by manipulating the stock market to show an illusion of prosperity returning to the economy.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";">The analysts who are projecting Apple stock to reach $1000 a share are the likely the same expletive, which made though wonderful forecasts about similar bubble stocks during dot com bust.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";">I would have like to use the actual word which best describe these analysts, but I probably would be censored.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";">The rapid rise in apple stock price has nothing to do with current earnings but is based solely on speculative growth with GREAT EXPECTATIONS that sales growth will increase by 20% annually or more for the next five years.<span style="mso-spacerun: yes;"> </span>This is why the cheerleader believes apples stock is significantly undervalued even though it has increased by over 250% in the less than 2 years.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";">If apple stock price continues to increase, don’t jump for joy.<span style="mso-spacerun: yes;"> </span>The continually increase is nothing but <span style="mso-spacerun: yes;"> </span>herd investing which has caused apple’s stock to increase by 56 % since the beginning of the year. <span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";"><span style="mso-spacerun: yes;"> </span>It was not long ago the herd believed that house prices could never go down but would continue to increase rapidly year over year.<span style="mso-spacerun: yes;"> </span>Just as the apple cheerleaders believe its stock price cannot decline, but will continue to increase.<span style="mso-spacerun: yes;"> </span>As long as the herd believes the fairytales being promoted in regards to Apple’s sales growth its stock price will increase.<span style="mso-spacerun: yes;"> </span>As soon is its earnings and net income do not meet the ridiculous expectations it will drop.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";">FACT:</span></div>
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<span style="font-family: "Cambria", "serif";"><span style="mso-spacerun: yes;"> </span>Apples 2011 net income is reported to be 26 billion on revenues of 128 billion. <span style="mso-spacerun: yes;"> </span>This is a 185% increase from Apple’s 2010 net income which was 14 billion.<span style="mso-spacerun: yes;"> </span>A good majority of Apple earnings came in the 4<sup>th</sup> quarter, I.E holiday season when it s gross earnings increased by about 18 billion from the previous quarters to over 46 billion.<span style="mso-spacerun: yes;"> </span>Unbelievable wouldn’t agree?</span></div>
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<span style="font-family: "Cambria", "serif";"><span style="mso-spacerun: yes;"> </span>The herd believes that Apple can expand it sales by 20% a year for the next 5 years is a deception.<span style="mso-spacerun: yes;"> </span>To accomplish this apple sales will have to increase to 153 billion in 2012 and by 2016 and have annual sales of 318 billion.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";">I don’t know how the herd can believe this fabrication.<span style="mso-spacerun: yes;"> </span>I guess they are smoking some good dope.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";">Based on last year revenue and the prediction that sale will increase by of 20%, Apple’s net income will not exceed 40 billion in 2012.<span style="mso-spacerun: yes;"> </span>Apple’s net profit is approximately 20% based on 2011 earnings and net income.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";"><span style="mso-spacerun: yes;"> </span>Sales – cost of goods sold / sales = net profit</span></div>
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<span style="font-family: "Cambria", "serif";"><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>128 billion – 102 billion / 128 billion </span><span style="font-family: Calibri;"><span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;">≈ 20 %</span><span style="font-family: "Cambria", "serif";"></span></span></div>
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<span style="font-family: "Cambria", "serif";">2012 revenue if sales increases by a 20%.</span></div>
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<span style="font-family: "Cambria", "serif";"><span style="mso-spacerun: yes;"> </span>128 billion X 1.20% </span><span style="font-size: 12pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;">≈ 153 billion</span></span></div>
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<span style="font-size: 12pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;">2012 estimated Net Income from gross sales.</span></span></div>
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<span style="font-size: 12pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>153 X 20% ≈ 31 billion </span></span></div>
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<span style="font-family: "Cambria", "serif";">Every additional billion of net income will be more difficult to earn, due to its enormous size which is 1000 million. <span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>If the analyst’s 2012 forecast are correct Apple’s revenue will increase by 25 billion or 25000 million dollars.<span style="mso-spacerun: yes;"> </span>This amount of money buys quite a few Ipads, downloads and other apple products. <span style="mso-spacerun: yes;"> </span>How many more apple product can the market absorb? <span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";">By comparison NASA Space Shuttle operating budget in it last year was 3 billion.<span style="mso-spacerun: yes;"> </span>I provide this as an illustration, to give the cheerleaders a clued about the staggering amount of income apple currently has.</span></div>
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<span style="font-family: "Cambria", "serif";">Apples net income from the past five years, from 2007 to 2011 is approximately 56.5 billion.<span style="mso-spacerun: yes;"> </span>A major jump in sale and income came in 2010 to 2011 when its net income increased by 11.91 billion. </span></div>
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<span style="font-family: "Cambria", "serif";">What is never asked is how a company with a net income of 26 billion in 2011 can have achieved a market capitalization of 590 billion.<span style="mso-spacerun: yes;"> </span>I realize there is a difference between market capitalization and the use of a capitalization rate to determine value.<span style="mso-spacerun: yes;"> </span>However, market capitalization is a </span><span style="mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">qualitative</span></span><span style="font-family: "Cambria", "serif";"> value not easily determine as it </span><span style="font-family: Calibri;">represents the public consensus on the value of a company's equity and in Apple’s case it had been inflated.</span></div>
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<span style="font-family: Calibri;">The use of a capitalization is a quantitative method to determine value from quantifiable data such as income and expenses.</span><span style="font-family: "Cambria", "serif";"><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";">It is relatively easy to determine Apple value utilizing its net income and a capitalization rate.<span style="mso-spacerun: yes;"> </span>Apple average net income over the last 5 years is 11.3 billion.<span style="mso-spacerun: yes;"> </span>This income average would typically be utilized to estimate a value.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";">But let’s assume an unlikely scenario that Apple net income is 40 billion in 2012.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";">If a typical capitalization of 10% is applied to this net income, a value for the company can be estimated:</span></div>
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<span style="font-family: "Cambria", "serif";"><span style="mso-spacerun: yes;"> </span>40 billion / 10% = 400 billion.</span></div>
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<span style="font-family: "Cambria", "serif";">But to entertain all the promoter of apple stock let utilize a capitalization rate of 6%.<span style="mso-spacerun: yes;"> </span>The lower the capitalization rate the less risk involved with the investment, consequently a higher value.</span></div>
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<span style="font-family: "Cambria", "serif";"><span style="mso-spacerun: yes;"> </span>40 billion / 6% = 666 billion.</span></div>
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<span style="font-family: "Cambria", "serif";">I did not calculate that number on purpose.<span style="mso-spacerun: yes;"> </span>However it is interest.<span style="mso-spacerun: yes;"> </span>Maybe, apple stock price is associated with one of the deadly sins – GREED.<span style="mso-spacerun: yes;"> </span>It certainly appears to be. </span></div>
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<span style="font-family: "Cambria", "serif";">I acknowledge the capitalization rates are assumption, but historically a 10% rate is typically used by investors.<span style="mso-spacerun: yes;"> </span>By this analysis Apple’s market capitalization appear to be in excess by at least 265 billion.</span></div>
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<span style="font-family: "Cambria", "serif";">Now let get to the 1000 dollar a share price which every analysts and his brother are saying <span style="mso-spacerun: yes;"> </span>Apple stock will achieve in a relatively short time.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>This will mean that Apple as a company is worth a Trillion dollars with a the capital recovery of more than 25 years on the money invested<span style="mso-spacerun: yes;"> </span>as Apple’s net income will likely stagnate at 40 billion, due to the enormity of that sum.</span></div>
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<span style="font-family: "Cambria", "serif";">Apple’s income growth is beginning to slow, but this does not stop the analysts from developing deceptive forecast about Apples future growth citing its relatively low market share of worldwide computer, Smartphone and Tablet sales. </span></div>
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<span style="font-family: "Cambria", "serif";">One must ask who is paying these analysts for these deceptive forecasts.<span style="mso-spacerun: yes;"> </span>Could it be the herd on Wall Street which severely damaged the US Economy by all the financial instruments which were developed, supposably to limit risk, but were merely another device which allows them to hedge their bets?<span style="mso-spacerun: yes;"> </span>.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";">It’s not surprising that the 70% of Apple’s stock is owned by institutional investors. <span style="mso-spacerun: yes;"> </span>Apple as company is a great candidate to collude on, due to its incredible growth rate over the last 5 years and the difficulty in evaluating its most important characteristic which is the marketing of its products. </span></div>
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<span style="font-family: "Cambria", "serif";">Marketing <span style="mso-spacerun: yes;"> </span>is an intangible asset, akin to Goodwill which is very difficult to evaluate<span style="mso-spacerun: yes;"> </span>There is a reason,<span style="mso-spacerun: yes;"> </span>Apple’s sales<span style="mso-spacerun: yes;"> </span>are less than its competitor <span style="mso-spacerun: yes;"> </span>which is due to their considerably higher cost, which in many cases are functionality no better than their competitors.<span style="mso-spacerun: yes;"> </span>But if you listen to the experts, it’s like Apple has no competitors or competing products which the consumer can choose, but can only buy Apple products. <span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Cambria", "serif";">I have several apple products, including an ipad which is nothing more than an oversize iphone.<span style="mso-spacerun: yes;"> </span>The Ipad functionality and interface are significantly inferior to a lap top.<span style="mso-spacerun: yes;"> </span>The appeal must be to the herd, which is high on something and give them a convenient place to watch video as its utility is more like a toy than a useful device.</span></div>
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<span style="font-family: Calibri;">If Apple wishes to capture more market share of sales it will require developing additional products with lower<span style="mso-spacerun: yes;"> </span>prices as the more affluent market have been saturated, leaving the less capable market the task of buying all though millions products which are forecast to be manufactured and sold by apple in the coming years.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Calibri;">Just as computers, big screen TVs and many other electronic devices have been commoditized, so will apple products if they wish to generated more sales.<span style="mso-spacerun: yes;"> </span>This directly related to Apple’s value and alleged income growth potential.<span style="mso-spacerun: yes;"> </span>Guess what else is affected by a lower sale price?<span style="mso-spacerun: yes;"> </span>That right earning and net income will be lower, which is another reason Apple income will stagnate. </span></div>
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<span style="font-family: "Cambria", "serif";"><span style="mso-spacerun: yes;"> </span>I could go on about why apple stock is a bubble, but it would be in vain as the herd does not wish to sober up as the dope Wall Street is selling is that good.<span style="mso-spacerun: yes;"> </span>Maybe I need a toke.</span></div>Adelawhttp://www.blogger.com/profile/01760080227203435945noreply@blogger.com1