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endimion on 22 June 2012
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Slimebeast said:

The convo between greenmedic88 and endimion rocks. I'm learning so much.

I do think Apple is the stronger of the two though.

endimion, a question for you about Market Cap. You said it represents what investors think the company should sell for. But doesn't it also indirectly represent a companys size and strength (in simple terms, since they were able to achieve that high Market Cap)? Typically.

I thought that p/e was strongly correlated to Market Cap. If a company has a low p/e and is predicted to keep it for the coming few years, that will be reflected in the Market Cap (as the stock value increases).

All these companies that are infamous for being unprofitable year after year (Nokia, Sony, EA, Ubisoft, AMD), they all have low Market Caps in relation to their yearly revenue.

And vice versa. Companies with projected high profits in the coming few years have high Market Caps compared to their revenue (Apple, Google, Activision, Intel).


well what people fail often ti realize is that the stock market is a second hand market.... meaning unless the company dilutes more of theie capital they toych zero of the money exchanged between shareholders when they buy or sell the shares

of course usually that cap is related usually to the size and strength... but while the size is quantitative, strength can be highly subjective... it works a lot like in economics with offer and demand... when i said it's overstated to me they are not worth twice MS..... a lot of that value is based on projection about the future... and to be honnest when it comes to consumer market technology the nyse is a fucking carnival... right now they pretty much think in 10 years everybody will have an iPad a iPhone and a mbp at home....

the best way to see that speculation chunk is to compare that total assets an total equity.... while apple has in billion dollars 116 TA and 76 TE exxon for instance has 349 TA 154 TE.... it is simplified but if you had to strip down the company tomorrow and sell it... just on assets exxon is higher than their own mkt cap (386)... and weighs more money than apple... yet the apple stock trades way higher than both...

what i was saying about p/e was more that ms at 11 plus their track record they are quite solid... apple has one of 14 or 15 i believe... but look at those graph

https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1340395200000&chddm=495006&chls=IntervalBasedLine&q=NASDAQ:MSFT&ntsp=0

https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1340395200000&chddm=3188605&chls=IntervalBasedLine&q=NASDAQ:AAPL&ntsp=0

https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1340395200000&chddm=3487720&chls=IntervalBasedLine&q=NYSE:XOM&ntsp=0

 

(they are suppose to be set on all) and tell me which one appears to be the safest bet for a 20 year investment.....?? apple has been spiking really in the past 3 years or so... expecting that it will rich the sky and stay there is ludicrous... of course this a simplified analysis... but when you look at the big picture you have in one corner the young arrogant bully (apple) and the other the "wise" man with a good bit of experiences positive and negative... (msft)

 

if you want to learn more about all that crasy stuff look on www.investopedia.com and www.seekingalpha.com

 

to go back on the discussion... i also think tablets in general pose an other issue in general to the business world like laptop never replaced desktops really... it because securitywise a more portable device poses a huge problem... if you have corporate secrets and valuable data which most comp do... you don't want people being able to walk out your facility with the computer in their back pocket...

and also at equal specs desktops will always be the cheapest... 

 

so yeah all in all i don't think desktop pc will be majorly replaced by tablets any time soon in the bizz world that is...