Archive for the ‘Markets’ Category

That Fruit Company is on a roll

July 27, 2007

AAPL just announced a fantastic quarter. A quarter driven, not by the iphone, but by mac sales. that whole ‘Halo effect’ theory seems like it’s finally gaining traction.

The interesting bit of course, is a reported rise in profit margin. Yes, helped along mostly by lower component prices worldwide, but a wonderful piece of news for investors. Profit is up some 70+% and profit margin is up some 1.8 %. Apple is actually hitting margins close to the high 38’s, which is just fantastic. The astonishing part is that growth is being witnessed in the Computer division – a vertical in which ruthless competition has driven pricess to such low levels that even the biggies with all their synergies make only razor thin margins. Apple’s model¬†and their differentiation through Hardware and Software is really allowing them to surge ahead.

The iphone accounts for almost none of these stellar numbers because firstly, the iphone came out way too late for it to make a meaningful impact and secondly,apple books iphone related revenue over 2 years Рlike service revenue. Useful, no doubt, to smoothen out the off-rough quarter.

This company is looking mighty strong. Some more rumors of much deeper relations between Google and Apple and we really have a story going – The device, the software, the channel, the service and the experience all rolled into one. And we haven’t even mentioned the web 2.0 business model yet.

Man, it really is getting hot. Microsoft, where are you?

LBOs are only going to get bigger — here’s why

April 3, 2006

Scary proposition – 2005 saw an unheralded USD200 Billion spent on an estimated 845 LBO deals. Crazy, not just because of the scale of money thats being spent in taking public companies private, but because of the scorching growth in spend – We're talking of numbers that have more than doubled over the last 2 years (which is a trend that, curiously and sadly, my salary has chosen not to follow).

All of this, ofcourse, is symptomatic of a global resurgence in the worlds' economies (note to salary: where's your resurgence, you little dipshit?). With investor confidence this high and the growth of Private Equity firms kitties, it looks like this is a wave that we are going to ride for some more time.

Ps:Investor confidence is a wonderful thing. But this confidence is also fickle. And investors hate fickle things. And fickle things cut investor confidence. Therefore, the investor is his own enemy. er… whatever!