Are Shares As Good As They Look?

These sort of statistics are beginning to put the world in financial jeopardy and people seem to continue to ignore signs of the times. These types of comments are ignored in favour of doing a deal, selling shares or products off the back of other peoples debt misery. A typical comment maybe as follows with a heading starting
The grim signal that Apple just delivered to the markets  - just to alarm the market and get interested parties to read more or investigate what it means. Next we reel in the [mug] sorry investor and this has to really get their interest like this - For much of the last 20 years, the prize for the biggest business on the globe has alternated between Microsoft, Exxon Mobil and General Electric. But now one company towers over everyone else – Apple. 
Having hooked the [Fish] they follow up with - Then we read that Apple is going to release some of its amazing $100bn cash pile back to investors. The first dividend in 17 years. What should we read into that? (I’ll tell you in a second).
WAIT WAIT - we are now about to tell you a real FACT to make sure you do not wriggle off the hook they have you on, here it is -
After a remarkably eventful week, Apple then suffered its very own ‘flash-crash’ as shares dropped nearly 10% within minutes and forced a halt in trading.
By now you are staggering at the fact that a company so big can suddenly have such a problem, but wait for it the SALES PATTER STARTS like this - To me, the most important of the three stories is the one that was given least coverage. And that is the mini-crash. Today I want to tell you why I think this is so important and what it could mean for the market at large.

Time to put you in the keep net with - 

There’s no doubt about it. Apple has become a money printing machine. The figures are just mind-boggling. According to The Economist, sales in the last quarter were almost double those the previous year. And forecasts suggest that sales for 2013 will be nearly triple 2010’s figures.

But we need a CLOSER AND HERE IT IS - No wonder the stock has been flying!

FOLLOWED BY-

There’s so much money coming in the door that management literally doesn't know what to do with it all. And that’s why, last week it announced not only a dividend, but also a $10bn share buyback (where the firm buys back its own stock in the market).

Some investors are saying that this shows Apple has reached the end of the road... that’s why it's handing back money to investors – it's got nowhere to invest it! The cynics also point out that management has a nasty habit of initiating share buybacks right at the top of the market. Surely, they say, now the only way for Apple is down.

FINALLY- 

But I’m not so sure. In reality, the dividend is small, they’re giving shareholders back around $30bn over the next three years. At today’s share price, it’ll give investors a yield just below 2%. And the $10bn buyback is smaller still. Cash is rolling in quicker than these giveaways are paying out. 

Convincing anyone that stocks can go up and down but by buying these shares at such a good price namely 10% less you as an investor could be the winner. But as with all shares they do go up and down and a final comment like this one just SEALS THE DEAL like this one - 

With Apple’s shares trading on a relatively sober forecast p/e of less than 14 times for 2012, the market clearly isn’t expecting loads of growth. That could leave some upside for investors. 

 
Last week it was announced that the value of Apple is now roughly the same as the whole US retail sector. Think about that for a second... there are some big businesses in the US retail sector – and Apple is worth the same as all of them put together!

These types of  cases are putting people in a mess everyday and believe me not everyone makes money on the shares they buy, more rather than less make a lose.

So be careful do not believe everything you read as you may be being manipulated without even knowing it!
 
All the posts are provided by me and any comments l provide are my own view of the markets,with extracts from various articles and posts l have read.

http://acefinancenews.blogspot.com/

IMF Executive Board Concludes 2011 Article IV Consultation with Spain

After more than a decade of strong expansion led by a credit-fueled housing boom, the Spanish economy was hit by three major shocks: the global financial crisis, the busting of Spain’s domestic boom, and the euro area debt crisis. These shocks exposed Spain’s vulnerabilities stemming from accumulated imbalances and pushed the economy into a sharp recession, with the euro area debt crisis subsequently putting pressure on funding costs.


The economy has been gradually recovering and re-balancing. Growth has gradually picked up from the first quarter of 2010, led by strong exports as the re-balancing to external demand proceeded. Private sector savings-investment balances have improved, helping stabilize debt ratios and reduce the current account deficit. The housing market continued to adjust. Real wages moderated and unit labor costs improved. However, at around 21 percent, the unemployment rate is more than twice the euro area average. Inflation has picked up, led by energy prices and indirect taxes, and is again above the euro area average. A reform of collective bargaining aiming at greater firm-level flexibility was presented to Parliament in June 2011, complementing the June 2010 labor market reform.

All the posts are provided by my own and personal view of the global financial markets and are not always the views of the people who provided the post or article.