Sunday, July 28, 2013

Starbucks +7.61%

They had 'silly numbers' as an analyst commented their latest results.

Starbucks Corporation (SBUX)' third-quarter operating income increased 25% to $615.2 million, or $0.55 per share. Total sales jumped 13% to $3.7 billion. Global comparable-store sales increased 8%, with 7% of that made up of all-important traffic growth. Lower costs, for example for coffee, also fed into the cafe giant's improved profitability.

More and more people buy the overpriced, bitter and burnt Starbucks coffee.
And sometime last year I could see the potential of Starbucks; the recession was over, most people were safe about their jobs so let's enjoy life as they could.

My strategy was to double my position in Starbucks in small steps until the price hit around $70. And once the stock got to $100 I would have sold half of it. So I started buying at around $55-60, increased my position by 20% and all the sudden the stock started sliding and got dangerously close to my average price of $47. I could not stomach any longer and started selling back what I had acquired recently until I had the same number of shares I started with before I had decided on the 'strategy' of doubling SBUX,

And now the stock is $73!


Saturday, July 20, 2013

Postcard to Apple Investor Relations


"We were in an Apple store shortly after the iPhone 5 was released and heard a Genius Bar employee tell a customer that the iPhone 5 should have been bigger. This is clearly something some people want. " from 'Sweeping changes' coming to Apple stores


The following is what I wrote in the postcard and a few other things that did not fit:

***
I am an Apple shareholder so I am allowed to send suggestion :).

1. iPhone with a bigger screen and a very powerful processor. It will have MacOS installed as well that will be used for a ‘device’ (display + keyboard) plugged to the phone. No need to carry a smartphone and a notebook.
'The notebook is dead, long live the notebook!'

2. Apple to buy www.britannica.com and provide free access to anyone with an Apple device (Wikipedia is the 6th most visited website, so you can see what I am getting at).

3. Buy the rights to everything that BBC produces, and any old American and foreign movies that are not expensive and set up a website where they can be accessed from anywhere in the world again free of charge for anyone who uses an Apple device.

4. I can borrow DVDs from my library to watch movies. I wonder whether they would be allowed to digitize them so I can watch the DVD online that would be a better experience (sometimes the DVD does not work due to its overuse I suppose). Watching the DVD online would involve checking it out and in - only one 'library card' watching the movie - so it would be a similar process to borrowing the physical item.
Apple would provide the 'equipment' to quickly digitize the DVDs with the condition that for a certain period of time only users with an Apple device to be able to watch them.
***

Initially I wanted to use this photo, an apple cocktail tree (multiple apple varieties on the same tree) but the photo was not to clear and anyway too much of a cliche.

So I went for this photo taken when I was in Whistler, BC, Canada. It is July and Investor Relations receive a winter postcard. It would keep them cool looking at it.

I was thinking to send the same postcard to one of the top institutional holders of Apple but no point in doing it.

UPDATE: sent an e-mail with my ideas (I know, everyone has ideas) to Northern Trust Corporation and Invesco just not to say I have not done it. Apple would not listen to me but perhaps they might listen to some of their major shareholders.

Top Institutional Holders
HolderShares% OutValue*Reported
Vanguard Group, Inc. (The)43,247,8244.6119,144,081,771Mar 31, 2013
State Street Corporation37,194,6313.9616,464,575,358Mar 31, 2013
FMR, LLC34,747,6823.7015,381,408,914Mar 31, 2013
BlackRock Institutional Trust Company, N.A.25,668,4312.7311,362,387,666Mar 31, 2013
Northern Trust Corporation13,848,7151.486,130,272,181Mar 31, 2013
JP Morgan Chase & Company13,551,2571.445,998,599,423Mar 31, 2013
Bank of New York Mellon Corporation12,562,5911.345,560,956,532Mar 31, 2013
Invesco Ltd.12,307,4981.315,448,037,064Mar 31, 2013
Susquehanna International Group, LLP12,059,2211.285,338,134,767Mar 31, 2013
Price (T.Rowe) Associates Inc11,659,7131.245,161,288,556Mar 31, 2013

Monday, July 15, 2013

Postcard to Warren Buffett

Yes, I have sent a postcard to Warren Buffett.

Front of postcard


Back of postcard


It didn't fit the card - I wasn't going to send 2 postcards - but I had these examples as well: