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Posts by anantksundaram

One, you're the one that said that doing a repurchase increases PE. I simply pointed out that is not the case. Two, yes, buybacks do not necessarily have a meaningful impact on earnings (although there can be some impact from the after-tax interest paid on debt used to finance a repurchase relative to the dividends saved), which, in turn, is why they will have little or no impact on PE. The PE is affected only by expectations of future earnings growth relative to the...
Yes, I forgot about that! They would actually let you try one on our wrist (and that did not require a 15-minute appointment).
Perhaps you didn't understand what he was saying, or what I was saying, or how interest rates work and for whom. If you think -- read his original post again -- you or I (or he) can borrow at negative interest rates, you're mistaken. (Changed wording).
Hmm.... don't they have a number of them on display where you can actually touch, feel, and use one, and explore all of its functionality (although, you cannot put in on your wrist)? My Apple Store had at least a half dozen of those speed out around the store, and people were crowding around them.
What a dumb question. It's more likely than not that they are. In any event, I do own both an AppleWatch and mechanical watches (a number of them, ranging from a $100 Swatches to the fairly high end), and I can tell you that your posts don't hold any water. Do try out one before pontificating.
You're conflating earnings and EPS. The PE is dependent on sentiment about the former, not the latter. (Note that the ratio is is price per share divided by earnings per share, so it is independent of the share count.)More generally, if it was so simple to increase the PE through such financial engineering, everyone would do it all the time, and would be repurchasing everything in sight, no?
It's rather weird -- and just one data point -- how my experience was the exact opposite: the Apple Store about an hour away fom where I live had a PACKED AppleWatch display table. Given that it was just a display case, all you could really do was look at it. There was separate set of areas where you could play with one, and those were all busy too.In fact, the New MacBook (he didn't seem to know that there is no 12" Pro, btw) table was empty! Other than to hold it up and...
It's quite obvious you don't own one yet.Your posts on this may have a little more credibility if you experienced owning one. I am not saying that you should. But rather, arguing with someone about, say, a movie they have not seen or a restaurant they have not been to or a car they have not driven or (you get the idea) is somewhat pointless, no?
Please explain why the P/E ratio should increase with fewer shares in the float.
Because P/E ratio has nothing to do with the EPS. It is determined primarily by a company's expected long run growth rate, and it's cost of capital (i.e., the market's perception of the company's risks in the long run).
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