hey everybody dave here hidden freedom
investing and today we're going to go
over apple we're going to look at
the q3 earnings we're going to look at
the stock split
news uh we're going to go ahead and look
at the chart
and uh we're also going to you know try
to determine whether or not to buy it's
a hole to sell
i'm gonna look over you know my
portfolio and what i'm gonna do
and all that so let's go ahead and get
started
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[Music]
so apple did post earnings and they blew
out the quarter
and we had 59 billion dollars of income
that was an increase of 11 percent over
the previous quarter from last year
and you know eps went up 2.58 cents
which was an 18
increase 60 percent of those revenues
came
from international um this is a pretty
big quarter
considering you know in the past uh
apple has disappointed quite a bit and
we're in the middle of a
pandemic but i listened to the earnings
call and there was some things in there
that uh
you know kind of you know stood out this
time so let's go and look at the actual
earnings here
so products we did have 42 billion
dollars
and then services 13 billion and this is
the quarter from last year
so that's the substantial increase from
last quarter
excuse me that was a substantial
increase from last year's quarter
of june so in total net sales of 59.6
billion dollars
and we had see gross margins of 22
billion
and then it net income was 11 billion
dollars for that quarter so that was an
increase from last year's
10 billion if we split this out by the
products here in geographical locations
you know america's had a pretty big
substantial increase
over previous quarter of last year
europe
uh china japan and the rest of um asian
pacific here
all had an increase over you know last
year's quarter june quarter
so that's pretty amazing i wonder what
caused that
um so we looked down here at the product
categories
we had iphones which you know had an
increase
uh from the 25.9 billion
from last quarter of 2018 or year over
year quarter increase so
and then mac we had an increase ipad we
had increase
wearables we had an increase and
services we had increased so overall
every single one of those product
categories had an increase
so apple is killing it during the
pandemic
i don't really know i mean they did talk
about some things on the
on the earnings call but nothing you
know was really specific um could just
be that people are staying home
people are buying more macbooks they're
buying different phones or upgrading
phones or getting a stimulus check or
something like that
and they're upgrading their phone so
wearables was one of those ones where
they did say it declined but it was
still a double digit increase
and then services here we had an
increase as well the you know the music
subscriptions and you know the apple tv
and all that stuff and uh you know
everybody's staying at home so
you know some of these categories are
shifting around and that's just the way
it goes uh
sometimes it's a winner sometimes a
loser but
um this quarter um they did have an
increase in
phone iphone sells now that was partly
in demand by the iphone 11
but it was also a big part of that
increase had to do with
iphone uh se and
you know i guess on the earnings call
they kind of mentioned that
part of that had to do with the no
interest financing or the low interest
financing
on top of the fact that you know they're
allowing some trade-ins as well
so that kind of gives it a competitive
advantage over
you the iphone 11. not to mention the
iphone
se is smaller as well
as 300 less i think it is so and you
know people are taking advantage of that
so
um iphone 12 we're going to talk about
that here in a second
but so they did have an increase
in iphone sales in the last previous six
quarters apparently that the iphones
were under decline so
iphone sales going up i caught them by
surprise and they were surpri
quite surprised and i think they said
that the iphone sc had quite a bit to do
that so here we are
looking at the finvis chart for apple
we'll just kind of go over some of the
numbers here
we got a market cap of 2.03 trillion
dollars that's the pretty much the
largest company in the world at this
point
and it didn't take them that long to
double from one trillion i remember him
talk about one trillion one trillion one
trillion and then now it's like here we
are at two trillion already
it's crazy absolutely crazy in the
middle of a pandemic
so uh income 58 billion dollars we had
sales
revenue of 278 billion dollars
and dividend is 0.66 unfortunately
because
it's had a big run up since the stock
split news
that you're going to get less than one
percent on it right now
137 000 employees uh we had a ford p e
of 32
it's pretty it's not bad i mean for
apple it's
probably acceptable you know compared to
like a tesla that's out there that's
sitting over a thousand right now
on a pe um this is pretty reasonably
priced
if you really look at it gross profit
margin
is 38 operating margin is 24
and profit margin is 21 we have the beta
which is pretty high
1.23 and we you know we had a pretty
pretty recent run-up here here ever
since the earnings and then the stock
split
news and we're going to talk about the
stock split news here in a second
but let's go ahead and look at the
seeking alpha information here
so we're looking at the seeking alpha
information we did look at the dividend
earlier i was .65 i wish they would just
you know double that take some of the
free cash they have and you know take
some of those profits they have and
double it
they got enough cash why don't they just
double it at this point
um we got a payout ratio of 25 which is
reasonable so they can double that
payout and you know not worry about the
growth here too much
we do have a dividend growth of eight
years and that kager is
10.49 i wish they'd just doubled at this
point
um you know apple is a growth kind of an
in between a growth and a dividend but
um just double it you make enough money
double it how hard is that so there's a
capital structure for apple
market cap is 2.16 trillion which we
looked at the other page
and we got the total debt is 122 billion
dollars and that's quite a bit but for
apple that's not very much
um you know any other you know company
out there that would be a kind of a red
flag but with apple we're
two trillion dollars they make a ton of
money they have
93 billion dollars in cash laying around
and as i said in the last video
that cash can be split up between
short-term investments and
cash and we can kind of look at that on
the wall street journal page here
we got short term investments of 72
billion and then we got cash only is 28
billion now that was from 2019 so they
may have used some of that cash up
or they may even move some of that money
out of short-term investments but
um this you know could be a bunch of
different things here but
you know bond or something like that and
you know just let you know that that
cash is just not
made up of just straight cash that they
have inside of a bank account
here's a stock split news and
this thing's been on fire ever since
they announced it
he had to be a record on record
on august 24 to be able to be qualified
for the stock split
the stock split date is august 28 which
is tomorrow
friday today is august 27th which is a
thursday
and the actual first day it's going to
trade under its new price
will be august 31st
and they're gonna do a four for one
stock split so that means most likely
i've been feeling this is gonna be
around 500 or so when it splits
which would put the stock about 125
per share to be notified of future
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so where is this stock going you know
where did i buy it
and am i going to hold on to it am i
going to sell it um
am i going to render some profits i am
up big in apple
um let's go ahead and take a look at my
account right now so look at my schwab
account here and this is when i bought
apple and if you don't recall or maybe
you do recall
march 23rd was the absolute low in the
market
all right now i had picked up apple 19
shares that day
and i just it was luck right i mean we
made a new low that day we had a new leg
down
and i just decided to dump you know 19
shares into apple
that was 4 100 and then later in april i
bought four more shares and then
again in april i bought another share so
that brings my share total up to what 24
shares or so
in that one account i do own another
account as well but there's only one or
two shares or something in there as well
so i did pick that up on the absolute
level so that means i am up pretty big
in this stock so if we look at my
dividend portfolio here
let's go to current portfolio
so we're already let's see here apple
and right now i'm up over 116 percent on
apple
with a 6700 gain on it and you know
that's with the original
you know four or five thousand dollar
investment
my cost basis is 55.89
so that's a pretty substantial increase
and obviously you know if i knew that we
were going to have
that was going to be the low in the
market obviously i would have put in
more right i mean it's just the way
things go you don't know if it's going
to be the absolute low
um i still think i did a pretty good job
considering this
you know portfolio was a lot smaller at
the time as well
i just you know went lump sum into apple
and
you know it paid off so a lot of that
had to do with the stock split
in this blowout quarter as well but what
am i going to do now
i'm up 116 the split news came out
stock is way up and you know if we look
at that chart there
so this chart here it's kind of got an
ascending uh
channel going on we're at the top um in
my opinion that this
is probably going to be right around 500
right on the dot when it splits
so that would put it about 125 after the
split
there is some catalyst out there that's
probably going to make me keep
the stock and some of those catalysts
are
um iphone 12 and 5g coming out
i think they're going to announce that
or possibly do
the event in october they may do it in
september but i think it's scheduled for
october
um from all the news that i heard
so here's you know 2020 planned events
new products and software coming in 2020
in the fall of 2020 and they talk about
a bunch of other stuff in here but the
armbase max the
apple apple silicone is another one
so they're getting away from the intel
based uh chips
you know that's bad for my intel stock
that i just bought if you haven't seen
that video go and take a look at it up
here
and i have a big pretty big stake in it
and
you know here we are apple cutting out
the intel chips eventually but
they are still supporting the apple uh
max uh the apple intel max
intel based cpu max so don't worry about
that if you just bought one you're still
good they're gonna still sport support
it for quite a while so don't worry
about that
um but that is a catalyst going forward
um they can control that process you
know they can
hopefully get a better profit margin out
of it not to mention they're supposed to
be performance wise
supposed to be better as well i think
they already run it and their ipads and
all that stuff they also did talk about
doubling their revenue for services and
that happened six months ahead of
schedule
so that's another catalyst going forward
another catalyst that they mentioned
also was being uh fully carbon neutral
from their supply chain entire supply
chain
uh by 2030 and that's pretty big so
that's
uh that's a pretty good one iphone 12
like i said 5g
i think they're going to announce that
in 20 let's see october 2020 so that's a
pretty good
catalyst so i think all those things
alone right there is enough for me to
probably hold on to the stock
and not sell it um i have a feeling that
after the split it's just gonna go up
more
um i remember the split back in 2014 and
look at you know where the stock is now
so it's already up to 500
and it's six years and you know i mean
there's people out there that probably
been waiting around even though there's
fractional shares in almost every single
you know broker out there maybe there's
still some people out there
that just could not own one full share
or want to own one full share
and you know there's people with smaller
accounts and i don't even
it doesn't even dawn on me that people
still just want to own one full share
and the fractional shares just didn't
really uh feel like they even owned a
part of apple so
i've never been in that boat um you know
so it wasn't until somebody brought it
up to
to my attention that maybe that's a
concern for some of the smaller
investors out there
now you know that bringing to light i
kind of makes sense so i can see what
they're going through
um you know is it going to help the
stock probably it really doesn't change
anything fundamentally for the stock at
all
um but people you know there is people
out there that don't realize that the
stock is not really
cheap based on the stock price um
so they might actually think like this
is a deal i gotta buy it was just 500 a
couple months ago
i need to buy the stock it's only 125
and
unfortunately that's just not the right
thinking is incorrect
so this really doesn't change anything
fundamentally for the stock
and i do think that this actually is a
good thing
um and you know we got tested at it as
well
and maybe amazon will do it maybe google
will do it maybe facebook will do it
and there's plenty of other stocks that
could do it as well maybe cmg chippetal
might even do it as well
so um you know when i was growing up i
think it was maybe in the
80s or 90s you used to hear about the
big apple all the time
so yeah if you're maybe in your 40s 50s
or 60s you might have heard of the big
apple
and that's just what they called new
york city uh
and i think it even dates back to 1920
the big apple the big apple the big
apple and it's like
that's nothing to do with apple alright
apple came out what in the 70s i think
so
had nothing to do with apple the big
apple and they finally got rid of that
whole
saying and got away i mean it's just
you'd have to be probably a certain age
to understand
uh that's what it used to be called all
the time but uh it's just a little bit
of tid bit of news there and i didn't
realize it had
nothing to do with apple um until i
looked it up recently so i was kind of
uh kind of it was kind of interesting
news so
uh i'm gonna go ahead and hold on to my
shares
and i have no intentions of selling my
shares
and matter of fact um i'm probably gonna
get 100 shares and start selling some
more
covered calls against apple now so
going forward i'm going to hold on to it
and
i think that this is great for the stock
i think it's going to go up on this
and with that we'll go ahead in the
video here so go ahead and like and
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and go ahead and leave a comment below
if any questions or comments we'll see
you next video thanks for watching
