I don't want any other persons running Apple. He is the right person for the job. I just want him to do a better job at managing the stock.
Cook, and the board, have put all the pieces in place TO DO a better job at managing expectations:
1. Lowered the street's perception of future earnings.
2. Initiated a massive buy back. Allocating 60 billion fucking dollars to buy back shares by 2015. (Which is about 15% of the company.)
Here is my issue:
They successfully lowered the bar, but they are not supporting the stock!
Utilize the buy back! That is why it was put in place! It's suppose to supplement the lacking demand from the negativity.
Over the past two weeks its as if they stepped away from the purchases. Any structure that was created from the announcement was completely lost. Technical levels were breached. Stop-loss orders were triggered, and the believers in the fundamental story are left contemplating whether or not the stress of being long the stock is worth it. (The negative cycle that feeds on itself.)
A stock needs structure in order for institutions to get on board. Institutional money managers are mostly imitators and idiots. They do not understand the importance of the communication and the unifying benefits between OS X Mavricks and iOS. They don't understand that WWDC highlights Apple as already being a unified and integrated ecosystem. (Something Google and Microsoft are racing toward, but Apple is already there.) They don't understand that pricing power has remained constant for the Mac line while PCs were selling well below half the price of Macs. They don't understand that the majority of pricing power will be consistent because Apple does not focus on market share. They don't understand that if Google or Amazon want to create a viable phone option billions would be needed and allocated, and a focus on production execution is a must. (The poor quality of the Nexus 7 one year after release and poor ability to keep with the limited demand of the Nexus 4 prove that for Google.) They are choosing to ignore Apple's services are growing at +20% a year and already larger then the iPod leg.
The imitators and idiots don't care for fundamentals that position the company. They don't care about the services Apple provides but are so seamless that the benefits are ignored. They just want to see structure in the charts. Without it, you lost 2/3 of all the investor base.
If Tim Cook is going to manage perception and expectations, like Apple has historically done, I hoped they sandbagged expectations for this quarter (because their rev and margin est seemed light) to start under-promising and over-delivering again.
Please, Tim, start managing the stock as well as the company. Utilize the buy back. Under-promise and over-deliver.
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