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Stock Talk - Brian Colello, Morningstar

Nov 14, 2012|

Stock Talk - Brian Colello, Morningstar

Transcript - will not be 100% accurate

I don't know about you but I've been dying to talk about Apple's stock for quite some time we finally have an analyst coming on the show his name's Brian piccolo from Morningstar. And that's the first -- he wants to talk about Brian you're welcome guests thanks for joining us. Let me ask -- are you bullish or bearish on apple. I -- straighten out we think that the Iraqi units sold up 20% and over the past couple months and we think the biggest street in more than anything else. It just pure profit taking even after the selloff the stock is still up 35 staying here today. So we think it. If investors are concerned about the booklet contained about capital gains active -- -- -- it is the largest holding where the biggest winner in most cases apple has been both mr. OK so it could be triggering capital gains based on the big wins and Apple Stock. I think that's certainly part of it we are seeing some concern about whether apple has lost its touch after Steve Jobs. A little bit concerned about apple -- and the management shake up that happens thereafter. We don't think that the case. Let me ask you -- couple -- the hard questions on apple I just read a report this morning Samsung. Outsold apple in Smartphones in the last quarter 55 million phones vs 23 million phones from apple that's a big win. I mean how how does how does apple make up that's a big gap for them to recover. Sure and a couple things that I you know I don't think the Smartphone. It is winner take all there's certainly room for Apple's first and and even for windows and and other ecosystem so. Apple and ordered apple to maintain its valuation is just set in nineteen. Its share of the premium Smartphone space -- then -- felt a lot of midrange phone. Does more to emerging markets lower priced phone. I think that is that they have a little bit another thing to think about it with the galaxy S three that came out it took advantage of -- night window in Apple's product by -- you're looking at the September quarter the iPhone 5 is only the last. He is and it. So a lot of those they just prior to that was still. IPhone four S which was at three -- boat Katrina happens screen. Out -- there is -- four point against. Ford GL CD screen and so that was a much better -- I have more compelling alternative to the -- we think apple caught up in the -- think they'll close the gap. But it has some of that thing to think about that not really just. Apple vs Samsung in and then sending more shares that. Necessarily terrible grapple it and -- proposed. All right let me ask you -- two more stocks Qualcomm 62 dollars a share. It dear -- effectively a big chip maker for apple are they not. Exactly but there a couple of things. Outside of apple that we like the first is that. It basically invented the three G technology into their nickel -- is still in every region eastbound delay capitalist and or anybody else. I don't don't collect -- revenue also the processors are sold in many of the other apple competitors -- the process -- he's been in -- and pick out yesterday. All of the windows Nokia phones coming out all of the rim Blackberry and coming out and he's an actor higher priced just but the strong quarterly results obviously apple cup as well but. All of those factors led to really strong quarter after Qualcomm and we like they're exposed to the market -- more diversified way to play it. OK so we got to so far we've got apple we have Qualcomm you also like. Maxim Integrated Products this is a 28 dollars stock. Yet we think -- -- 33 they're not super cheap but it. Certainly want to keep an iron and what we like about the company's analog chipmakers tend to be exposed to a wide array of industries industrial east -- Communications infrastructure. But they have a little bit this wireless sticker because a lot of if it was either growth. Has come from the -- -- -- the have a tight relationship with Samsung. So compacted in and that you strong bill that you mentioned and enacting an excellent way to play -- -- even if you bought Samsung's stock itself. They have all the appliances and and other factors that this is a good group company across a lot of different and see if it could -- kicker. Respect instead going to basically all of stand. I spoke about the. Here's a concern I have about maxim may -- you can answer it. They're paying out 96 cents a share in dividends right they're only making a dollar 27 so you look at -- at the surface and you say to yourself. But pretty good -- 3.4 percent dividend 120 dollar stock like that. However they're paying now you know close to 75% of their earnings in the form of dividends did they just have a bad quarter is that why that numbers out of -- were they gonna reduce the dividend. Yeah I wasn't exactly yeah I think he compared to the yes it is a little tough because. We are still in the down cycles side I consider that but point -- or whatever you quoted on the yes -- bit of a -- -- to -- even despite. Even that with a yes decline company turned down a lot of free cash left everything to be able to pay that dividend is completely sustainable. And those earning our bit of a worst case scenario that this slump -- started. Last July in the year ended in June saying he's a little bit of an uptick at least scenes that we think -- -- as well I think that dividend is that. Got it all right hey Brian great job wonderful research appreciate your time. It Brian call Morningstar joining us on the financial exchanges to -- makes apple a APL Qualcomm. QC OM. And Maxim Integrated Products. MX -- and David please make sure you get this segment posted because what will happen if you don't hostess -- I will get 483. Emails asking me for the symbol of those three stocks right. That he doesn't really tempt me to posted yet thanks I spend my afternoons in electorate forwarded emails I like reading amenities the I don't need to do your job for doing your job pat post article -- -- -- part of his job it's in his job description. If you don't do it I'm calling Jason wolf. An attorney and you don't even know how to go I don't isn't a look if it was hard you know I don't do the authority I do I -- the financial giant web site -- W market I guarantee you without there. All of them. But not promptly. Sometimes early voting -- I mean they're looking for the stuff like right away as he attacks command and a lot of guys Elvis is alive and so what they do is they listened. After rate and a futile posted I get angry letters so. At least maybe we can do like -- -- is still hard to find good help in this market you. You know they don't know it but don't feel I went on the damn god you -- -- you got they got every. Applicable to -- that we recycle. Those symbols and maybe not you know 1015. -- and I pay attention by the way -- the -- for for today's -- password today is mom doctor like you said earlier now it's mom -- lamb and the number is 8882052263. You've got to be the 25 caller you've got to know the -- -- When -- Turkey gobble and you win at Turkey week out from Thanksgiving. You can email me anytime they like my email address is very Armstrong at wrko.com. As a matter of fact in the next segment were to take a look at a couple of your email messages so few emailed me yesterday stay -- your question might be next on the financial exchange.