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Rap Sheet

Author:

Jam ok

Subject:

Off Topic

Date:

05/13/16 at 1:55 PM CDT

 

 

READ: 4

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Sentiment:

Neutral

OT - Apple

I'm beginning to wonder whether Apple becomes a more compelling value at this price - near its 2 year lows. Their China sales dropped 26%. But they just announced a $1 bln investment in Didi, and a partnership with that company - a 'ride hailing' app to rival Uber. So, obviously, it's looking for other ways to exploit the Chinese market. And I think the Didi deal is also following the 'protocol' of putting significant $ and partnership deals as a way to align with the Chinese government/monetary power, and be a partner rather than a 'foreign target' that gets villified. Almost, but not quite a 'bribe' I think. 

The $1 bln is not a big deal for Apple - they've got about $233 bln in cash, and acquiring footprints in foreign lands is likely a better business proposition than repatriating it. 

I've heard differing opinions on Apple - from it's a 'value trap', to this is a great buying opp. Probably watching too much of Nightly Business Report.

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