Thursday, December 6, 2012

BobUrUncle's Comments




One other thing, you need size and a lot of capital to succeed in commodity businesses. In the CE business, you need to buy and build in large volumes to High Low Schoolfeest Jurken contain costs. It's pretty much a duopoly now with WDC. Same with Intel and AMD. AAPL sells into a commodity business too, but commands a premium because of their innovation edge. OCZ rose because they charged a premium because of their initial performance advantage. That edge is gone now and they have to compete on price and reliability. Every adopters may have been willing to live with reliability and shorten device life, but the general A-lijn Avondjurken market is not. Commodity businesses sell at much lower valuations Korte Cocktailjurken than companies with a competitive moat. There are numerous examples of failed or failing business that couldn't transition when their businesses were 'commoditized'. DEC (sold), Sun (sold), Nortel (ch. Options can get you 100-500% return for the same money. With puts, your only risking the value of the options contracts. That said, stay away from complex option strategies if you have no prior experience. Some newbies pile in seeing the potential returns and buy too many contracts, then get hit with IV collapse and get burned.


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