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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?


To: John Koligman who wrote (152241)4/4/2013 11:59:57 AM
From: Doren3 Recommendations  Read Replies (2) | Respond to of 213182
 
> With any project this large, cost overruns are likely inevitable.

Its more like: with any project that deviates from standard building practices cost overruns are likely inevitable. Forget likely, they ARE inevitable.

I work on custom homes like Joan Kroc's or Janet Jackson's home. I can tell you the best homes are rectangular and simple. Money is better spent on quality materials and appliances. Curves are costly and usually give you nothing in return.

Now, granted, a building like this is designed for more than effectiveness. Its somewhat of an advertisement for Apple.

But what happens is that when one device that is custom designed to work on this project doesn't work, the next device also doesn't work, it cascades down the line. Subcontractors have to reschedule. And pretty much every standardized material or device made is made to work on a rectangular building. For example pipes. They make them straight. Sheet rock. Its made straight, braces made on 90 or 45 degree angles. Think about it, there are no 90 degree angles on this building. They are going to be 91 or 93 degrees. So what happens a lot? A sub has the choice to try to "make it work" or spend a lot of time trying to find another way and end up loosing money on the job. Not many take the second choice. Even if they bid the job high.

All of Frank Lloyd Wright's buildings leak. They look nice but who want's to wake up at 3AM during a driving rainstorm and find out you have water coming into your building... on the third floor?

It has always seemed to me that this building was "iffy" in terms of what spending Apple's money.



To: John Koligman who wrote (152241)4/4/2013 1:00:25 PM
From: Stock Puppy  Respond to of 213182
 
:-)
The budget for the building has jumped to $5 billion from $3 billion, Bloomberg Businessweek said, citing unnamed sources. The cost would exceed that of the new World Trade Center and be three times as expensive as top-of-the-line downtown towers, the report said.
Well, reality distortion field generators don't come cheap.

With the action of Apple's stock, they'd better hop to completing the thing!

Don't believe me?

$5 billion for a flat building...come on now, you think all it is is a building???



To: John Koligman who wrote (152241)4/4/2013 4:07:39 PM
From: Kirk ©  Read Replies (2) | Respond to of 213182
 
Notice the similarity between Cisco's plans in 1999/2000 to build a city south of San Jose and now, 13 yrs later, it is still cutting back on what it had... to Apple's announcement when its market cap was also making huge gains to build a fancy new HQ....
Apple's planned 'spaceship' HQ will reportedly cost $5B The iPad maker has delayed construction on the project in order to cut $1 billion out of the budget, according to Bloomberg Businessweek.
I pointed out some other similarities to Cisco with its $500B market cap in an article last year
seekingalpha.com
(Cisco is just over $100B today....)

I heard a 10-yr Apple fan boy on CNBC today admit he just bought a Windows PC at about one fifth the price of his last Apple laptop....

I've been watching Apple for some time as I've made great money buying fallen leaders after they correct, such as buying Google in 2008 at $310 after it fell....


but I'd like to see some compelling reason Apple will grow rather than slowly lose share to lower cost commodity makers as smart phones move to commodity items like PCs and laptops have...
Maybe that 61.8% Fib support level I'll get interested....

IF Apple buys the naming rights to HP Pavilion where the SJ Sharks play....or the new 49ers stadium, that would probably be a short signal.