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Apple Conference Call

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11–20 of 87 posts

Re: Apple Conference Call

#11
post #10

Completely wild, uninformed, and ignorant guess: They'll buy Twitter or Intel.

In some ways I wish you were right, but I think anti-competition watch dogs may not approve of them buying Intel.

Well, they could always use some of that cash to buy the anti-competition watch dogs too ;)

Re: Apple Conference Call

#13
Dividend, book it. Major shareholders are probably getting antsy about it.

Just an example, if they paid out $50bn in a one time divvy, Fidelity would get around $2.6 billion.

Re: Apple Conference Call

#14

Completely wild, uninformed, and ignorant guess: They'll buy Twitter or Intel.

Intel's market cap is about twice their cash reserves, isn't it?

Less than twice, but still substantially more. Apple has $98bn [1] on hand and Intel's market cap is 138.54bn [2]

[1] http://www.chicagotribune.com/business/sns-rt-us-applebre82f...

[2] http://www.google.com/finance?q=intel

Re: Apple Conference Call

#15
post #6

Earlier quoted context omitted.

let's hope not, because stock buy backs can be interpreted as a signal that management thinks tremendous earnings growth is behind the company.

Why? I've read that they offer few benefits, but I've never heard this explanation. I also don't see how it makes sense for a company in their position?

Stock buy backs are used to reduce the number of outstanding shares available - which results in shares increasing in value due to earnings per share now increasing. It is one way to "mask" slowing growth.

Re: Apple Conference Call

#17
post #8
post #5

Earlier quoted context omitted.

My two worthless cents: an acquisition. Who they'll acquire is anyone's guess...a carrier (probably not), a content provider (maybe), or something more technical (my insane guess: ARM). Not that I know more than anyone else, but I don't feel Apple really paying a dividend out. They've never really seemed too beholden to shareholders in the past (well, the Steve Jobs past anyway), and I think they'd rather invest the…

Apple and Tim Cook have made it clear that they have more cash than what is required to run the business. Apple is spending billions on data infrastructure, manufacturing, pre-purchasing components and expanding retail operations; despite all these investments, they still have more cash than what they need. They will likely generate another $50B in cash this calendar year. Even if they want to maintain the $100B war…

You are assuming that the profits they reported this quarter will be the same next quarters, why?

Re: Apple Conference Call

#18
post #6
post #3

Earlier quoted context omitted.

I think they'd be more likely to buy back stock than to start granting dividends.

let's hope not, because stock buy backs can be interpreted as a signal that management thinks tremendous earnings growth is behind the company.

I think you're mixing up cause and effect here. Even if it's true that stock buy backs are frequently undertaken by companies which doubt their future growth potential (I have no idea if this is true), I don't think there's any danger of a buyback from Apple sending this signal. They're in a historically unique position, and whatever their decision, it's not going to be analyzed solely based on the status of other companies who have undertaken similar actions.

Re: Apple Conference Call

#19
post #13

Dividend, book it. Major shareholders are probably getting antsy about it. Just an example, if they paid out $50bn in a one time divvy, Fidelity would get around $2.6 billion.

And the value of Fidelity's Apple stock would go down by $2.6 billion. The $100 billion in cash is currently factored into the share price. Dispurse the cash and the market will discount the share price to match.

Personally I'm hoping for something more interesting than a special dividend. It does seem strange to have the announcement before the trading day begins though. I would think any big announcement would come after the close of trading.

Edit: Clarified that it is Fidelity's Apple stock that would be revalued.

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