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Apple Conference Call

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Re: Apple Conference Call

#21

Post by joshu »

gwright wrote: post #19
trimbo wrote: 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…

Apple's market cap would go down by the amount of the dividend but it doesn't follow that Fidelity's stock price would drop, as their market cap does not reflect the value of their holdings.

Re: Apple Conference Call

#22

Post by cageface »

cobychapple wrote: post #9

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

If anything Apple seems to be moving away from Intel chips and emphasizing their own ARM designs. Much more likely they will release an ARM-based laptop.

Re: Apple Conference Call

#23

Post by gwright »

joshu wrote: post #21
gwright wrote: post #19

Earlier quoted context omitted.

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…

Apple's market cap would go down by the amount of the dividend but it doesn't follow that Fidelity's stock price would drop, as their market cap does not reflect the value of their holdings.

Yes. I was a bit ambiguous. I meant that the value of Apple stock that Fidelity owned would go down, not that Fidelity's own stock would drop in price.

Re: Apple Conference Call

#24

Post by uvTwitch »

rpledge wrote: post #4
cosjef wrote: post #2

Apple about to announce dividend program?

That's my guess. Or else they'll announce that they're starting a space program! My understanding is that ably $66 billion is offshore. I really expected them to sit on the cash until the US government gave them some sort of tax amnesty

A space program is about the only worthwhile thing apple could do with that money. The world doesn't need any more novel distractions, or rich investors.

Re: Apple Conference Call

#25

Post by joshu »

gwright wrote: post #23
joshu wrote: post #21

Earlier quoted context omitted.

Apple's market cap would go down by the amount of the dividend but it doesn't follow that Fidelity's stock price would drop, as their market cap does not reflect the value of their holdings.

Yes. I was a bit ambiguous. I meant that the value of Apple stock that Fidelity owned would go down, not that Fidelity's own stock would drop in price.

I'm not sure what your point is? The Fidelity fund would go up in value by the dividend. They could just buy more AAPL...

Re: Apple Conference Call

#27

Post by protomyth »

culturestate wrote: post #20
cobychapple wrote: post #9

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

The only major software company I can fathom Apple buying is Adobe, and even in that case there'd have to be a seismic shift in Apple's strategy.

If they bought Adobe, then the enterprise marketing at Apple would really be in for a change (Adobe has some big enterprise offerings). AMD / ATI is easily in their range.

Re: Apple Conference Call

#29

Post by gwright »

joshu wrote: post #25
gwright wrote: post #23

Earlier quoted context omitted.

Yes. I was a bit ambiguous. I meant that the value of Apple stock that Fidelity owned would go down, not that Fidelity's own stock would drop in price.

I'm not sure what your point is? The Fidelity fund would go up in value by the dividend. They could just buy more AAPL...

That is exactly my point. The people saying that a dividend is important seem to think that it is 'found money'. My point is that it is really just converting one asset into another (stock to cash).

Another way to convert stock to cash is to sell it.

I realize that there are tax considerations though that make this all a bit more complicated.

Re: Apple Conference Call

#30

Post by uptown »

culturestate wrote: post #20
cobychapple wrote: post #9

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

The only major software company I can fathom Apple buying is Adobe, and even in that case there'd have to be a seismic shift in Apple's strategy.

It could be Adobe. They've dumped Flash. They've embracing the iPad and released some truly innovative apps. Despite the historical rift between them and Apple, their tools are still the go-to suite for virtually every app created for iOS, and a strong contender when users seek alternatives to Apple's offerings like the Final Cut Pro X thing. Then there's this:

"I'm dying to do a blog on ADBE stock but can't do so now (we're in a quiet period). Maybe Monday, after earnings."

https://twitter.com/#!/kasthomas/status/180773095903207425

And the tweet right before that one:

"AAPL still cheap at $585. If you believe in next year's earnings == $50/share and a P/E multiple of 15, the stock should be at 750."

https://twitter.com/#!/kasthomas/status/180772911911682048

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