or Connect
New Posts  All Forums:

Posts by backtomac

This is why investors want a dividend. So Apple doesn't pull a Microft and invest billions of dollars in businesses that loose money for years. Does x-box and bing ring a bell?
They have MORE than enough for this. Apples server farm in North Carolina cost 1-2 billion IIRC. The new 22 nm chip fab facility Intel is built to make Ivy Bridge chips cost 5 billion. Apple bought Chomp for 50 million (already paid for in the time you took to read this) Anobit reportedly cost 500 million. Apple have 100 billion in cash and raised 13 billion in profits in the last quarter.
To reward shareholders. They are owners of the business and should get a share of the profits. That's why people invest in businesses and own stocks. I think that the reason that Apple is 'under owned' and undervalued by some metrics is two fold. One, some institutional investors can only hold dividend paying stocks. I don't think this is a large number but some certainly are. Secondly, I think some may be avoiding Apple because they have not shown that they shareholder...
Apple can pay a dividend and not touch their enormous cash horde. Apple is easily throwing off 2-4 billion of profits per quarter. That could pay a $2 per share quarterly dividend and still add 1-2 billion of profits to their coffers.And with 100 billion of cash they have more than enough to fund any purchases they might want to make.
Are you really going to argue that banking is their core competency? If so please put forth some reasoning. I'd like to hear it.
Exactly. Its a ridiculous amount of profit that Apple is generating. They can build a server farm out of 2 weeks worth of Q4 profits. Any business or company that Apple might want to acquire that would need 100 billion in order to be bought, Intel (135 bil market cap) or Comcast (65 bil market cap), probably would be blocked by regulators.
All companies that buy back stock believe its undervalued. No company would buy back stock that they feel is fairly or overly valued.But even if you are buying a growth stock eventually you hope to share in its profits, no? That's the raison d'ĂȘtre of owning a business, either directly or through holding the stock. Apple have nearly 100 billion in cash and its equivalents. The only reason NOT to pay a dividend is if you think they are immediately going to start loosing...
I remember Steve talking about focus and how that meant saying NO to ideas. Some that are even good ideas but that by saying NO to some ideas that allowed their focus to be sharpest on the best ideas. This is a ridiculous idea for a tech company like Apple. Its beyond their core competency and I would sell Apple stock immediately if they announced such a stupid plan. I think others would as well.
Then isn't it in a tax sheltered account like an IRA? If not, why?Stock buybacks don't often transfer wealth to shareholders. Stocks can and do go down when companies buy back shares. Just ask HP. A dividend however is a direct transfer of company profits to shareholders. That's why a lot of people invest in stocks.
That's an interesting point you bring up. Maybe that's why Apple can't use use TB in its iDevices that run on ARM cpus. Maybe the iPhone and iPad will get Atom cpus when they are fabbed at the 22 nm process node. It sounds crazy but from what I've read, Atom at 22 nm will be a real competitor to ARM cpus. If Intel use their process advantage against ARM they may be able make cpus that ARM can't match in terms of performance and low power consumption. Its easy to right off...
New Posts  All Forums: