or Connect
AppleInsider › Forums › Investors › AAPL Investors › Dividend seen bringing \$4B additional investment dollars to Apple
New Posts  All Forums:Forum Nav:

# Dividend seen bringing \$4B additional investment dollars to Apple - Page 3

Quote:
Originally Posted by chabig

Let's be civil, shall we? I know how shares work.

Obviously, you don't since you think that if Apple buys back every share but one that the remaining share would be worth \$388. It would actually be worth the entire value of Apple Inc.

Quote:
Originally Posted by chabig

I see a flaw in your reasoning, and I'll use round numbers to demonstrate it. Suppose a company has 10 shares outstanding and a market cap of \$100. Each share is worth \$10. Now imagine the company buys 9 of the shares. They'll sink \$90 into the purchase and the value of that last share of stock is still \$10, because the company as a whole is still worth \$100.

You're horribly confused.

The only thing that I wasn't clear on is that my evaluation should have been based in INTRINSIC VALUE plus remaining cash rather than total value. It is basically the same thing when looking at current values. But after all the money has been used to buy shares, the numbers change.

Let's take your example. Assume that your company has 10 shares. The intrinsic value of the company is \$100. The company also has \$90 in cash. Current share price is \$10.00. You convince 9 of the share holders to sell their shares back to the company for \$10 (again, unrealistic). That means that the company has taken back 9 shares, leaving one in circulation. The intrinsic value is unchanged at \$100, but the cash is all gone. The net company value is therefore \$100, so the price for the one outstanding share is \$100, not \$10.

Now, it could never really apply like this because let's say you bought 4 of the shares for \$10 each. The value of the remaining shares would be \$25 (market cap would be \$100 intrinsic value plus the \$50 in cash remaining for a total value of \$150, but only 6 shares remain so the price would be \$25 each. There wouldn't be enough money to buy all of them. This is why when a company wants to acquire another company, they work out a deal in advance to buy all the shares (or a controlling interest). Buying up shares on the market drives up the price to the point that a company would end up having to pay considerably more than the market value.

Now, in the case of Apple, the INTRINSIC value of the company is around \$280 B (\$360 B market cap less \$80 B cash). If Apple were somehow able to buy all the shares but one with their \$80 B cash (obviously, not possible), the one remaining share would be worth \$280 B.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Quote:
Originally Posted by ssls6

What I want to see under Cook....leverage the brand and go for their throats.

1) Launch a \$500 notebook & desktop, pocket around \$100 per sku. Stop ignoring this market.

2) Add phone models to the lineup or license I0S to select makers, pocket about \$50 per sku. Allow the partner to use the A5 or whatever to help drive down costs. Position the phones under your flagship, using old models for you "no-cost" option isn't a great strategy. Make the industry work for you not against you.

3) Expand Apple TV to include apps and Siri, put a mic in the simple remote. There are already apps to control cable, satellite receivers.

Once you've thrown down a challenge, you must play offense and defense....defense alone will not do it.

Thank God you aren't in a position to make any of your ideas happen.

"A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools." Douglas Adams

"A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools." Douglas Adams

Quote:
Originally Posted by ssls6

Quote:
Originally Posted by Tallest Skil

My equally nonsensical post, typed as satire of the people who think they know better than Apple how to release good products, posted about two hours after.

Wow, seems I was spot on about what these people want, eh?
Quote:
Originally Posted by ssls6

What I want to see under Cook....leverage the brand and go for their throats.

1) Launch a \$500 notebook & desktop, pocket around \$100 per sku. Stop ignoring this market.

The \$500 portable is called iPad. The \$500 desktop is Mac mini.

Apple cannot, and should not ever try to compete at the low end. Look what happened in the 90's when they tried - it nearly bankrupted the company. Just because they CAN build something, does not mean they SHOULD build something. The fantasy of the mythical \$xxx low-end Macs allowing Apple to suddenly push MS aside and take over the desktop is just that - pure fantasy.

My holdings in APPL have done just fine, thank you, without the company having to resort to making crap. I wish I could say the same for HP, which hopefully can turn a corner, remember who they really are, and exit their "race to the bottom" with hardware sales.
Quote:
Originally Posted by cvaldes1831

The problem with television isn't bandwidth: there's plenty of that for streaming movies and regular programs.
.

Who told you that?

https://discussions.apple.com/message/8900960#8900960

https://discussions.apple.com/message/9692844#9692844
Quote:
Originally Posted by eldoon

Except we're talking about service providers, not manufacturers. You can buy a PA Semi and easily export the chips anywhere. You can't buy a Sprint or Comcast and provide service in India, China, or anywhere else. Once you start going down this path, you'd wind up dropping a whole lot more coin to build/buy operators in every country to keep the strategy going.

First you have to show this works in the U.S. as proof of concept. It would start as a US product. This would be unlike any other Apple product...but Apple has never before seen the need to acquire close to 100B in cash.

This would never work in a country with unreliable high speed internet. I think that is kind of obvious...no?
Apple isn't interested in collecting a measly \$4 billion. They have \$80 billion in the bank, now. They want others to stop copying them.
New Posts  All Forums:Forum Nav:
Return Home
Back to Forum: AAPL Investors
• Dividend seen bringing \$4B additional investment dollars to Apple
AppleInsider › Forums › Investors › AAPL Investors › Dividend seen bringing \$4B additional investment dollars to Apple