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Apple to host conference call Monday to discuss its $100B cash balance - Page 5

post #161 of 197
Sharp Corp of Japan needs cash badly and Apple can pick them up cheap right now. This would help Apple detatch themselves from Samsung and give them their own large manufacturing facilities and even solar panel production for the roofs of their Apple Stores, new HQ, existing offices, and iCloud data centers.

If Sharp became financially unstable, that could be very dangerous for Apple right now. While Apple might not buy them outright, a huge percentage stake does make sense for many reasons.

http://www.bloomberg.com/news/2012-0...rt-of-day.html

Quote:
“Investors are coming to suspect that Sharp’s slump is more serious than thought,” said Makoto Kikuchi, chief executive officer at Myojo Asset Management Co. in Tokyo. “There is a concern over possible fundraising as losses are expected to continue next year.”

Sharp doesn’t have any promising business large enough to pull the company out of its slump
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post #162 of 197
I think it will likely be a divdend or buy back. Tim's way of putting down a marker now he's in charge.

However I would like to see some major acquisitions intstead. ARM or Samsung would do nicely.

I know it wouldn't happen
post #163 of 197
If not a dividend (which IMO I would prefer Apple refrained from issuing just yet), my guess would be….

Massive investment into developing 'green' energy sources. This would benefit Apple be silencing critics, boosting Apple street cred, and generating IP of value into the future.

Apple could boast that it's data centers and products were manufactured using 100% green energy.


I'm not really a big fan of the 'green' movement, but I could see this being a positive and beneficial way to waste large piles of cash.
post #164 of 197
CNBC is reporting it will likely be an annual 2.5% dividend.
post #165 of 197
Quote:
Originally Posted by mdriftmeyer View Post

[Microsoft] overly split the stock to a point now that it will never go up for squat.

MSFT will never increase significantly in value because Microsoft will never again enjoy rapid earnings growth. Splitting the stock has nothing to do with it.

Apple could announce a 10 for 1 stock split and the effect on market cap would be negligible. The advantage of a stock split is that it would slightly increase liquidity for small investors, leading to negligible upward pressure on stock price. The disadvantage is that it would increase commissions for some investors, leading to negligible downward pressure on stock price. Which effect would be greater is anyone's guess. We can only say that the effect would be negligible.
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post #166 of 197
Apple should buy Adobe.
post #167 of 197
Quote:
Originally Posted by Commodification View Post

Sharp Corp of Japan needs cash badly and Apple can pick them up cheap right now. This would help Apple detatch themselves from Samsung and give them their own large manufacturing facilities and even solar panel production for the roofs of their Apple Stores, new HQ, existing offices, and iCloud data centers.

If Sharp became financially unstable, that could be very dangerous for Apple right now. While Apple might not buy them outright, a huge percentage stake does make sense for many reasons.

http://www.bloomberg.com/news/2012-0...rt-of-day.html

It was Tim Cook who engineered a large portion of the outsourcing of Apple manufacturing to Taiwanese/Chinese firms in the first place. While Apple puts a decent amount of money into R&D, at the end of the day, the actual production of components and final assembly is still handled by 3rd parties. I live in Northern California and I still hear about the Elk Grove facility that is mostly empty and unused by Apple, years after it was built.

Based on that history, it seems somewhat unlikely that Apple would purposely choose to get into the manufacturing game again. Tim Cook seems perfectly happy to have the flexibility to pick and choose his suppliers based on the needs of the company and products. If Omnivision has the camera sensors you need today, but Sony has them tomorrow, just switch! PortalPlayer doesn't have the tech you need anymore, go with someone else! It seems the advantages of relying on 3rd party manufacturers still tends to outweigh the benefits of bringing component manufacturing or assembly in-house.
post #168 of 197
Quote:
Originally Posted by SolipsismX View Post

I'd like a stock buy back and for Apple to announce plans to split the stock. I'm expecting a dividend and an announcement of how successful this weekend's iPads were.

edit: I withdraw my buyback comment for a time when the stock market is suffering.

A stock buyback makes most sense when the market is suffering, and the stock is cheap.
post #169 of 197
Quote:
Originally Posted by jd_in_sb View Post

Let's hope Apple just keeps it in the bank. Times will be tough one day. Guaranteed. History has proven that again and again.

True, but will times ever be so tough that Apple will need over $100Bn to bail them out? Has any company ever held such a large cash reserve?
post #170 of 197
Quote:
Originally Posted by jragosta View Post

Then forget AAPL and MSFT. Provide evidence that a dividend increases share price. There is no such evidence.



Irrelevant-it doesn't matter why they did it. The fact is that Microsoft's large one-time dividend decreased share price by roughly the amount of the dividend and the same has historically been true.

For example, look at dividends issued for mutual finds. Invariably, the mutual fund drops by roughly the amount of the dividend on the ex-dividend date.

It is explained here:
http://www.ehow.com/info_8159878_eff...are-price.html
"On the ex-dividend date, the share price will open at the previous day closing price minus the amount of the dividend."

But feel free to provide evidence to support your claim that a dividend would raise the share price.



Historically, you're wrong. Almost every time there has been a large one-time dividend (either mutual funds or stocks), the share price dropped by roughly the amount of the dividend -and that's exactly what basic principles would predict. Please show a single example where a large one-time dividend increased share price. There aren't any.

As for a steady dividend, there is also no evidence that it would increase dividends. In fact, if you look at historical values, dividend paying stocks tend to grow more slowly than non-dividend stocks because a company generally starts issuing a dividend when it is no longer growing. (There are exceptions. First, dividends tend to increase share value in emerging markets. There are studies in Pakistan and early in China's market history which confirm this. But the effect fails in developed markets. Second, if the company is a slow-growing, very mature stock, a dividend can have a positive effect, but that doesn't apply to Apple).

That's not to say that it would happen in this case, but there is absolutely no evidence that issuing a dividend would increase share price.



That hasn't happened historically. Investors (particularly institutional ones) are not so easily hoodwinked as you think.



Again, there's no historical evidence to support that claim.




I can't prove what would happen in the case of Apple. What I can show is that every time there's a large dividend, the share price drops on the ex-dividend date. That's true whether it's a stock or a mutual fund.



Possibly, but the point is that the TOTAL tax Apple would pay on repatriating earnings would not be any greater than if the money were earned in the U.S.



Again, you're wrong. Share buybacks DO increase the average share price - because there are fewer shares in circulation. It's simple math.

Or perhaps you're arguing that the multiple that investors use would be LOWER if Apple buys back shares? That's completely illogical. You're arguing that the investors would pay a GREATER multiple of Apple pays a dividend, leaving the same number of shares in circulation, but a lower multiple if they're taking share out of circulation. That just isn't a rational argument.



Again, forget Microsoft. Look up any other company that did a large one-time distribution. Or look up any mutual fund which did a large distribution. The share price drops by the amount of the distribution on the ex-dividend date.



Good thing no one would be investing based solely on your opinion. That would be completely irrational. Why in the world would the share price go up 15% if they announce an on-going 2% dividend? Furthermore, as pointed out above, there's no evidence that initiating a dividend causes ANY long term share price effect. But feel free to try to support your claim.


Jragosta-
Those quotes aren't mine, can you please fix your post and credit them to whoever made them??
post #171 of 197
Quote:
Originally Posted by mcarling View Post

MSFT will never increase significantly in value because Microsoft will never again enjoy rapid earnings growth. Splitting the stock has nothing to do with it.

Apple could announce a 10 for 1 stock split and the effect on market cap would be negligible. The advantage of a stock split is that it would slightly increase liquidity for small investors, leading to negligible upward pressure on stock price. The disadvantage is that it would increase commissions for some investors, leading to negligible downward pressure on stock price. Which effect would be greater is anyone's guess. We can only say that the effect would be negligible.

They split the stock 9 times. They've issued a dividend 33 times since their last split of 2002.

Microsoft on it's rise and massive split to generate low stock prices for more buy in which allowed them to smother and buy out competitors resulted in a race to the bottom PC Market with them the only OEM in town.

Apple does a race to the top in quality products and enjoys extremely modest PC market share and a consistently market in the embedded space for indispensible devices. They again don't have a monopoly.

They need no split and I doubt Apple will issue a split. Most of their money is in long-term securities. I don't see them doing a reverse stock buy or a split.

I see them investing in areas that will position them for future markets and will allow them to leverage those securities to buy materials in even larger quantities forcing their future competitors to wait.

I'd expect them to announce not just one but maybe 2 other near flagship campus projects that Steve most likely signed off on and co-designed along with the flag ship.

You don't spend several quarters discussing whether or not to buy back stock, issue a dividend and/or announce a split. You spend several quarters engaging in a future strategy already designed in conjunction with it's co-founder before he died.

Apple may not actually directly get into Manufacturing but they sure easily could invest ten billion in other Fab plans by already seasoned manufacturers ensuring them a guaranteed slot of scaling up in production for current and future roadmap products.

Material Science is where all the break throughs are happening and Apple will be investing in areas that they can get the most leverage out of against their perceived competitors.
post #172 of 197
The worst idea would be to pay dividends. Some analysts are quoted saying this would be great idea.... Apple should ditch Wall Street and go private with that cash. This $100 billion cash puts Apple in a great position to compete and the resources to invest in research. As soon as they hand out that cash, they'll go down that long gray road towards craptastic again.

I think Steve Jobs would never do it just to please Wall Street. A hard lesson he learned from being kicked out of Apple the first time.
post #173 of 197
AAPL is up to over 602 in pre-market this morning. Two and one-half hours until announcement.

Go AAPL...
post #174 of 197
A surprise announcement the Apple now owns Microsoft and Google, Steve Balmer and Eric Schmidt dressed in coveralls, shovels in hand ready to report to their new jobs planting apricot trees at Apple's new campus.
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post #175 of 197
About the last thing Apple will want to do is get back into manufacturing. A better idea would be to set up Apple Labs in India or Israel or Singapore and employ engineers and lawyers to develop and patent technologies that might be useful to Apple in the future.

Quote:
Originally Posted by mdriftmeyer View Post

[Microsoft] split the stock 9 times. They've issued a dividend 33 times since their last split of 2002.

Microsoft on it's rise and massive split to generate low stock prices for more buy in which allowed them to smother and buy out competitors resulted in a race to the bottom PC Market with them the only OEM in town.

Microsoft stamping out the competition had nothing to do with their stock splits. They are unrelated. It would be a stretch, but one could try to argue that stamping out the competition enabled the stock splits. There is no basis for an argument that the stock splits enabled stamping out the competition. If a stock split could enable any such thing, we would see hundreds of times more stock splits than we actually see.
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post #176 of 197
Quote:
Originally Posted by SolipsismX View Post

How about buying a big ass laser and rights to the moon's surface to carve out an Apple logo on it? I think $100 billion could achieve that.

Moon's surface is not available for sale, just as Mars or anything outside of the Earth atmosphere. International conventions specify that quite clearly... Everyone outside of the USA wants to prevent the USA doing to Space what they did to Earth, or we'll have nowhere to go once this world is finally completely unusable due to (how's that called? oh yeah) "free enterprise with no morals".

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Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

 

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post #177 of 197
Quote:
Originally Posted by Jimbo1234 View Post

I think it will likely be a divdend or buy back. Tim's way of putting down a marker now he's in charge.

However I would like to see some major acquisitions intstead. ARM or Samsung would do nicely.

I know it wouldn't happen

ARM? I don't see why not.

but Samsung? It seems like most AI'er still seem to believe that Samsung == Foxconn (or Apple == Walmart).
post #178 of 197
Might be a major acquisition.

Maybe they will state no dividend and no buy back to end the speculation and stabilise the share price.
post #179 of 197
Quote:
Originally Posted by Hazzard View Post

Call me one of the crazy ones... but just Think Different with me for a second...

Nielsen estimates that the number of U.S. Television Homes is around 115 Million...

Apple has near 100 Billion dollars in the bank...

The cost of the Apple TV to build is near $65...

The cost to provide an Apple TV to every Television Home in the US would be about $7.5 billion dollars... less than 10% of their 100 billion reserve.

Lets speculate that Apple is poised to open the app store on the Apple TV... a 30% cut of every app purchased in 115 million homes... an Apple hardware presence in 115 million homes... a movie rental/purchase platform in 115 million homes... a potential gaming goldmine...

The networks would no longer be able to say no to Apple; it just wouldn't be smart business for them to resist at that point...

I have said it for years... The Apple TV is the most important piece of hardware in Apple's long term strategy... they classify it as a "hobby"... I classify it as the ultimate Trojan Horse...

I wouldn't be surprised if this is Apple's announcement... huge penetration gains in a market Apple is extremely interested in dominating... very low cost with huge returns... it's crazy... but it's just crazy enough to work.

You realise you're suggesting a hardware company give their hardware away for free, to subsidise content and software sales on which their margins are intentionally razor-thin? You realise also that they just put a new AppleTV on the market for $99 three days ago and people have already paid for them? You realise that giving away $99 worth of hardware for free just to saturate the market is legally classified as dumping and is an anticompetitive crime? Do you have any idea how hard it would be to ramp production of the AppleTV to produce over 100 million of the damn things?

Anyway, my best guess is acquisitions, large strategic acquisitions, possibly coupled with a dividend - either a small continuing one, or a largish (Say $20) one-off one.

As for who they should acquire, the obvious answers are any one or more of Twitter, a medium to large video game publisher (EA, the world Number 2, is only worth around $6 Billion so a smaller outfit or two would be dirt cheap) and maybe Adobe, though I'd have questions about whether the SEC & EU would be okay with that.

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post #180 of 197
Quote:
Originally Posted by Techboy View Post

The worst idea would be to pay dividends. Some analysts are quoted saying this would be great idea.... Apple should ditch Wall Street and go private with that cash. This $100 billion cash puts Apple in a great position to compete and the resources to invest in research. As soon as they hand out that cash, they'll go down that long gray road towards craptastic again.

I think Steve Jobs would never do it just to please Wall Street. A hard lesson he learned from being kicked out of Apple the first time.

I don't think they will go private. All the directors make a fortune from their stock options.

Being quoted also means Apple fanbois can buy into the company, which probably encourages them to keep buying Apple kit.
post #181 of 197
Quote:
Originally Posted by syracuse View Post

jragosta, is at it again...

You do realize that if a stock didn't drop the amount of the dividend after ex-date their would be an ARBITRAGE that would be exploited by hedge funds?

Come on guy stop being so pedantic, and STOP with the Microsoft comparisons.

APPLE IS NOT MICROSOFT


Weren't you the one that said the stock was going to drop if they didn't announce a dividend at the previous shareholder's meeting?
post #182 of 197
I hope they don't announce a dividend and give it all away to already wealthy bankers.

Use it for major acquisitions to help their customers: Sony, Sharp, Samsung, Adobe, Twitter, Cable Companies, Become a MVNO, etc.

I think most of the cash is held outside the US so they would have to buy non US companies to avoid tax.

This has certainly perked up my Monday morning lol
post #183 of 197
Here's what I think, I was watching the business news this morning and they're like "Apple has to do something with it or the government might get out the stick."

We could see a dividend, it seems unwise unless the government is going to force them to do something with the cash or have to pay more taxes, or it starts earning negative interest (just what bank has Apple's money anyway?)

We could see the stock split, but it ultimately accomplishes nothing except making it more affordable for individual investors.

We could see AAPL become AAPL.A and AAPL.B ala Berkshire Hathaway, and the B stock splitting or pay out smaller dividends. (BRK.A's stock is over 100K/share while BRK.B is about 80.) I'm not sure if this is any better than just splitting the stock.

What makes the most amount of sense for Apple is to make acquisitions. Buying AMD would make more sense if their Intel relationship is on the rocks, or if they want to rescue AMD from mismanagement, put "Apple designed" graphics chips in their own devices and APU's in macbook air's. I don't think this would happen because it would remove AMD as a competitor, as I don't think Apple would make chips for anyone else, leaving Intel with a monopoly that ultimately raises the prices of all PC's. Buying Qualcomm or broadcom would have the same problem.

Or Apple could just load all their money into a rocket and launch it into deepspace
post #184 of 197
I was going to suggest something along the lines off buying the CA state government by paying off its debt - but $100 billion would only be about 1/20th of the state debt.

what they are really going to do it build a space craft to leave the planet in search of another to colonize - and the announcement is to start the process of deciding who gets to go.

the reason they are doing this is because they know that civilization will end in December this year - it is the only explanation as to why the new iPad is called "the new iPad" instead of the iPad 3 or iPad HD or iPad RD (retina Display) - since it will be the last iPad produced on this planet.

post #185 of 197
Please no dividends! Do something "to give back" with that money.
post #186 of 197
Quote:
Originally Posted by walshbj View Post

Jragosta-
Those quotes aren't mine, can you please fix your post and credit them to whoever made them??

Sorry. Fixed.

Quote:
Originally Posted by Shaun, UK View Post

I hope they don't announce a dividend and give it all away to already wealthy bankers.

Use it for major acquisitions to help their customers: Sony, Sharp, Samsung, Adobe, Twitter, Cable Companies, Become a MVNO, etc.

I think most of the cash is held outside the US so they would have to buy non US companies to avoid tax.

This has certainly perked up my Monday morning lol

Sorry, but a dividend goes to ALL investors - not just the wealthy ones. Besides. The money belongs to the investors so why shouldn't they be entitled to it?

Ultimately, Apple's job is to maximize shareholder returns. For all shareholders. If Apple thinks they can do that by buying a company, then that's what they should do. If they don't have anything that's worth more than distributing the money to the shareholders, that's what they should do.

Of the things you suggested, only Adobe makes much sense. Buying a stodgy, old, existing company makes zero sense. It would cost Apple more to 'fix' Sharp or Sony than it would cost to build their own products.

Personally, I would like to see Apple create another new revolution. While I don't personally see an Apple TV set as the solution, that has the potential to create another multi-tens of billions of dollars market for Apple. Apple has shown that they have the ability to create value in seemingly mature markets.

Another option that makes sense to me is someone's idea of investing many billions of dollars into the energy market. Renewable and alternative energies are at the point where they're very close to being competitive. The cost renewables continues to drop at significant rates and there's every reason to believe that the cost will be lower than conventional fuels at some time. Apple could revolutionize THAT industry, make a lot of money, and do some great things for our economy.

But, in the end, it's Apple's decision what to do.

Quote:
Originally Posted by gijoeinla View Post

I disagree with your arguments regarding my post.

1). Is it not true that THE hottest topic in the analytical world is Apple is coming forward with a brand new connected device for the home by the end of the year. Is it not true that there has been a flood of information "claiming" Apple is having trouble getting content providers on board with "a new service" Apple plans to provide with this device? Notice I'm not using the word TV.
Just answer...True?

2). Content is King. Remember that statement. In certain circles here in LA it's pretty likely Apple itself is going to start if not already acquiring content. You don't have access to that information - I do.

3) Why o why would Apple NOT make a play into Netflix -- it's for the CONTENT deals Doh! It's not the subs their looking for...Gee. Apple got 300 million SUBS of it's own, duh.

4) If Apple can't get ANY major content companies to open up a totally new CONTENT delivery stream for their "new device" then WTF are they gonna offer? Only APP content? Yea right.

5) Um, they already ARE competitors in many revenue arenas against people like ATT and VERIZON, DirecTV, Dish and so on.... it's called iTunes and it involves CONTENT distribution.

Apple MUST make a move in this arena, and soon if it's gonna seriously launch a new device that is supposed to "remake the TV experience". You can't do that by adopting OLD strategies.

So chill.

All sheer speculation - and it completely ignores what I said.

Quote:
Originally Posted by syracuse View Post

jragosta, is at it again...

You do realize that if a stock didn't drop the amount of the dividend after ex-date their would be an ARBITRAGE that would be exploited by hedge funds?

Come on guy stop being so pedantic, and STOP with the Microsoft comparisons.

APPLE IS NOT MICROSOFT

It doesn't matter if Apple is Microsoft. A bunch of people (I don't know if it was you) were arguing that a massive one-time dividend would increase the share value. I was pointing out that that was wrong. A massive one-time dividend would DECREASE the share value by the amount of the dividend. Sounds like you came around to agreeing with me.

For an on-going dividend, there is absolutely no evidence that it would increase share value in the long run and some evidence that it would not. I'm simply asking people advocating that to provide evidence of their claims. After all, don't you think it's reasonable that if you're going to suggest spending many billions of dollars that you should need to show that it will accomplish the objective?


Now, I'm not saying that Apple won't issue a dividend. I don't have a crystal ball. I am, however, saying that if they do so, I will be disappointed for two reasons:
1. Evidence and history shows that buying back stock has a greater value without creating a taxable event for the shareholders.

And, more importantly:
2. Issuing a dividend suggests that Apple has reached the point that they no longer believe that they can do more with my money than I can. They have a solid history (at least 15 years worth) of showing the ability to turn everything they touch into gold. I would rather see them reinvent more industries or get into future growth markets than simply say "we don't have anywhere reasonable to invest this money, so we're turning it back to the shareholders".
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post #187 of 197
Trying to come at this from a different direction

Where does Apple see itself as a company in 2015? In 2025?

What does Apple need to do to get to where they want to be?

What does Apple need more than cash?

What can Apple buy that doesn't involve a lot of regulations or antitrust litigation?

Does Apple care what Wall Street thinks or even the large or small investor?

Cash provides opportunity -- is there anything better than cash to provide the same opportunity?

Cash provides leverage - is there anything they can do with the cash to gain more leverage?


As anyone here, I can think of lots of things that I would like to see them do However, what should Apple do that's good for Apple?
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post #188 of 197
Quote:
Originally Posted by jragosta View Post

Then forget AAPL and MSFT. Provide evidence that a dividend increases share price. There is no such evidence.



Irrelevant-it doesn't matter why they did it. The fact is that Microsoft's large one-time dividend decreased share price by roughly the amount of the dividend and the same has historically been true.

For example, look at dividends issued for mutual finds. Invariably, the mutual fund drops by roughly the amount of the dividend on the ex-dividend date.

It is explained here:
http://www.ehow.com/info_8159878_eff...are-price.html
"On the ex-dividend date, the share price will open at the previous day closing price minus the amount of the dividend."

But feel free to provide evidence to support your claim that a dividend would raise the share price.



Historically, you're wrong. Almost every time there has been a large one-time dividend (either mutual funds or stocks), the share price dropped by roughly the amount of the dividend -and that's exactly what basic principles would predict. Please show a single example where a large one-time dividend increased share price. There aren't any.

As for a steady dividend, there is also no evidence that it would increase dividends. In fact, if you look at historical values, dividend paying stocks tend to grow more slowly than non-dividend stocks because a company generally starts issuing a dividend when it is no longer growing. (There are exceptions. First, dividends tend to increase share value in emerging markets. There are studies in Pakistan and early in China's market history which confirm this. But the effect fails in developed markets. Second, if the company is a slow-growing, very mature stock, a dividend can have a positive effect, but that doesn't apply to Apple).

That's not to say that it would happen in this case, but there is absolutely no evidence that issuing a dividend would increase share price.



That hasn't happened historically. Investors (particularly institutional ones) are not so easily hoodwinked as you think.



Again, there's no historical evidence to support that claim.




I can't prove what would happen in the case of Apple. What I can show is that every time there's a large dividend, the share price drops on the ex-dividend date. That's true whether it's a stock or a mutual fund.



Possibly, but the point is that the TOTAL tax Apple would pay on repatriating earnings would not be any greater than if the money were earned in the U.S.



Again, you're wrong. Share buybacks DO increase the average share price - because there are fewer shares in circulation. It's simple math.

Or perhaps you're arguing that the multiple that investors use would be LOWER if Apple buys back shares? That's completely illogical. You're arguing that the investors would pay a GREATER multiple of Apple pays a dividend, leaving the same number of shares in circulation, but a lower multiple if they're taking share out of circulation. That just isn't a rational argument.



Again, forget Microsoft. Look up any other company that did a large one-time distribution. Or look up any mutual fund which did a large distribution. The share price drops by the amount of the distribution on the ex-dividend date.



Good thing no one would be investing based solely on your opinion. That would be completely irrational. Why in the world would the share price go up 15% if they announce an on-going 2% dividend? Furthermore, as pointed out above, there's no evidence that initiating a dividend causes ANY long term share price effect. But feel free to try to support your claim.

You should learn how to quote properly. Most of them here are wrong. Some are mine.

At any rate, there is no proof for any of what you say, just opinions. I've seen stock prices move up and down over the almost 50 years I've been investing. The reasons vary, and many of them are not rational. I've seen stocks move up because of a dividend, and down.

The problem with your argument is that you don't understand how this works for different companies. I'm not surprised, because it seems as though most financial people don't either.

An example of that is your error about taxes. From the NY Times article about this, this morning:

Quote:
\tWhile Apple ended last year with a cash balance of $97.6 billion, it cannot easily gain access to most of that for a dividend because roughly 66 percent of the money is held by its foreign subsidiaries. To bring that cash back to the United States, Apple would have to pay hefty repatriation taxes, very likely more than 30 percent.

I do want to add that it's possible that Apple's stock could fall a bit, at first, if a large one time disbursement is given. Your misunderstanding of what I said is that you didn't take into account that I said that the stock would likely recover and go on the do what it would have done anyway.
post #189 of 197
Announced. 2.65 quarterly dividend and 10B share repurchase
post #190 of 197
Apple can give away all the income/profits above $50 billion (or some number) as dividends and share holders will still make out. Keep $50B in the bank for purchases of companies, patents, and developing crazy awesome screens and tech for new products.
post #191 of 197
Quote:
Originally Posted by melgross View Post

You should learn how to quote properly. Most of them here are wrong. Some are mine.

At any rate, there is no proof for any of what you say, just opinions. I've seen stock prices move up and down over the almost 50 years I've been investing. The reasons vary, and many of them are not rational. I've seen stocks move up because of a dividend, and down.

The problem with your argument is that you don't understand how this works for different companies. I'm not surprised, because it seems as though most financial people don't either.

An example of that is your error about taxes. From the NY Times article about this, this morning:

I can't find a link, but, AIR, Apple said that they have paid taxes or set aside money to pay taxes on some of their overseas income.

Trading suspended on a AAPL at $599 and change.
"Swift generally gets you to the right way much quicker." - auxio -

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"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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post #192 of 197
Quote:
Originally Posted by Dick Applebaum View Post

I can't find a link, but, AIR, Apple said that they have paid taxes or set aside money to pay taxes on some of their overseas income.

Trading suspended on a AAPL at $599 and change.

We'll find out shortly. The dividend will disappoint some. The stock is up to $600 in Pre trading, but if it's too disappointing, it may drop.
post #193 of 197
The buyback portion of this isn't as bad as I thought it could be. They ate mostly accounting for share growth due to compensation. So it's not an unneeded attempt to increase equity per share. It's an attempt to maintain equity per share.
post #194 of 197
Quote:
Originally Posted by JeffDM View Post

Weren't you the one that said the stock was going to drop if they didn't announce a dividend at the previous shareholder's meeting?

Tim Cook, at the shareholder's meeting, pretty much telegraphed to the market that they were going to issue a dividend and stock buyback...

Tim Cook: “On cash, we’ve been thinking about cash very deeply, the board has been looking into what is in shareholders’ best interest … We’ve spent billions on … Supply chain, retail, etc …. My message there is that the board and the management team are thinking about this very deeply … And we will do what we think is in the best interest of shareholders."

In year's past they were very dismissive about discussing uses for their growing cash balance.
post #195 of 197
Quote:
Originally Posted by syracuse View Post

Tim Cook, at the shareholder's meeting, pretty much telegraphed to the market that they were going to issue a dividend and stock buyback...

Tim Cook: “On cash, we’ve been thinking about cash very deeply, the board has been looking into what is in shareholders’ best interest … We’ve spent billions on … Supply chain, retail, etc …. My message there is that the board and the management team are thinking about this very deeply … And we will do what we think is in the best interest of shareholders."

In year's past they were very dismissive about discussing uses for their growing cash balance.

Still, it was not an announcement or commitment, taking anything short of that is goal post moving. It's hard to get anything more non-committal in those comments.
post #196 of 197
Quote:
Originally Posted by JeffDM View Post

Still, it was not an announcement or commitment, taking anything short of that is goal post moving. It's hard to get anything more non-committal in those comments.

Do you think investors were thinking a dividend/buyback was coming OR do you think it was a complete shock to the market?

It certainly wasn't a shock to me. I'm not moving any goal posts, when Cook made those comments they were different from the the past.

Sometimes you have to read between the lines Jeff

http://online.wsj.com/article/SB1000...LEFTTopStories
post #197 of 197
Quote:
Originally Posted by jragosta View Post

Sorry, but a dividend goes to ALL investors - not just the wealthy ones. Besides. The money belongs to the investors so why shouldn't they be entitled to it?

Let the pillaging and looting of Apple begin.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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