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Apple to host conference call Monday to discuss its $100B cash balance - Page 2

post #41 of 197
ok; was wondering if it was possible.
post #42 of 197
Quote:
Originally Posted by macslut View Post

I think the short version of the call will be:

Really, the only thing that I think could be a surprise here is whether or not Apple will take on some debt to finance dividends while leaving foreign money abroad until more favorable tax conditions occur.

Borrowing money to pay dividends is plain stupid. I doubt Apple would do that even though the analyst Toni Suck-on-eggi did recommend that.
post #43 of 197
Anyone here know how many shares are actually outstanding?

I mean come on, if they are going to declare a dividend ... What could it cost?

   I am long on my shares of AAPL at $37.00

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post #44 of 197
Arnold Kim: "So. Apple monorail?"

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #45 of 197
Quote:
Originally Posted by Dunks View Post

Sad. I wanted to invest in AAPL stock way back in 2003, but I couldn't spare the cash at the time (I was a university student living on 2 minute noodles).

Pity, Apple has appreciated 100x since March of 2003. a $10,000 investment would be $1M today.
post #46 of 197
Tim cook sold $11M worth of AAPL after taxes last week. Wouldn't a dividend lower the share price? Sounds like a good time to sell. Notice that the announcement is before the market opens, 6am pdt. Is Tim going to let this interfere with his morning workout if it is not absolutely necessary?
post #47 of 197
It is only a matter of time before the debt fueled global economy tanks. Regardless, we usually have a recession/market crash a couple times per decade. Any kind of recession will correct Apple stock along with the rest of the market. That would be time to buy stock, not after the current vertical spike.

Meanwhile, they can start handing out a dividend for yield of 1-2% and still keep a sustainable payout ratio.

No complaints regardless. Never thought this stock would get this hi.
post #48 of 197
Quote:
Originally Posted by mdriftmeyer View Post

If you wanted that you should have bought Microsoft during it's rise. They've overly split the stock to a point now that it will never go up for squat.

Well, it is up 25% YTD. Not as impressive as AAPL's 44%, but still.
post #49 of 197
Surprise everyone, we are going to purchase AMD outright and produce our own CPU's and GPU's

Intel can suck it!
post #50 of 197
Quote:
Originally Posted by efithian@mac.com View Post

Tim cook sold $11M worth of AAPL after taxes last week. Wouldn't a dividend lower the share price? Sounds like a good time to sell. Notice that the announcement is before the market opens, 6am pdt. Is Tim going to let this interfere with his morning workout if it is not absolutely necessary?

Tim Cook has $600M worth of restricted stock. $11M is a drop in the bucket.

A one-time dividend would lower the price by the amount of the dividend on the ex-dividend date, but you would get the dividend. That, by itself, should not affect the price tomorrow. Hard to say how the market will react tomorrow.
post #51 of 197
Quote:
Originally Posted by AjitMD View Post

Any kind of recession will correct Apple stock along with the rest of the market. That would be time to buy stock, not after the current vertical spike.

I don't know, I feel like the current spike *is* the correction. P/E has only finally risen to halfway reasonable levels.
post #52 of 197
Buyback makes little sense.

Runups happen for two reasons: (1) smart people believe in the future value of the company and are willing to risk a little more than people were risking yesterday. (2) people who think they are smart who somehow believe that 2012 AAPL @ $600 can split thrice and grow 10X after that like 1984 AAPL @ $3 did.

These are the same people who bought Cisco when it had triple-digit PE ratios. They won't have the patience to get any meaningful growth out of today's Apple with it's sensible under-20 PE ratio, and they won't have the stomach for the inevitable minor corrections. Apple has always been a long term buy for savvy investors, and that likely won't change.
post #53 of 197
Quote:
Originally Posted by Woodlink View Post

Anyone here know how many shares are actually outstanding?

I mean come on, if they are going to declare a dividend ... What could it cost?

932 million shares outstanding. Round number would be 1 billion. That makes it $100 per share in cash and marketable securities. That is why I can see them doing $20 per share special dividend without touching cash held overseas.

I believe they are now adding cash to the balance sheet at the rate of $75 per share per year. So, the wonderful problem of "too much cash" does not go away.

However, how they address overseas cash is key.
post #54 of 197
Just another example of how much Wall Street resembles Las Vegas.
When a company stops chasing profit and start chasing the betterment of their products, services, workforce, and customers, that will be the most valuable company in the world.
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When a company stops chasing profit and start chasing the betterment of their products, services, workforce, and customers, that will be the most valuable company in the world.
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post #55 of 197
They certainly wouldn't call a special conference call before trading if they decided to sit tight and do nothing with their war chest of cash.

IMO:

1) Announcement of how many iPads sold over the weekend.
2) One-time dividend announcement
3) Stock buy-back announcement


Because:

1) The timing of this announcement is perfectly coincidental
2) Growth is still too steep for a regular/quarterly dividend
3) Gives increased value to investors and gives Wall Street confirmed confidence of Apple's forward-looking sales and growth

No, I repeat, no stock split.



Whatever it is, there is no doubt in my mind that it's going to make a lot of people happy and bump the stock up 5-7%.
You talkin' to me?
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You talkin' to me?
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post #56 of 197
I'm hoping for no dividend, no buy back, and no split.
post #57 of 197
Quote:
Originally Posted by AppleGreen View Post

932 million shares outstanding. Round number would be 1 billion. That makes it $100 per share in cash and marketable securities. That is why I can see them doing $20 per share special dividend without touching cash held overseas.

I believe they are now adding cash to the balance sheet at the rate of $75 per share per year. So, the wonderful problem of "too much cash" does not go away.

However, how they address overseas cash is key.

Repatriate it and pay some taxes. They have been on a streak talking about job creation in the US. If they repatriated any substantial amount, they could brag about helping the gov't too.
When a company stops chasing profit and start chasing the betterment of their products, services, workforce, and customers, that will be the most valuable company in the world.
Reply
When a company stops chasing profit and start chasing the betterment of their products, services, workforce, and customers, that will be the most valuable company in the world.
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post #58 of 197
Quote:
Originally Posted by Apple ][ View Post

I'm hoping for no dividend, no buy back, and no split.

Ehh...what do you think they're going to do then?
post #59 of 197
Quote:
Originally Posted by Freshmaker View Post

Ehh...what do you think they're going to do then?

I don't know what they're going to announce. I just think that those things which I mentioned might not be a good thing for the stock longterm.
post #60 of 197
Quote:
Originally Posted by Buzzz View Post

It would be nice if at least some of that money went to some sort of scholarship fund. Especially for kids wanting to study engineering or some other similar feild of study.

Apple is not in the "give-away" business, nor should they be. I own their stock because they know how to make money. When they forget how to do this, I sell.

Proud AAPL stock owner.

 

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post #61 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.

The discussion will supposedly focus only on the matter of cash, so it should be a very short conference call.

Proud AAPL stock owner.

 

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post #62 of 197
Apple is going to convert it all to cash and give it all to Mike Daisey to hand out at the Foxconn gates.
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post #63 of 197
Quote:
Originally Posted by SpamSandwich View Post

Apple is not in the "give-away" business, nor should they be. I own their stock because they know how to make money. When they forget how to do this, I sell.

This is exactly why Apple should buy back all their stock over time and go private so they don't have to appease the champions of profit without getting punished for doing a good thing.
When a company stops chasing profit and start chasing the betterment of their products, services, workforce, and customers, that will be the most valuable company in the world.
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When a company stops chasing profit and start chasing the betterment of their products, services, workforce, and customers, that will be the most valuable company in the world.
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post #64 of 197
Quote:
Originally Posted by KPOM View Post

I'm guessing they will announce plans for a special dividend sometime in 2012. Right now, qualifying dividends are taxed at 15% rather than at normal income rates (i.e. the same as long term capital gains). That special tax treatment is set to expire at the end of the year.

I also think they will announce plans to invest a portion of their stockpile in an "incubator" for research and development (i.e. making private equity-type investments in startups). That would be productive use of the money, and potentially give Apple some leverage in the coming years in terms of intellectual property.

Apple has a big enough stockpile of cash and investments that today, it really looks like an investment manager and technology company rolled into one.

Perhaps they'll start an Apple SuperPAC and create a campaign for tax-free repatriation of overseas corporate profits. I'd vote for that.

Proud AAPL stock owner.

 

GOA

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post #65 of 197
Quote:
Originally Posted by SpamSandwich View Post

Apple is not in the "give-away" business, nor should they be. I own their stock because they know how to make money. When they forget how to do this, I sell.

I agree. Screw that charity garbage.

By the way, have you ever noticed that the people and politicians who scream the loudest for other people to give away their money are the ones who contribute the least to charity? Coincidence? I think fucking not.
post #66 of 197
Quote:
Originally Posted by SpamSandwich View Post

The discussion will supposedly focus only on the matter of cash, so it should be a very short conference call.

Dividends seem the most obvious answer so how do people think dividends would be distributed?

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #67 of 197
Quote:
Originally Posted by AppleGreen View Post

My guess: A one-time dividend. Something like $20 per share. I don't think Apple will commit to a regular dividend. They may announce a share buyback, but are they going to buy at these levels? They may just say that they will decide when it is appropriate to buy shares.

Perhaps, a one-time bonus for all workers including those at Foxconn? It will be interesting to see how they approach this.

I'd much rather they did a stock buyback. I'm not at all in favor of them trying to satisfy Wall Street versus minding their business.

Proud AAPL stock owner.

 

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post #68 of 197
Quote:
Originally Posted by Minnesota_Steve View Post

Of course that would be awesome. We'll see. But it would be a timely distribution in 2012 given that dividends will be taxed more heavily starting in 2013.

Just say "no" to a dividend.

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post #69 of 197
Quote:
Originally Posted by Rogifan View Post

Seems odd to me too. But I'm guessing a special dividend. I can't see them announcing some major acquisition.

The discussion will be limited to their cash reserves. That is all.

Proud AAPL stock owner.

 

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post #70 of 197
Quote:
Originally Posted by island hermit View Post

Apple is going to convert it all to cash and give it all to Mike Daisey to hand out at the Foxconn gates.

How about a bounty on Daisey's head.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #71 of 197
Quote:
Originally Posted by SolipsismX View Post

How about a bounty on Daisey's head.

That works too.
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post #72 of 197
Quote:
Originally Posted by CGJ View Post

I hope it's education pricing for iPads and automatic AppleCare

they wouldn't be having a conference call for something like that. they would just do it.

If they are having this call it is likely that they are either going to pay a dividend or split the stock or some such. or commit part of it to some kind of grant program to help schools get iPads etc into the classroom.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #73 of 197
Quote:
Originally Posted by Aizmov View Post

Acquisition(s) is the only right answer.

Tim Cook: "Today Apple would like to announce that we have made no decision at this time. Thank you for coming."

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Proud AAPL stock owner.

 

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post #74 of 197
Let's hope Apple just keeps it in the bank. Times will be tough one day. Guaranteed. History has proven that again and again.

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post #75 of 197
Quote:
Originally Posted by KPOM View Post

But if that were the case, they would just announce a deal tomorrow morning rather than pre-announce it today. Acquisitions are usually negotiated right up until the time the deal is announced, and it is not unusual for the terms to be discussed late into the night just before the press release is prepared.

Not necessarily. They could conceivably say that they've decided to continue to use their cash to make judicious acquisitions and the rest will be converted into small numismatic gold coins.

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post #76 of 197
Quote:
Originally Posted by SolipsismX View Post

I should have read the whole thing. I foolishly assumed that coming off the first weekend iPad sales would also include some news on the results.

They won't likely have the numbers by 9am to speak about it. Maybe from their stories but not the 3rd party shops.

Quote:
Seems odd this would have been decided this weekend and announced first thing before the market opens. Is this typical?

who says it was just decided. They might have known a month ago they were going to do this and waited so late in the weekend to avoid screwing with the stock value up or down

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #77 of 197
Quote:
Originally Posted by Market_Player View Post

Surprise everyone, we are going to purchase AMD outright and produce our own CPU's and GPU's

I have always thought that to be a good idea. Then all chips for all their products would be in-house.

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post #78 of 197
Quote:
Originally Posted by zoetmb View Post

Don't know how young your son is, but if he's still in elementary school (or less), you'd be benefitting his education more by keeping him off of computer devices for a while. Kids need to put pen to paper and learn to have the patience to read linear, non-interactive material. Give them highly interactive audio/video at too young an age and they'll have lots of problems acquiring reading skills.

so nice to see we have an education expert in the house. How many years of research and study have you been doing on the negative impact of non paper based education and where can we read the details about your work. I think many folks would find it fascinating to get some informed information and not the usual off base luddite tripe that is typically passed around as knowledge

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #79 of 197
Quote:
Originally Posted by Dickprinter View Post

They certainly wouldn't call a special conference call before trading if they decided to sit tight and do nothing with their war chest of cash.

IMO:

1) Announcement of how many iPads sold over the weekend.
2) One-time dividend announcement
3) Stock buy-back announcement

They will only talk about the cash issue, nothing else... if the press release is to be believed.

Proud AAPL stock owner.

 

GOA

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post #80 of 197
Quote:
Originally Posted by Apple ][ View Post

I'm hoping for no dividend, no buy back, and no split.

I'd settle for that as well.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

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