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Apple to host conference call Monday to discuss its $100B cash balance - Page 3

post #81 of 197
Quote:
Originally Posted by SpamSandwich View Post

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

Hahaha... as much as I'd like a dividend, the comedy value of that would be worth not getting one.
post #82 of 197
They're buying three states in northern Mexico, annexing them to the US, and setting up solar-powered, fully-robotic factories so that Apple products can be made locally.

Originally posted by Marvin

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post #83 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.

Ten cents per share dividend. That should shut up the whiners about not getting any dividend. I hope Apple decides to wait until the cash reserve grows to $150 billion and the share price reaches $700 before issuing a dividend and that's what the conference is all about.
post #84 of 197
Quote:
Originally Posted by AppleZilla View Post

Buy half of Detroit, build factories, leave China.

Apple, Made in America.

Rule.

Well.. Not very likely, but seems in the realm of possible(ok not Detroit but a US factory).
They did take a(if you believe the tear down websites) hit on new iPad margins. If true, interesting. Will that continue? Inevitable?

IMO, they should seed tech entrepreneurs... And use funds for innovative tech acquistion etc. Research lab partnerships at universities etc. Again in my humble opine... Apple is great at consumerization of tech, driving tech forward, but not the basic tech development itself.

Or

Buy ABC?
Buy yahoo?

Or???
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post #85 of 197
Quote:
Originally Posted by Tallest Skil View Post

They're buying three states in northern Mexico, annexing them to the US, and setting up solar-powered, fully-robotic factories so that Apple products can be made locally.

In addition, we'll be immediately replacing Tim Cook with our brand new Apple-brand artificial intelligence CEO, which we lovingly refer to as "iBrain". Thank you for your years of service, Tim... Security!

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post #86 of 197
Quote:
Originally Posted by AppleInsider View Post

Apple will host a conference call on Monday at 9 a.m. Eastern, 6 a.m. Pacific to discuss what it plans to do with its $100 billion cash balance.

The company issued a press release at 6 p.m. Eastern on Sunday evening to announce the conference call less than 24 hours in advance. The call will feature Apple Chief Executive Tim Cook and Chief Financial Officer Peter Oppenheimer.

On the call, the company "will announce the outcome of (its) discussions concerning its cash balance." The press release also said that Apple would not provide an update on its current quarter, nor would it discuss any topics other than cash.

Last quarter, Apple's cash hoard grew to nearly $100 billion, prompting a great deal of discussion among investors and analysts. Executives at Apple simply said that they were "actively discussing" what to do with the money.

Last month, at Apple's annual shareholder meeting, investors again questioned Cook about what Apple planned to do with its cash hoard, with some of them pushing for a cash dividend. But Cook wouldn't commit to any such plans and instead repeated his comments that Apple executives were thinking "very deeply" about what to do with its money.


The growth trajectory of Apple's cash hoard, via Asymco.


With its cash, Apple has continued to make strategic investments to bolster its supply chain and also enhance its current product offerings, as it did with the $50 million purchase of App Store search engine Chomp revealed last month.

AppleInsider will have full live coverage of Apple's conference call when it takes place on Monday morning.

[ View article on AppleInsider ]

I would love to see Apple buy a major interest in a cable or satellite company. Maybe it's not viable and it is outside their core competencies. However, it could hold Verizon and ATT&T in check; Google's busy laying fiber optic lines; and DirecTV seems to be sniffing around for a buyer.
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post #87 of 197
APPLE should start building factories to create their products in America as well as jobs. Seems farfetched but this would benefit Apple in the long run.
As for declaring a dividend & stock buyback.....Very likely as this would rocket Apples stock and create a buying frenzy.
post #88 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.

No buyback please! I'd like to see some evidence that it has ever helped a company's stock

We read about increasing equity. Bah! That's nothing. Look to Microsoft's stock, or HP, or any number of companies over the years. Stocks tend to go up slightly, then drop back again.

If they do anything, I'd rather a one time disbursement, or a dividend, or some combo. Otherwise, there's no guarantee that shareholders will actually see value from it.
post #89 of 197
Quote:
Originally Posted by KPOM View Post

Those are the only two realistic ways of reducing the cash/investment balance (only a quarter of it is actually cash and 2/3 of it is in long-term investments). For 2012, at least as far as American shareholders are concerned, a special dividend would be taxed at 15% (the same as a long term capital gain), so that is one way of doing it. A stock buyback doesn't make a whole lot of sense when the stock is trading at a record high, so I'm leaning toward a special dividend.

However, they might announce plans to change how they invest whatever amount they decide to keep (hence my speculation that they might announce the creation of a private equity-type fund).

Short and long term marketable securities. That's an important difference.
post #90 of 197
Quote:
Originally Posted by Aizmov View Post

Acquisition(s) is the only right answer.

I surely hope not.
post #91 of 197
Wow

Read all the posts.

Seems majority believe in a dividend and or a split over a buy back.

I support that but...am in Hollywood...work in the entertainment industry and for my money two acquisitions (not that they'd announce it tomorrow) make a whole lotta sense to some of us here.

1) Netflix - Why? Content deals. Apple needs to secure it's position in this arena IF it's gonna go balls out in the TV Content world. Strange that suddenly you can now pay for your sub's in itunes. Just sayin.

2) Sprint - Why? Wireless is the future. Again if you were Apple and going full on into the TV arena and your not getting cooperation from content providers who (some) happen to also control the content pipes into our homes then you'd make a run for a pipe provider giving you access into homes wirelessly. As we heard, Apple is at first base and getting ready to roll out a major boost to WIFI delivery...The only way I see Apple gaining cooperation with content providers and developers like my employer is by having direct access. Thoughts?
post #92 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.

And if Apple did have education pricing (don't they already have education pricing?) it would be for educational institutions, such as schools who want to buy in large numbers. In ages past, they made deals where if the college bookstore stocked Apple, a college ID got you a small discount.

Apple is not of the mind to put an iPad in the hands of every kid, unless those kids' parents are willing to foot the bill. Some will say that's the only legit stand for a public, profit-making company to take and others will say that Apple has become just like any other large selfish company, but it's a moot point because Apple is never going to be giving away anything.

Totally disagree! My daughter started using my Mac when she was 2 1/2 years old. By the time she was three, she was reading books. She was one of a very few who was reading well by kindergarten.

We bought her books such as Grandma and Me, plus D&K dictionary, and a number of other programs. She loved them! I think that kids should get on computers as soon as they can manipulate them. They are amazingly strong learners.

But you have to buy the right programs. Junk isn't the way to go.
post #93 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?

Generally, a dividend causes a rise in price, though that may not last. With the stock rising so rapidly, it would be difficult to seperate out a rise caused from a dividend, and where it would be going anyway.

But if they do announce a dividend, and the stock goes up 20 points, that's likely due to the dividend, though it did go up more than $16 one day last week.
post #94 of 197
Quote:
Originally Posted by SpamSandwich View Post

…Apple-brand artificial intelligence CEO…



STeVEN: Superior Tim-expunging Virtual Executive Nomographer

STeVEN: The products we're about to release need more 'Boom'.

Human exec: I think they have a fair bit of pizazz; they have a real Jobs-like quality to them already.

STeVEN: No, no. We need real 'Boom'. Rig the batteries to short after three full charge cycles. And add one more thing. What it is doesn't matter, just add one.

Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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post #95 of 197
I claim .001%.
An Apple man since 1977
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post #96 of 197
Quote:
Originally Posted by silverpraxis View Post

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.

Paying an additional 35% would be ridiculous. They have already paid taxes on this money.

Perhaps the government has agreed to split those taxes with the tech companies who are trying to get a break here. Even if these companies paid no taxes on the repatriated cash, it would benefit the economy. It's estimated that tech companies alone have almost $500 billion overseas. If that went into banks and investments here, it would make a big difference, while causing problems abroad.
post #97 of 197
I definitely don't think acquisition. Any deal so large as to have meaningful impact on their cash would have seen rumors for days or weeks.

Unless they were buying Foxconn, or parts of it, but that's not very likely.

I'd like Apple to set up a wholly-owned manufacturing subsidiary in China. It would handle a percentage (say 10%) of the volume, but the main intent would be to serve as a labor and environmental benchmark, to focus on new products and thus keep them from eyes of third parties more effectively, to grab the best Chinese manufacturing engineering and logistics talent (keeping it out of reach from competitors), and for marketing purposes to Chinese consumers. I don't expect this to happen either.

I see no point in a buyback while the stock is flying, and neither Cook nor Oppenheimer look like guys who like to pay top dollar for anything.

So I think the one-time large dividend ($20?) theory is the most plausible, with or without a split to go along with it. If all they were going to announce was an intent to ramp up acquisitions, they would not choose this kind of time or date.
post #98 of 197
Quote:
Originally Posted by SolipsismX View Post

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

What do you mean by distributed? They're given quarter by quarter, so if, for example, Apple were to be very generous and give $20 a share per year, we'd get $5 a quarter. I don't know if that answers your question, or if it has nothing to do with it.
post #99 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.

5:1 would be sweet ...
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post #100 of 197
Ha!! Tim announces that Apple is buying a well known Japanese TV manufacture.
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post #101 of 197
Quote:
Originally Posted by SpamSandwich View Post

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.

A stock buyback would be satisfying Wall Street. That would be their preference. I think it's a terrible idea, and always has been.
post #102 of 197
Quote:
Originally Posted by SolipsismX View Post

How about a bounty on Daisey's head.

I was think of buying FoxConn and putting him in charge.
post #103 of 197
Transferring this post from another thread;

Quote:
Originally Posted by melgross View Post

Well, I don't want to see a buyback, as that never does anything, and I don't want to see some massive purchase.

Cook already has said that they investigated a split, and that they didn't see an advantage to it. A would agree with that. Maybe when it gets to $1,000.

I don't want to see them in manufacturing, though investing in others plants is what they do. They paid for half of Samsung's plant in Texas where their SoC's are made.

But none of that would be enough to hold a conference. It has to be something substantial. By that, I don't mean they they have to do some major change to their usage. I mean that they have to make a substantial statement as to what they are going to do, no matter what it is—even if it is to announce that they are doing nothing after all. I don't think theat would be it though.

Possibly a one time payout, or a dividend, or some combo of the two.

I agree on the buyback -- just shuffling deck chairs...

A substantial split would open the stock to the smaller investor -- advantages and disadvantages...

We discussed before an OTPC (One [iPad] Tablet Per Child) offering -- they could set up and administer a matching fund... supplying iPads at cost (or below) and setting up infrastructure in underdeveloped countries. There could be some substantial tax benefits to this if structured correctly. And, as we discussed I really like the long term potential for Apple and for humanity.

They could open up the iTunes store to "hard goods" -- Amazon done right!... Nah!

They could become a massive MVNO (possible), investing in a cableco (not likely), buy content or broadcast rights -- I like this the more I think about it.

Or, LOL, they could (to paraphrase Michael Dell) "payoff the shareholders and take Apple private".
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post #104 of 197
Quote:
Originally Posted by jd_in_sb View Post

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

Except that AMD sucks. Really badly. And they no longer have their own chip production. That's putting them at an even worse disadvantage.
post #105 of 197
Quote:
Originally Posted by gijoeinla View Post

Wow

Read all the posts.

Seems majority believe in a dividend and or a split over a buy back.

I support that but...am in Hollywood...work in the entertainment industry and for my money two acquisitions (not that they'd announce it tomorrow) make a whole lotta sense to some of us here.

1) Netflix - Why? Content deals. Apple needs to secure it's position in this arena IF it's gonna go balls out in the TV Content world. Strange that suddenly you can now pay for your sub's in itunes. Just sayin.

2) Sprint - Why? Wireless is the future. Again if you were Apple and going full on into the TV arena and your not getting cooperation from content providers who (some) happen to also control the content pipes into our homes then you'd make a run for a pipe provider giving you access into homes wirelessly. As we heard, Apple is at first base and getting ready to roll out a major boost to WIFI delivery...The only way I see Apple gaining cooperation with content providers and developers like my employer is by having direct access. Thoughts?

Apple needs to make decisions that benefit the board and the shareholders. While some options may provide an immediate kick to the shareholders (dividend or one time disbursement), it may adversely affect the company over the long term. I'm in favor of Apple making long-term decisions, not just quarter-to-quarter decisions.

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post #106 of 197
Quote:
Originally Posted by gijoeinla View Post

Wow

Read all the posts.

Seems majority believe in a dividend and or a split over a buy back.

I support that but...am in Hollywood...work in the entertainment industry and for my money two acquisitions (not that they'd announce it tomorrow) make a whole lotta sense to some of us here.

1) Netflix - Why? Content deals. Apple needs to secure it's position in this arena IF it's gonna go balls out in the TV Content world. Strange that suddenly you can now pay for your sub's in itunes. Just sayin.

2) Sprint - Why? Wireless is the future. Again if you were Apple and going full on into the TV arena and your not getting cooperation from content providers who (some) happen to also control the content pipes into our homes then you'd make a run for a pipe provider giving you access into homes wirelessly. As we heard, Apple is at first base and getting ready to roll out a major boost to WIFI delivery...The only way I see Apple gaining cooperation with content providers and developers like my employer is by having direct access. Thoughts?

Netflix is way overpriced, and has a number of problems. Sprint isn't a good idea because it's always bad to go into competition with your customers . And, yes, the carriers are their customers too, as are we.
post #107 of 197
Quote:
Originally Posted by KPOM View Post

Not on the 9AM (Eastern) call, but I would not be surprised if later on in the day or Tuesday they issue a separate press release announcing weekend sales. Whatever they decided to do with cash will have a significant impact on their stock trading activity tomorrow, and so might speculation about iPad sales. I'm guessing the board met this weekend to approve whatever Tim Cook and Peter Oppenheimer will announce, though I find it a bid odd they decided to do it the same weekend the new iPad launched.

I just can't resist...

Apple is going to pay down the cost of Algore's carbon footprint
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post #108 of 197
Quote:
Originally Posted by Commodification View Post

Ha!! Tim announces that Apple is buying a well known Japanese TV manufacture.

Can't be Sony. They don't make Tv's anymore.
post #109 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.

Surely they fact is MS won't go up based on crap products not because of stock splits?
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post #110 of 197
Quote:
Originally Posted by melgross View Post

Can't be Sony. They don't make Tv's anymore.

Only one I think they would buy (if it ever made any sense) would be Sharp.
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post #111 of 197
Quote:
Originally Posted by Dick Applebaum View Post


Transferring this post from another thread;



I agree on the buyback -- just shuffling deck chairs...

A substantial split would open the stock to the smaller investor -- advantages and disadvantages...

We discussed before an OTPC (One [iPad] Tablet Per Child) offering -- they could set up and administer a matching fund... supplying iPads at cost (or below) and setting up infrastructure in underdeveloped countries. There could be some substantial tax benefits to this if structured correctly. And, as we discussed I really like the long term potential for Apple and for humanity.

They could open up the iTunes store to "hard goods" -- Amazon done right!... Nah!

They could become a massive MVNO (possible), investing in a cableco (not likely), buy content or broadcast rights -- I like this the more I think about it.

Or, LOL, they could (to paraphrase Michael Dell) "payoff the shareholders and take Apple private".

On Apple's site, they do say that this is about the cash, so I don't think it would be about anything else, unless they did have some numbers to give us.
post #112 of 197
Quote:
Originally Posted by aaarrrgggh View Post

Very interesting. They want to be able to have a dramatic impact on the market it would seem.

Problems I see with a huge dividend are the percentage of the money outside the US, and the major capital investments in their campus(es). They can do it from LT investment money, but that seems odd.

Don't really want the $100B to become $75B after paying taxes on offshore money to the US.

Maybe Tim just wants to ring the bell
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post #113 of 197
Quote:
Originally Posted by melgross View Post

What do you mean by distributed? They're given quarter by quarter, so if, for example, Apple were to be very generous and give $20 a share per year, we'd get $5 a quarter. I don't know if that answers your question, or if it has nothing to do with it.

Is your example the dollar value you think dividends would be distributed?

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post #114 of 197
Quote:
Originally Posted by SpamSandwich View Post

Apple needs to make decisions that benefit the board and the shareholders. While some options may provide an immediate kick to the shareholders (dividend or one time disbursement), it may adversely affect the company over the long term. I'm in favor of Apple making long-term decisions, not just quarter-to-quarter decisions.

It's been pointed out in a number of articles that Apple will generate at least $40 billion in cash during 2012, and possibly 50% more$60 billion. They could easily give a $20 a share dividend, and still accumulate a lot of cash. In 2013, unless something unusually adverse occurs, they will generate a good deal more cash than that, and so on.

I've been against dividends and cash disbursements for years concerning Apple. But when they reached $50 billion I began to think differently. Now, they've got to do something. There is no need for that amount of cash. Apple has NO long term debt to pay off, or medium term debt to pay off where cash would be a good backup in case of some severe economic turndown like the last one. But they don't need it for that.

So, what DO they need it for? Does it matter if they now have $105 billion (by the end of the quarter), or $85 billion? By the end of next quarter, they will have added another $10 billion anyway. The quarter after that, they will be back where they will be in a few weeks, maybe even more.

Seriously, cash is not a problem for them.
post #115 of 197
Quote:
Originally Posted by Tallest Skil View Post


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post #116 of 197
Quote:
Originally Posted by Dick Applebaum View Post

Maybe Tim just wants to ring the bell

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post #117 of 197
Quote:
Originally Posted by melgross View Post

Totally disagree! My daughter started using my Mac when she was 2 1/2 years old. By the time she was three, she was reading books. She was one of a very few who was reading well by kindergarten.

We bought her books such as Grandma and Me, plus D&K dictionary, and a number of other programs. She loved them! I think that kids should get on computers as soon as they can manipulate them. They are amazingly strong learners.

But you have to buy the right programs. Junk isn't the way to go.

Totally agree.
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post #118 of 197
Quote:
Originally Posted by Commodification View Post

Only one I think they would buy (if it ever made any sense) would be Sharp.

It's tough to buy Asian and European companies. The governments there aren't happy about that. It's even difficult to learn what these companies are comprised of in Asia. They are part of groups that are very opaque. Their accounting is different from ours, and the laws in most Asian countries allow companies to hide a lot of cash, and debt.

One example. A lot of Japanese and Korean companies own banks. Those banks then make loans to the companies that own them, as well as to companies involved in the groups in which they are part of. But, they also make loans to banks owned by other groups, and receive loans from them. They are all interconnected. It's difficult to pry them apart.

Samsung, as an example, has numerous divisions, and sister companies, all of which issue their own stock. Very confusing as they use different accounting rules.
post #119 of 197
Quote:
Originally Posted by SolipsismX View Post

Is your example the dollar value you think dividends would be distributed?

If they do give a dividend, I think it could be anywhere from a low of $5 per share, to $25. That's per year. Of course, no one knows what their thinking on this is.
post #120 of 197
Quote:
Originally Posted by gijoeinla View Post

Wow

Read all the posts.

Seems majority believe in a dividend and or a split over a buy back.

Not me. A dividend does not historically increase the share price of a growth stock. For example, look at the big Microsoft one-time dividend a year ago. The share price dropped by almost exactly the amount of the dividend.

And Microsoft's share price growth has been far lower than Apple's - and MS offers a dividend and Apple does not. There's no evidence that a dividend increases the share price of growth stocks - and people like Warren Buffet are staunchly opposed.

Quote:
Originally Posted by gijoeinla View Post

I support that but...am in Hollywood...work in the entertainment industry and for my money two acquisitions (not that they'd announce it tomorrow) make a whole lotta sense to some of us here.

1) Netflix - Why? Content deals. Apple needs to secure it's position in this arena IF it's gonna go balls out in the TV Content world. Strange that suddenly you can now pay for your sub's in itunes. Just sayin.

2) Sprint - Why? Wireless is the future. Again if you were Apple and going full on into the TV arena and your not getting cooperation from content providers who (some) happen to also control the content pipes into our homes then you'd make a run for a pipe provider giving you access into homes wirelessly. As we heard, Apple is at first base and getting ready to roll out a major boost to WIFI delivery...The only way I see Apple gaining cooperation with content providers and developers like my employer is by having direct access. Thoughts?

Both terrible examples. In both cases, Apple's success depends on having access to all content and carriers. Choosing only one puts them in competition with key partners.

Quote:
Originally Posted by melgross View Post

Generally, a dividend causes a rise in price, though that may not last.

That's not at all true. A large one-time dividend causes a drop in share price roughly equal to the value of the dividend. If it's an ongoing dividend, there's no evidence that dividends are correlated with share price. Some of the fastest growing stocks (Berkshire Hathaway and AAPL, for example) do NOT pay dividends.

But feel free to provide evidence to support the claim that a dividend generally increases share price.

Quote:
Originally Posted by melgross View Post

Paying an additional 35% would be ridiculous. They have already paid taxes on this money.

Not quite true.

They pay taxes in local currency on money earned in other countries. If they repatriate the money, they pay taxes based on US tax rates - BUT they get to deduct the amount paid on foreign countries. So, in effect, if they want the money back in the U.S., the total tax rate they pay will be US tax rates, so there's no double taxation.

Quote:
Originally Posted by Dick Applebaum View Post

I agree on the buyback -- just shuffling deck chairs...

A substantial split would open the stock to the smaller investor -- advantages and disadvantages...

Actually, you have it backwards.

A split is shuffling deck chairs. It has absolutely no impact on the ratios or the split-adjusted share price. Evidence is pretty clear that while a split might have a very short term benefit, that goes away quickly.

OTOH, a buy-back has a very real effect. There are 930 M shares in circulation right now. The per-share earnings are $X divided by 930 M. If Apple buys back 30 M shares, then the per-share earnings are $X divided by only 900 M, so earnings per share are increased - permanently.

Whatever multiple the investor uses will be based on the new share price, so the price would increase proportionally. That is, if they buy back 5% of the shares, the share price will increase approximately 5%.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
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