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.
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.
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?
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.
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.
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.
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.
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.
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.
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.
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.
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.
Comments
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.
I mean come on, if they are going to declare a dividend ... What could it cost?
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.
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.
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.
Intel can suck it!
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.
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.
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.
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.
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%.
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.
I'm hoping for no dividend, no buy back, and no split.
Ehh...what do you think they're going to do then?
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.
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.
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.