A year after Apple announced its dividend, 'timing could be right' for another cash deployment

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Comments

  • Reply 41 of 47
    hftshfts Posts: 386member


    Hoarding cash just for the sake is pointless.


    I wish Apple would fix the virtual keyboard on the iPhone.


    I upgraded to iPhone 5 with the latest iOS, and there definitley is a problem.


    My typing actions have not changed, hence it must be the fault of the software or hardware, please do not attempt to tell me otherwise.


    With all that money surely they could give us a better typing experience.

  • Reply 42 of 47
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by hfts View Post

    I wish Apple would fix the virtual keyboard on the iPhone.


     


    There's nothing wrong with it.





    I upgraded to iPhone 5 with the latest iOS, and there definitley is a problem.



     


    So it's a brand new phone that doesn't know your mistakes yet.

  • Reply 43 of 47
    tjrsvtjrsv Posts: 35member
    D
    In what respect?

    In what respect?


    The deal is you trust Apple, they give you money. Simple.

    Right, because the company known for keeping everything secret NOT telling you their most intimate plans is "unusual".

    Dear Tallest Skil,

    You make good counter arguements...if there were any. I am on Cook's side and AAPLs in general, but the small/retail investor gets killed in the AAPL game, unless your are a real player and owned shares outright between $5-$90.

    But for the new type of AAPL investor from here on out, are you trying to tell me to believe in AAPL and put up $400+/share for an $8+ return per year when the value that initial valuation could easily drop from $400 to $300 or below? That is hardly worth the risk for a measily 2% dividend with a company whose superstar is permanently absent and a CEO who just smiles and says how intensely interested they are in certain areas.

    AAPL is the best company, period...but right now they suck!!! Trying to time it will cost you at least $30k per expiration date, and investing purely on the way down is idiotic as well. Sell them short and the next day they will announce a 4 for 1 split, same dividend, and a major buy back.

    Good luck making $$$ on APPL unles you bought it in 1995 or March 2009.

    Cheers.
  • Reply 44 of 47
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by TJRSV View Post

    But for the new type of AAPL investor from here on out, are you trying to tell me to believe in AAPL and put up $400+/share for an $8+ return per year when the value that initial valuation could easily drop from $400 to $300 or below? That is hardly worth the risk for a measily 2% dividend with a company whose superstar is permanently absent and a CEO who just smiles and says how intensely interested they are in certain areas.


     


    I would think the idea would be to sell shares as they rise, not stick around hoping for dividends. Last year they rose $200 per share, not $8. You could make a tidy profit selling off some of that.


     


    Dick Applebaum does it on occasion, I believe. He bought at opportune low points and sold when he felt it was a local high. Anyone who bought in 2003 would be quite happy selling now, much less when it was at 700. And now is a pretty good buying time otherwise, considering all projections are up.

  • Reply 45 of 47
    ankleskaterankleskater Posts: 1,287member
    jdnc123 wrote: »
    IBM's earnings per share are growing faster than its revenue and nominal amount of net income.  If the market uses a multiple of EPS to value the stock and the p/e is higher for higher growing EPS, isn't that a good thing?  Maybe it is too simple and ridiculous but the difference with IBM is the market believes they have recurring revenue while Apple does not.  IBM trades at a 12.5 p/e vs sub 10 for Apple and when you back out the cash the difference is even more dramatic.  IBM nominal net income has grown somewhere around 5%/year for the last few, but EPS growing much faster due to the buyback.  

    Now if the simple fact is Apple EPS is going to flatline or drop like a rock from here even with buybacks, then yes, its not going to matter much if they buy the stock.  IBM and HP are focused on markets in secular declines.  Apple is focused on markets that are in growth mode still and are the markets that are actually hurting INTC and HP.  Why then does Apple trade at valuation discounts to both those companies?  I guess that is my point.  Either the market is wrong and now is a good time to buy the stock with cash or things are about to get real bad in Cupertino.  If Apple profits are shrinking materially from here as the market is pricing in with such low multiples while they are still in the early stages of smartphone/tablet/etc. growth, then this is truly a Apple-specific problem.  Google is focused on mobile and is growing.  The vast majority of Samsung's earnings growth is from mobile and they are growing.  If Apple can't grow in an environment where its competitors are, then the strategy gets called into question and that is what we are seeing and why people want to hear Cook articulate a plan to grow earnings.  Since Tim took over, the combined value of Apple/Goog/Samsung has increased materially.  Apple's value has shrunk.  That is the reality, not rumor or conjecture.  The value pie in mobile is bigger than ever, but Apple is no longer participating.  It is a fair question to ask why.

    Apple is participating just fine, far better than any company. It's Apple shareholders who feel that they're not participating. Even that's only true when 8 month optics is applied. The opinions herein are all about what people have lost in last 8 months and want to rrgain in next few months, and nothing about what's good for Apple.

    Btw, IBM's eps is indeed higher because of buyback. But to call it much higher would be pure hot air.
  • Reply 46 of 47
    jdnc123jdnc123 Posts: 233member

    Quote:

    Originally Posted by ankleskater View Post





    Apple is participating just fine, far better than any company. It's Apple shareholders who feel that they're not participating. Even that's only true when 8 month optics is applied. The opinions herein are all about what people have lost in last 8 months and want to rrgain in next few months, and nothing about what's good for Apple.



    Btw, IBM's eps is indeed higher because of buyback. But to call it much higher would be pure hot air.


     


     


    Maybe a bottom is near because you have Apple being compared to Motorola, Blackberry and HTC today by the analyst at Jefferies who basically says Apple is toast and will follow the path of those companies.  Says Samsung is killing Apple and sees no answers, any answer appears too late, mindset will have shifted to thinking Apple is 2nd tier provider by the time they release new devices to compete.


     


    That is the current bearish mentality on this company.  Management has shown they have nothing to change the sentiment.  Listen, reality is you really don't know the true character of a man until he is challenged.  Lots of people can handle being front runners, but until Tim Cook actually innovates and executes and re-takes the lead from Samsung, its very easy to argue he's the type that isn't able to lead as a challenger, isn't able to lead from behind.

  • Reply 47 of 47
    ankleskaterankleskater Posts: 1,287member

    Quote:

    Originally Posted by jdnc123 View Post


     


     


    Maybe a bottom is near because you have Apple being compared to Motorola, Blackberry and HTC today by the analyst at Jefferies who basically says Apple is toast and will follow the path of those companies.  Says Samsung is killing Apple and sees no answers, any answer appears too late, mindset will have shifted to thinking Apple is 2nd tier provider by the time they release new devices to compete.


     


    That is the current bearish mentality on this company.  Management has shown they have nothing to change the sentiment.  Listen, reality is you really don't know the true character of a man until he is challenged.  Lots of people can handle being front runners, but until Tim Cook actually innovates and executes and re-takes the lead from Samsung, its very easy to argue he's the type that isn't able to lead as a challenger, isn't able to lead from behind.





    There are good, valid reasons for stock buybacks (which, obviously, I don't agree with) and dividends (which I object less to), but your reasons here are not amongst them. In fact, your reasons right here are total rubbish.

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