"Supply chain control reguires cash and guts."
Does it require cash & guts to the tune of $150 billion sitting in the bank? Apple can pay for their capital expenditures with the cash flow they earn every quarter.
flabingo wrote: »
The most valuable franchise in the NFL is $2.3 BILLION
The average is half
The owner built the stadium in a location without any MASS transportation
He charges$75.00 to park
Can you imagine the current BOD or TIm Cook making that kind of decision?
We miss you Steve Jobs, the last entrepreneur at Apple
Put Jerry Jones on the board
flabingo wrote: »
Read about the stadium and the other uses including Paul McCathy . Why is the franchise so valuable given the performance of the team?
Can you imagine Apple management thinking outside the box?
Winning football games is apparently not that important to the value of his franchise
flabingo wrote: »
Does it bother anybody that the Chairman of the Board of directors is the CEO of a company that GOOLE recently purchased?
@sog35 I agree with sog35 - his reasoning is logical and sound, and I'll be voting to support increasing the buyback. I don't have all that many shares, though, but I agree that it creates value, especially with interest rates below the dividend yield. Just:
1) borrow the money
2) buyback and retire the shares
3) don't pay dividends on the retired shares
4) use the saved dividend money to pay the interest on the bond. And step 5) will be instant profit. (The instant profit will be the difference between the bond yield and the dividend yield)
Pro tip: don't forget to take the interest paid tax deductions for extra profit
It's non-binding, so don't expect too much out of it either if it passes or fails. I think whichever happens, Apple wouldn't do exactly what the resolution says, but that's no big deal. The original plan was to change nothing anyway. But I do think that a bigger step towards that direction will actually create wealth for all shareholders, both short term and long term. Buybacks lowers PE (a good thing) and gets rid of excess cash (that otherwise cannot be reinvested in the core business or something equivalent performing like what Warren Buffett does)
Or Apple could just buy more patent portfolios and lay the smack down on Google I guess.
Trust the Board? Same wonderful Board that fired Steve Jobs?
I think Icahn is a finance guy and sees Apple strictly as a corporation - an instrument for giving investors as good a return as possible on their investment. In that narrow sense he may be right about what to do with the money. But the people who work there (including the CEO) see it more as an instrument of positive change in the world (primarily technological but social too), in which case a big pile of money can come in very handy.
(Photo taken in the weeks before Carl Icahn's bar mitzvah.)
So that guy is indeed jewish?
Its a good thing.
A decrease in share count means each share represents a larger percentage of the company. For example if there were 100 shares available and you owned 10 shares you would own 10% of the company. If a buyback purchases 50 shares then you would own 20% of the company. You would have 20% stake in all of Apple's assets. As far as stock price it should go up also since Earnings PER SHARE will go up since there are less shares outstanding.
There are also very good reasons to start a $50B buyback this fiscal year:
1. Interest rates are near all time lows. We won't be able to say that in a year or two.
2. Apple's stock price is severely under-valued
3. Apple pays a 2% dividend
4. Apple has over $150B in cash and generates $50B free cash flows a year
5. The $150B cash is generating 1% returns
Unless Apple is planning on making acquisitions of over $150B in the next 12 months I see no reason for them to continue to hoard the cash. Even if they payout $50B in buybacks they still will have $150B at the end of 2014. Floating a bond at today's interest rates would cost Apple basically ZERO. They would not have to pay the 2% dividend and would be able to write off the interest expense.
I hold 300 shares of Apple stock and I will vote yes to the buyback
The only way the Buyback is a bad idea is if LONG-TERM you think the stock will be worth less than $560. If that's the case you should just sell your shares and invest in something else.
Agreed. There is very little downside to a larger buyback if you think Apple is worth more then $560. If you think it is worth less you should sell or short AAPL.
I own AAPL shares and would also like to see the 50B in 2014 buyback. Just the savings on the dividend makes it worth it, with the less shares being outstanding a (huge) bonus. The buyback is the best way to deal with a Wall Street that does not properly value AAPL.