Wow, um, yes they would, if Apple decides to go private and these companies are forced to when the stock actually gets delisted. Did you not read the bullet points in my post? They would have no choice. If a company wants to go private and has enough money to pay the investors, it sure as hell can do this. It's a free country!!
You really don't understand any of this. It doesn't buy back debt from investors. Other investors effectively buy them out, and they have to control something like >80% of shares just to force the remaining ones to sell (can't recall it's 80 or 90%). That you use the term "free country" makes me think you may be trolling.
Quote:
Originally Posted by RonMG
OK, I'm done here. No use arguing back and forth. My prediction is that Apple will continue to buy back significant shares annually for the next 10 years and will eventually go private by 2030. Hopefully you and I will be here at that time so I can tell you I told you so. Or you will tell me that you told me so. I never said they would need a $600 Billion loan. They bring in tens of billions of dollars annually free and clear, and will have a stock buy-back program every year. At some point, if they continue to perform, and bring new products, and the stock remains undervalued, and they make money hand over fist, they will have more money than they need - so, either give back in form of dividend, or continue to reduce outstanding shares. Of course, there is that pesky 'can't bring money back to US without paying taxes' issue that would have to be resolved in some form or another. Apple currently has nearly $70 Billion in Cash/Receivables/ST investments/inventory, and $130 Billion in LT investments. That's $200 Billion right there. If Wall Street continues to undervalue the company, stock buy backs make perfect sense, to the point of eliminating the stock altogether. You can reference Dell all you want, but just realize that Apple is in a very unique position, one that rarely happens to a company that large.
There's nothing to argue. You just misinterpreted how buybacks work. When the company buys back shares, they cannot vote them. Imagine they buy up all but 10 shares, and those 10 shares are owned by one institution. That institution now effectively owns Apple. They don't own themselves. You are thinking of bonds here, where they would in fact be selling debt. That is not the case here. Even if they found investors with enough money to take Apple private, Apple would still be controlled by those interests.
Comments
Wow, um, yes they would, if Apple decides to go private and these companies are forced to when the stock actually gets delisted. Did you not read the bullet points in my post? They would have no choice. If a company wants to go private and has enough money to pay the investors, it sure as hell can do this. It's a free country!!
You really don't understand any of this. It doesn't buy back debt from investors. Other investors effectively buy them out, and they have to control something like >80% of shares just to force the remaining ones to sell (can't recall it's 80 or 90%). That you use the term "free country" makes me think you may be trolling.
OK, I'm done here. No use arguing back and forth. My prediction is that Apple will continue to buy back significant shares annually for the next 10 years and will eventually go private by 2030. Hopefully you and I will be here at that time so I can tell you I told you so. Or you will tell me that you told me so. I never said they would need a $600 Billion loan. They bring in tens of billions of dollars annually free and clear, and will have a stock buy-back program every year. At some point, if they continue to perform, and bring new products, and the stock remains undervalued, and they make money hand over fist, they will have more money than they need - so, either give back in form of dividend, or continue to reduce outstanding shares. Of course, there is that pesky 'can't bring money back to US without paying taxes' issue that would have to be resolved in some form or another. Apple currently has nearly $70 Billion in Cash/Receivables/ST investments/inventory, and $130 Billion in LT investments. That's $200 Billion right there. If Wall Street continues to undervalue the company, stock buy backs make perfect sense, to the point of eliminating the stock altogether. You can reference Dell all you want, but just realize that Apple is in a very unique position, one that rarely happens to a company that large.
There's nothing to argue. You just misinterpreted how buybacks work. When the company buys back shares, they cannot vote them. Imagine they buy up all but 10 shares, and those 10 shares are owned by one institution. That institution now effectively owns Apple. They don't own themselves. You are thinking of bonds here, where they would in fact be selling debt. That is not the case here. Even if they found investors with enough money to take Apple private, Apple would still be controlled by those interests.