Morgan Stanley recommends Apple use cash for share buybacks, dividends

13567

Comments

  • Reply 41 of 126
    Aside from litle evidence dividend or share buy back improves stock price in general and the very real tax liabilities this is not self evident in stockholdeers interest. In fact, if stock value is important, best way to improve stock value is not sales or growth, but accumulating cash, ironic!
  • Reply 42 of 126
    Quote:
    Originally Posted by scotty321 View Post


    This is the Morgan Stanley that went bankrupt and was sold to Bank of America to remain solvent?



    Yeah, maybe they should keep their mouths shut when it comes to what companies need to do with their profitable cash stockpiles.



    Particularly a company whose future plans they are not privy to so how the hell do the know how much cash is needed
  • Reply 43 of 126
    Why do these people get paid? Zero imagination. Zero understanding.
  • Reply 44 of 126
    Other than my bank tellers, I don't want to hear analytic crap from bankers.
  • Reply 45 of 126
    Quote:
    Originally Posted by cameronj View Post


    Just curious, because you CLEARLY have taken MBA finance classes. What year did you take them, and from what institution? Mine (undergrad) were at Princeton in 1998-2001.



    I got my MBA from Stanford and I say you're a frickin idiot.
  • Reply 46 of 126
    Quote:
    Originally Posted by msm859 View Post


    How about they build a manufacturing plant here in the United States and create some jobs. I suspect they will still make more than enough profit even if the costs are higher. American people need to start demanding that American companies think about America.



    If they ever build a manufacturing plant in the US it will be a fully automated one that would use hardly any employees.



    Don?t put your hopes on Apple to make a dent in the high unemployment figures. It is just not Apple?s way, having been burned in the past with just such a plant.
  • Reply 47 of 126
    Quote:
    Originally Posted by nvidia2008 View Post


    You do realise the current GUARANTEED returns Apple gets by "sitting" on that cash hoard, don't you? The INTEREST alone from the cash hoard is enough to finance... A heck of a lot of things.



    Apple is Thinking Different, even financially. Rather than finance themselves through ever more surmounting debt, they're financing themselves essentially through interest of "sitting" on that cash hoard. Why eat the cost of 5% interest on loans when you can actually GET 5% bonus interest on your own cash. Apple is essentially its own private bank now.



    Even if nobody bought any Apple products for a year, Apple would still be in a better financial situation and still less prone to takeover than most large companies.



    Collectively we must rethink debt and recognise its crippling nature.



    +100! Great post nvidea!



    I don't think (IMHO) that there is a more reviled profession on Earth, that has been more wrong than right consistently, and should no longer receive ANY news coverage regarding finance... than ANAL-Cysts!



    Is there even 1... just one... that has even come close predicting anything relating to Apple over the last 10 years? They can't even point to, or even fathom, how Apple has out-managed every single other business on the planet with it's products, and it's financial foresight and acumen.



    And they have the chutzpah to offer "advice"? Wow. Just WOW!
  • Reply 48 of 126
    Wait til the end of 2012 when Apple has $138 billion then drop $90 billion on 51% of Google and kill Android. They would still have ~$50 billion in playing around money.



    But that isn't going to happen.



    There are several companies they should be looking into.



    TiVo

    Netflix

    Hulu

    Nvidia

    AMD/Ati

    Sprint
  • Reply 49 of 126
    Quote:
    Originally Posted by Charel View Post


    If they ever build a manufacturing plant in the US it will be a fully automated one that would use hardly any employees.



    Don?t put your hopes on Apple to make a dent in the high unemployment figures. It is just not Apple?s way, having been burned in the past with just such a plant.



    Apple's putting a dent into the high unemployment by growing from 5,000 in 1998 to nearly 47,000 in 2011.
  • Reply 50 of 126
    Quote:
    Originally Posted by msm859 View Post


    How about they build a manufacturing plant here in the United States and create some jobs. I suspect they will still make more than enough profit even if the costs are higher. American people need to start demanding that American companies think about America.





    Because then iPads would start at $1,399 and no one would buy them?

  • Reply 51 of 126
    I guess Morgan Stanley needs money, again. Why don't they purchase a few patents and sue Apple?
  • Reply 52 of 126
    Quote:
    Originally Posted by cameronj View Post


    Jesus. I assume that you're an Apple shareholder. You realize that Apple is holding money that belongs to you, right?



    If you don't like it, them sell your Apple shares and reinvest your money in a company that's more to your liking. Perhaps Dell or Microsoft...
  • Reply 53 of 126
    so basically they have said that Apple should



    1.buy another company

    2.pay dividend

    3.buyback shares!

    4.use the money to prepurchase components



    Which is all you can do with it (apart from increasing wages or building a new headquarters or more R&D which are partly mentioned in the report!!!!!)



    Am I missing something here or MS just stated the obvious?







    On a more serious note, I just bought an iPad and very happy about it!
  • Reply 54 of 126
    Quote:
    Originally Posted by John.B View Post


    Just for fun, go to your favorite stock quote website and graph the MS share price for the past five years against AAPL.



    I presume it looks like a big X
  • Reply 55 of 126
    Quote:
    Originally Posted by mytdave View Post


    Dividends would be a good idea. It would actually make the stock more attractive. Not too much though. Apple is wise to keep lots of cash on hand. There will be more lawsuits on the way, and they'll need to pay for defense. I also think there is a financial firestorm coming, and any company without a treasure chest (relative to their size) won't survive. \







    Apple is already the most valuable technology company on earth. That proves that Steve Jobs was right in saying that by making and selling great products, the stock takes care of itself. Why do they have to do more? I really hope Tim Cook never changes that.



    Dividends and buybacks are gimmicks, needed when a company isn't growing. Why do they need gimmicks?
  • Reply 56 of 126
    Quote:
    Originally Posted by cameronj View Post


    Jesus. I assume that you're an Apple shareholder. You realize that Apple is holding money that belongs to you, right?



    Why do people keep insisting that a company's cash belongs to the shareholders? That is incorrect legally, technically and really. Not a single penny belongs to the shareholders unless the SHA says otherwise. And I assure you the SHA does not say so.
  • Reply 57 of 126
    MacProMacPro Posts: 19,471member
    Quote:
    Originally Posted by scotty321 View Post


    This is the Morgan Stanley that went bankrupt and was sold to Bank of America to remain solvent?



    Yeah, maybe they should keep their mouths shut when it comes to what companies need to do with their profitable cash stockpiles.



    Such experts eh?
  • Reply 58 of 126
    MacProMacPro Posts: 19,471member
    Quote:
    Originally Posted by solipsism View Post


    Apple needs to rent out stadiums around the country for all their shareholders, setup them up as giant roller-rinks, and then throw us the bestest pizza party EVER!



    I'd settle for a new MBP every three years, top of the line of course
  • Reply 59 of 126
    Quote:
    Originally Posted by msm859 View Post


    How about they build a manufacturing plant here in the United States and create some jobs. I suspect they will still make more than enough profit even if the costs are higher. American people need to start demanding that American companies think about America.



    I hate to say it but....

    America is not a manufacturing country anymore and I don't think it is coming back.

    We are the innovators and engineers of products now. Not the builders.

    The sooner people realize this the sooner this country can move on to a new path for prosperity. Instead of wishing and waiting for manufacturing jobs to come back, we need to retrain ourselves to compete where we can compete with the world. I see and deal with overseas manufacturing on a daily basis. If it's not going to China, it's going to Vietnam. If not there, Indonesia, India, Philippines, Mexico, Columbia, etc, etc, etc. But the jobs that remain here are the innovative ones.



    Just my two cents from what I'm seeing in the field.
  • Reply 60 of 126
    Quote:
    Originally Posted by scotty321 View Post


    This is the Morgan Stanley that went bankrupt and was sold to Bank of America to remain solvent?



    Yeah, maybe they should keep their mouths shut when it comes to what companies need to do with their profitable cash stockpiles.



    No, that was Merrill Lynch... MS is still a pretty important player on the street



    Maybe you should keep your mouth shut when it comes to understanding the financial industry and what might be in the best interest of shareholders... their points are quite valid
Sign In or Register to comment.