Apple predicted to announce plans for growing cash pile by April, will add $42B over 2013
Speculation abounds as to what Apple will do with its $137 billion cash pile, but one investment officer believes Cupertino will put the rumors to rest by announcing its plans for the massive cash hoard by next month.
Bloomberg reported on Monday that Howard Ward, chief investment officer at Gamco Investors, predicted an announcement from Apple in an interview on Bloomberg Radio's "Surveillance." Ward believes that Apple will announce a reallocation of at least some of that cash in order to "put a floor under their stock at a higher price than it is today."
Ward seemed confident in the future of Apple stock, comparing it to JPMorgan, which saw its price plummet last year after a multibillion-dollar loss.
"The stock was beaten up and it was at $30 a share," he said, "and now it's $50."
Ward also believes that Apple will continue to grow its cash and investment pile over the course of 2013. The Gamco officer predicted $42 billion would be added to Apple's current $137.1 billion cash and equivalents over the course of the year.
Apple is Gamco's fund's largest holding, according to Ward.
What exactly Apple should do with its considerable cash holdings has been the topic of much discussion as the pile gets bigger. Last month saw a small revolt on the part of one investor, who believed Apple should issue preferred stock, though that has since died down. A good portion of the assets sits overseas, prompting calls from assorted governments for the repatriation of Apple's stashed earnings so that it can be taxed.
Bloomberg reported on Monday that Howard Ward, chief investment officer at Gamco Investors, predicted an announcement from Apple in an interview on Bloomberg Radio's "Surveillance." Ward believes that Apple will announce a reallocation of at least some of that cash in order to "put a floor under their stock at a higher price than it is today."
Ward seemed confident in the future of Apple stock, comparing it to JPMorgan, which saw its price plummet last year after a multibillion-dollar loss.
"The stock was beaten up and it was at $30 a share," he said, "and now it's $50."
Ward also believes that Apple will continue to grow its cash and investment pile over the course of 2013. The Gamco officer predicted $42 billion would be added to Apple's current $137.1 billion cash and equivalents over the course of the year.
Apple is Gamco's fund's largest holding, according to Ward.
What exactly Apple should do with its considerable cash holdings has been the topic of much discussion as the pile gets bigger. Last month saw a small revolt on the part of one investor, who believed Apple should issue preferred stock, though that has since died down. A good portion of the assets sits overseas, prompting calls from assorted governments for the repatriation of Apple's stashed earnings so that it can be taxed.
Comments
No wonder Apple is doomed...
They should use the money to buy gold.
But according to analysts, Apple desperately needs to burn through the cash it has on hand just to stay alive, right? Based on this, there's no way Apple will be ADDING to it's cash pile this year.. I'm so confused. /s
Quote:
Originally Posted by majjo
If they return a good portion to shareholders, I'll probably buy in again
That would be a terrible way of wasting hard-earned money.
Just buy out Wolfram Alpha, Yelp, Sharp, and TSMC to secure future operations.
Also ask IBM to let Watson technology to get added to Siri stack.
Yeah, and kill f@cking Google.
1.7%!!! Dollars kept for strategic purposes only seem like a brilliant idea when they get used. What will everyone say when Apple buys Corning (makers of Gorilla Glass), for example, which has a market of $18.5 billion and would probably cost at least $30 billion. I think Cook et. al. actually do know what they're doing.
I think the offices of Braeburn Capital only moved; they're still investing that cash pile not sticking it under the bed ... though what a big bed that would be.
Give them an inch and they'll take a foot and before you know it you won't have a leg to stand on.
Originally Posted by jason98
Yeah, and kill f@cking Google.
I wonder…
I wonder if a Google purchase could legally go through IF Apple was forced to release Motorola as its own company AND hand Android over to Motorola, completely sight unseen.
Think about it: Apple would be completely destroying their competitor while absorbing everything that made it marginally decent… and Motorola couldn't possibly manage Android effectively, so Android would be dead, Motorola would be dead, and everyone else using Android would have to scramble to buy Android away from them.
Actually someone bought me one share years ago as a gift. I think it's split a couple times since then, though I don't know how to track that. But anyway, I'm reminded of the story whereby if you had bought one share in Microsoft in the 70's you'd be a billionaire today.
Well let's see how that works in reality - bought when it was less than $20 a share, and it's now worth $440. Throw in a couple splits and let's round up to $1500. So I'm now a $1500-aire.
They need to amend that Microsoft story to be 'if you had bought tens of thousands of shares in Microsoft in the 70's....' :rolleyes:
And in doing so, they have become Microsoft.
The inflation numbers are so doctored it's insane. Just like the unemployment numbers. Don't believe the Obumma hype machine.
Right?¡ If only we could go back to the time right before Bush left office when everything was so great¡
Originally Posted by majjo
And in doing so, they have become Microsoft.
I don't think that works. You can't say "I am become Microsoft, destroyer of evil." and have it make sense.