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gatorguy said:

Xed said:

gatorguy said:

Xed said:

gatorguy said:

Xed said:

gatorguy said:

IMO actually distributing it to the stockholders in a special dividend would be more direct, assurance of truly getting something tangible instead of simply having faith it made your investment more valuable, but I guess they don't want to get hopes up of an ongoing thing. 

Buying back the stock is a clear indicator that Apple thinks the stock price is low and/or that they expect something to move the stock higher in the future to make the buyback a lucrative endeavor.

How would it be a "lucrative endeavor"? That would imply Apple could profit from a higher price later, which they won't. 

1. No one understands the health of the company better than its senior managers. No one is in a better position to judge what will happen to the future performance of the company. So if a company decides to buy back stock (i.e., decides to invest in its own stock), these managers must believe that the stock price is undervalued and will rise (or so most observers would believe).

Apple is not investing in its own stock tho. There is no retained value, the stock gets burned in effect. 

As far as these repurchases driving up the value of the remaining stock I perfectly understand the theory. The proof is lacking, therefore it's somewhat a leap of faith that you will benefit more from an increased share price later on directly due to a buyback this quarter compared to an identifiable and tangible check distributing those funds directly to you.

Sure they are. Retiring outstanding shares increases the value per share and increases EPS. Although, they never retire all the shares since they use some of these shares to issue to employees.

I think you're incorrect. To the best of my knowledge not a single repurchased share is retained for redistribution. Not one. They no longer exist, so using my "burned" analogy is apt. POOF! If you're going to find fault with my opinion you should first make sure your own understanding is correct. 

As far as the repurchase program not having significant value I'm certainly not saying that. At the same time there is no proof that it has, even if "in theory" it should all things being equal, so neither you nor I can be absolutely certain of the dollar value. With a check in hand you would have your proof. 

EDIT: Personally I get the impression the stock repurchase deals are intended to benefit the largest investors, increasing their voting power. Small guys are in it at the whim and fancy of the big market investment forces far beyond anything you have any control over. You have no voice in it.

There is often no rational reason for certain stock moves. If/when things crash and burn the largest investors will get along just fine IMO.