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Apple Issues Statement About Returning Cash to Shareholders

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macrumors bot
Original poster
Apr 12, 2001
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Apple has issued a press release reiterating its commitment to return some of its extremely large cash pile to shareholders, saying that Apple management and the Board of Directors are in "active discussions" about how to return cash to shareholders.

This follows letter sent to Apple shareholders this morning by Greenlight Capital [PDF], a major Apple shareholder, arguing that the company "must examine all of its options to unlock the growing value of its balance sheet".

Apple's statement:
By early last year, Apple's cash balance had built to a point beyond what we needed to run our business and maintain flexibility to take advantage of strategic opportunities, so we announced a plan to return $45 billion to shareholders over three years. As of next week we will have executed $10 billion of that plan.

We find ourselves in the fortunate position of continuing to generate large amounts of cash, including $23 billion in cash flow from operations in the last quarter alone.

Apple's management team and Board of Directors have been in active discussions about returning additional cash to shareholders. As part of our review, we will thoroughly evaluate Greenlight Capital's current proposal to issue some form of preferred stock. We welcome Greenlight's views and the views of all of our shareholders.
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Apple's stock price rose sharply in the minutes following the release.

Article Link: Apple Issues Statement About Returning Cash to Shareholders
 
Article Link
https://www.macrumors.com/2013/02/07/apple-issues-statement-about-returning-cash-to-shareholders/
macnerd93

macnerd93

macrumors 6502a
Nov 28, 2009
712
190
United Kingdom
The timing is perfect. They are giving the money back because they have "Too" much money in cash reserves. Meanwhile, Dell is going private.

Michael Dell - "What would I do? I'd shut it down and give the money back to the shareholders"

Backfire :)
 
O

ogee

macrumors 6502
Nov 8, 2006
417
0
Earth.
How about giving the staff, including retail, a bonus. We never get bonuses, and in my store all we were got for christmas was a small bag of peanuts!
 
Yvan256

Yvan256

macrumors 603
Jul 5, 2004
5,081
998
Canada
Anything that can shield Apple from the crazy mood of the stock market is a good thing. Their value keeps going up and down because of a few insane people who keep writing stupid rumors and predicting out-of-this-world profits based on wishful thinking.
 
V

Val-kyrie

macrumors 68020
Feb 13, 2005
2,107
1,419
Following in the footsteps of Dell....

I wonder if Apple is also trying to distance itself from the perceived risk of increasing volatility in stock prices?
 
E

Evangelion

macrumors 68040
Jan 10, 2005
3,374
147
Is it really "giving money back to shareholders", since that money didn't come from the shareholders, but from the people who bought their products? When investor buys a share in a company, the money does not go to the company in question, but to the investor he bought the share from. Unless he took part in the IPO that is.
 
S

smoledman

macrumors 68000
Oct 17, 2011
1,943
364
Yvan256 said:
Anything that can shield Apple from the crazy mood of the stock market is a good thing. Their value keeps going up and down because of a few insane people who keep writing stupid rumors and predicting out-of-this-world profits based on wishful thinking.
Click to expand...

Explain to me why you care.
 
TEG

TEG

macrumors 604
Jan 21, 2002
6,621
168
Langley, Washington
They could indirectly give the money back to the shareholders by buying back stock. Less available stock usually raises the price, giving people value, at least on paper.

TEG
 
Squilly

Squilly

macrumors 68020
Nov 17, 2012
2,260
4
PA
I didn't see that coming....
On another note...
"We find ourselves in the fortunate position of continuing to generate large amounts of cash, including $23 billion in cash flow from operations in the last quarter alone. "
That's a lot of $$$$.
 
spiderman0616

spiderman0616

Suspended
Aug 1, 2010
5,668
7,490
I have stopped paying attention to the stock because it seems like any good news about Apple makes the stock go down, but can someone explain to me why this statement made it shoot up 10 points? It's not like people didn't already know about this.
 
I

iMikeT

macrumors 68020
Jul 8, 2006
2,304
1
California
spiderman0616 said:
I have stopped paying attention to the stock because it seems like any good news about Apple makes the stock go down, but can someone explain to me why this statement made it shoot up 10 points? It's not like people didn't already know about this.
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It's to give even more money back so investors. Possibly in higher dividend yields or a buyback. So people get in on it and rocket the stock price.
 
charlieegan3

charlieegan3

macrumors 68020
Feb 16, 2012
2,394
17
U.K
Val-kyrie said:
Following in the footsteps of Dell....

I wonder if Apple is also trying to distance itself from the perceived risk of increasing volatility in stock prices?
Click to expand...

macnerd93 said:
The timing is perfect. They are giving the money back because they have "Too" much money in cash reserves. Meanwhile, Dell is going private.

Michael Dell - "What would I do? I'd shut it down and give the money back to the shareholders"

Backfire :)
Click to expand...

Both beat me to a Dell comment - well played/bravo. :)
 
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