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Apple to Host Conference Call Monday Concerning its Near $100 Billion Cash Balance
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What do you think a dividend payment will do to the stock price?
Any business decision that DOESN'T drive stock price is a bad business decision. Remember, Apple's prime objective as a company is to generate value for its shareholders. That is their number 1 priority. Everything else is marketing fluff talk.
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Of course, why not. Everybody can purchase Apple shares, even Apple themselves.
this would be amazing
From my now-locked thread...
I'm actually worried it could be a boring dividend.
But that would be the expected thing, so hopefully they skate to where the puck will be.
* Search?
* TV?
* Buying a network operator? Starting a network?
I have no idea either.
I'm actually worried it could be a boring dividend.
But that would be the expected thing, so hopefully they skate to where the puck will be.
* Search?
* TV?
* Buying a network operator? Starting a network?
I have no idea either.
They could likely acquire any number of companies before raising anti-trust concerns. Google just acquired Motorola Mobility, for instance. They could theoretically acquire a NAND or LCD/IPS screen manufacturer to reduce dependence on Samsung, for instance.
That said, companies don't pre-announce press conferences for acquisitions. They just send out a release right before the market opens. They also wouldn't characterize it as "discussing our cash balance." Something in the $10+ billion range would be more transformational.
Not necessarily. Qualifying dividends are taxed at 15% for US shareholders (part of the "Bush tax cuts" that expire on 12/31/12). Dividend tax rates are set to soar in 2013, so if they are going to announce a large cash dividend, this would be the year to do it.
Not A Good Sign
Though Tim Cook has the reigns at Apple, he should still be following the vision Steve Jobs had.
Jobs could careless about investors, all Jobs was concerned about was making more money so shareholders can purchase the things they desired. Being so open about money is really a bad sign in my opinion. Apple in the past never catered to such, sharks and leeches.
Cook needs to make sure the company is innovating and bringing out "insanely great" products. Jobs noted that Cook wasn't a product guy, but product is what Apple needs to continue, to change markets. Talking about Cash and being somewhat of a bean counter to these shareholders, sounds like Apple is slowly shifting off the plan Jobs left them to develop.
Though Tim Cook has the reigns at Apple, he should still be following the vision Steve Jobs had.
Jobs could careless about investors, all Jobs was concerned about was making more money so shareholders can purchase the things they desired. Being so open about money is really a bad sign in my opinion. Apple in the past never catered to such, sharks and leeches.
Cook needs to make sure the company is innovating and bringing out "insanely great" products. Jobs noted that Cook wasn't a product guy, but product is what Apple needs to continue, to change markets. Talking about Cash and being somewhat of a bean counter to these shareholders, sounds like Apple is slowly shifting off the plan Jobs left them to develop.
Displays
Didn't I read something recently that Samsung was spinning off it's display manufacturing division?
Maybe Apple will be buying it as part of vertical integration efforts, just like they have done with processors and memory. Tricky part is, Samsung produces displays for many many other corporations. Perhaps Apple will buy it and operate as a subsidiary?
edit: Reuters: Samsung considering options for LCD business
Still, this would be but a drop in the $100 billion bucket.
Didn't I read something recently that Samsung was spinning off it's display manufacturing division?
Maybe Apple will be buying it as part of vertical integration efforts, just like they have done with processors and memory. Tricky part is, Samsung produces displays for many many other corporations. Perhaps Apple will buy it and operate as a subsidiary?
edit: Reuters: Samsung considering options for LCD business
Still, this would be but a drop in the $100 billion bucket.
There are only two companies that DOJ would definitely want to block: Google and Microsoft. And then there's a third likely case, largely due to ongoing patent disputes: Samsung. Plenty of other fish in the sea, as it were.
I believe that building a fabrication plant would be an interesting idea, because they would be more independent from other companies, like samsung, and it is clear that their needs in silicon components will rise. Also I am not a stockholder so I don't care for a dividend, plus it's better to invest money (which create jobs etc. that just giving it as dividends.
That has to be one of the most bone headed assessments I have ever heard. What exactly happened "under Jobs" leadership (sic)? Capital appreciation beyond any of our expectations and growing Apple to the largest capitalization in the world - duh... What are you thinking or smoking????????
I always thought the general consensus was that dividends are for when companies see their growth potential dwindling and use dividends as way to attract more share holders.
Content
Another wild idea... Apple will buy a controlling stake in some movie studio and allow it to operate independently. Thus securing rights to content and putting pressure on other movie studios to open up licensing?
Disney, for example, has total assets = ~$72B. Estate of Steve Jobs is the largest stockholder.
Another wild idea... Apple will buy a controlling stake in some movie studio and allow it to operate independently. Thus securing rights to content and putting pressure on other movie studios to open up licensing?
Disney, for example, has total assets = ~$72B. Estate of Steve Jobs is the largest stockholder.
That makes sense from the perspective of a stock holder, a stock buy back makes more sense for apple.
Going to build their own FAB Plant in the US.
That is a great idea, or go back to doing significant manufacturing here.
I could also see them buying a TV studio or cable company so they can become a cable company sort of like DirecTV except via the Net and supply the usual channels any cable provider has.
I find it interesting this call happens just before the market opens. Why? Usually news is announced after the close. Must be something which will impact the market significantly.
Jony Ive, Eddy Cue, and Scott Forstall are the guys worrying about insanely great products. Tim is focusing on being a good CEO. One person can't replace someone like Steve Jobs (the likes of whom come around maybe once a generation, or less). Steve Jobs got Apple to the top. Now that they are there, their needs are a bit different. Staying on top is a different exercise from getting there.
Also, there are tax and legal consequences of having a large cash balance. If they don't do something, the IRS can claim they are hoarding cash and impose a punitive tax rate on them. They need to address this so that it is off the table, and they can then go back to focusing on making insanely great products.