Apple Issues Statement About Returning Cash to Shareholders

[MacRumors]

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.

Apple's stock price rose sharply in the minutes following the release.

Article Link: Apple Issues Statement About Returning Cash to Shareholders

 

[portishead]

Randy Moss would approve of the Straight Cash Homey.

 

[blueroom]

In other news, BlackBerry...

 

[iomar]

What about their loyal customers?

 

[voyagerd]

Trying to decide if I should buy some more AAPL.

 

[macnerd93]

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

 

[pixelpro]

Did anyone say "PR Department opening up!"

 

[ogee]

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!

 

[ChrisTX]

Apple sits on SO MUCH money. Can they possibly ever spend it all?

 

[Yvan256]

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.

 

[Val-kyrie]

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?

 

[Evangelion]

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.

 

[ArtOfWarfare]

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!

Is that a literal bag of peanuts?

 

[4JNA]

Thanks for the free stock Bump activist dude.

hahaha... hey, Einhorn, next time RTFA of Incorporation before sueing. dumbass.

 

[smoledman]

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.

Explain to me why you care.

 

[ncaissie]

@Apple

Dump it in R&D and build me a jetpack!

 

[TEG]

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

 

[iMikeT]

hahaha... hey, Einhorn, next time RTFA of Incorporation before sueing. dumbass.

I'm not liking Einhorn's involvement in this. I just hope guys like this don't Bain Apple.

 

[Squilly]

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]

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.

 

[phillipduran]

What about their loyal customers?

Their loyal customers buy stock.

 

[iMikeT]

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.

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]

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?

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

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

 

[charlituna]

What about their loyal customers?

You get great tech that is so awesome that you buy more. If you want money perhaps you should use that tech for something profitable

 

[applegigs]

Trying to decide if I should buy some more AAPL.

Did that now is the time !