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Apple to Host Conference Call Monday Concerning its Near $100 Billion Cash Balance

If they announce a dividend, they are basically saying, we don't know what we are doing, here, you'll know better. If i thought i knew better, i wouldn't invest in stocks but run my own business.
 
Do dividends even make sense?

From my understanding, a significant portion of their cash reserves are held in overseas. The reason they don't bring the money back to US shores is because they will have to pay a hefty amount of corporate tax the moment they do so.

Thus, while they are rich on paper, they don't really have that much money held on local shores. Most are locked elsewhere. :confused:
 
Abazigal said:
Do dividends even make sense?

From my understanding, a significant portion of their cash reserves are held in overseas. The reason they don't bring the money back to US shores is because they will have to pay a hefty amount of corporate tax the moment they do so.

Thus, while they are rich on paper, they don't really have that much money held on local shores. Most are locked elsewhere. :confused:
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That's a good question.

Ok all you finance experts. And there appears to be a lot here.

Does Apple pay taxes on dividends given out from money held offshore ?

The offshore money brought back to the US would be taxable while a dividend would seem to be an expense. How's that work ?
 
Peace said:
That's a good question.

Ok all you finance experts. And there appears to be a lot here.

Does Apple pay taxes on dividends given out from money held offshore ?

The offshore money brought back to the US would be taxable while a dividend would seem to be an expense. How's that work ?
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The money would be subject to tax the moment it enters american soil.

So the problem would be spending it. What's the point of holding on to all that cash if you can never spend it?
 
If they weren't going to be doing something "special" with the cash, they would not have called this conference call.
 
iPad name

They are going to pay Proview $99 billion for the iPad name and Proview will demand more money!
 
Abazigal said:
The money would be subject to tax the moment it enters american soil.

So the problem would be spending it. What's the point of holding on to all that cash if you can never spend it?
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Well it's not really Cash, most of it is invested in various managed funds globally. It's just the horde is so large they could sensibly divest themselves of any of the assets in a suitable time frame to take advantage of opportunities. Which makes it like cash in they could spend it at will, but it's well invested to delivery it's own above inflation return.

It's not holding them back, but I guess it's not really moving them forward at any speed either.
 
5 ways Apple can spend cash

Generally, there are five ways a company can spend cash:

1- Grow The Business Organically. This is by far the most attractive option of the bunch as it signifies healthy expansion.

2- Dividends and Distribution. When shareholders are rewarded with cash in hand, there are positive ramifications.

3- Share Repurchases. This may bring higher earnings per share, but in some respects, the market looks through it, and multiples compress.

4- Mergers and Acquisitions. Strategic in concept, but nine out of ten don't add value.

5- Hold cash. The worst way for a company to penalize itself. Recent examples include Microsoft 32.60 -0.25 (-0.76%) , and Google (GOOG) 625.04. 3.91* (+0.63%)

'Nuff said.

My 2 cents
 
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MattInOz said:
Well it's not really Cash, most of it is invested in various managed funds globally. It's just the horde is so large they could sensibly divest themselves of any of the assets in a suitable time frame to take advantage of opportunities. Which makes it like cash in they could spend it at will, but it's well invested to delivery it's own above inflation return.

It's not holding them back, but I guess it's not really moving them forward at any speed either.
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You sure it is invested? I was under the impression they were really hiding the money under their pillows and mattresses! :p
 
Buy Lockheed Martin and start Space Tourism business instead of weapons
Or buy General Motors or Ford, we could use some iCars
 
Hmm, you could get an iPad with the dividend ;^)

$15-25 on 100 shares shares is enough to buy a new iPad and pay for the service for a few years. ;^)

KPOM said:
I'm guessing they will announce plans for a special dividend sometime in 2012 (maybe $15-25/share). Right now, qualifying dividends are taxed at 15% rather than at normal income rates (i.e. the same as long term capital gains). That special tax treatment is set to expire at the end of the year. It is also possible they will announce a small regular dividend (perhaps $1/share) that would not be very costly, but would open up their stock to investment by pension plans and mutual funds whose charters require them to invest in dividend-paying stocks. A stock buyback is also possible, but a bit silly when the stock is trading at record highs.

I also would not be surprised if they announce plans to invest a portion of their stockpile in an "incubator" for research and development (i.e. making private equity-type investments in startups). That would be productive use of the money, and potentially give Apple some leverage in the coming years in terms of intellectual property. Apple has a big enough stockpile of cash and investments that today, it really looks like an investment manager and technology company rolled into one. I'm not saying they will, but it would not surprise me.
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slu said:
Why? The stock price is already very high and all a stock buy back would do is increase the share price. My money is on a dividend of some sort. It is not Apple's money, it is the shareholders money. And if it is just going to sit there, it should be returned to them.
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I'm not an investor and I don't know a lot about it, but your comment seems to suggest that *all* of this nearly $100 billion is shareholder investment funds. Somehow that just doesn't jive with me. Apple is a top-performing retailer selling blockbuster products. I think a large portion of this cash is their money, not just shareholders.

Correct me if I'm wrong.

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xinu said:
-25% retail price from MacBookPros would mean +200% increase in sells !

P R O F I T
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If they drop the prices, people will still complain. It's not a solution. Healthy margins are always a better route. People are buying Macs by the truckload, so no need to drop the price.
 
Didn't Tim Cook just sell $100million (can't remember exactly) worth of stock. It can't be anything to do with stock etc as their previous actions would be scrutinised. Insider trading etc.
 
John McCollum said:
They could fund the war in Afghanistan for 333 days.

:mad:
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I like the idea, the US could continue to fund the war in Afghanistan via corporate sponsorship, what is more American than that.

Instead of Operation Desert Storm, it could be The iOS7 Operation. The military gets funds and the Apple brand get exposure outside of the US.
 
fermat-au said:
I like the idea, the US could continue to fund the war in Afghanistan via corporate sponsorship, what is more American than that.

Instead of Operation Desert Storm, it could be The iOS7 Operation. The military gets funds and the Apple brand get exposure outside of the US.
Click to expand...

Lol that is just awful :D
 
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