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Apple to Host Conference Call Monday Concerning its Near $100 Billion Cash Balance
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Dividends and Splits
my view is that they should do a 20 to 1 stock split to get the price far enough below $100 that it won't cross that barrier for a while and then also issue dividends. i know, i know, theoretically stock splits don't do anything, but average investors are not satisfied buying part of a share - it just isn't very satisfying. this would, practically, increase the population of potential stock buyers. the dividend would allow funds to buy apple that can't right now because it doesn't have a dividend. this would also increase the population of potential buyers. together this has two effects: reduce the effects of speculators and get the stock up towards where it really ought to be.
my view is that they should do a 20 to 1 stock split to get the price far enough below $100 that it won't cross that barrier for a while and then also issue dividends. i know, i know, theoretically stock splits don't do anything, but average investors are not satisfied buying part of a share - it just isn't very satisfying. this would, practically, increase the population of potential stock buyers. the dividend would allow funds to buy apple that can't right now because it doesn't have a dividend. this would also increase the population of potential buyers. together this has two effects: reduce the effects of speculators and get the stock up towards where it really ought to be.
I am wondering why Apple doesn't acquire lots of business that feed into their products--stuff with true and far-reaching purpose. Might take a lot more cash to buy Sharp or Samsung.
Everyone has more money then them! They are tens of trillions in debt. There is no one more poor than the USA.
Everyone has more money then them! They are tens of trillions in debt. There is no one more poor than the USA.
Cook will announce that he is going to Vegas and will bet all $100 billion on 1 hand of blackjack.
Its going to be a dividend but man the things they could do....
Become their own cell network provider. The only network for just iPhones.
Become their own cable company/internet provider. No data limits!
Buy Samsung and start copying their own designs.
Free iPads for every student! Ok, free educations for every student!
Cure cancer...nah!
Its crazy to think they have enough money to send every kid in the country to college, to eradicate world hunger (ignoring geopolitics for the moment), or to cure some deadly disease, but more than likely they'll pay some rich a$$hole for holding a share of their stock, even though he created nothing, did nothing, and contributed nothing. As if the stock going up 50x over isn't payment enough.
Here is where I start to really miss Steve. At the end of the day, I really don't think he gave a rats &*(^ what investors thought. He new if he made great products they would continue to throw money his way. I'm sure Tim knows how to finesse Wall Street and in the end make Apple a "better" company but all I'm interested in is better products.
Become their own cell network provider. The only network for just iPhones.
Become their own cable company/internet provider. No data limits!
Buy Samsung and start copying their own designs.
Free iPads for every student! Ok, free educations for every student!
Cure cancer...nah!
Its crazy to think they have enough money to send every kid in the country to college, to eradicate world hunger (ignoring geopolitics for the moment), or to cure some deadly disease, but more than likely they'll pay some rich a$$hole for holding a share of their stock, even though he created nothing, did nothing, and contributed nothing. As if the stock going up 50x over isn't payment enough.
Here is where I start to really miss Steve. At the end of the day, I really don't think he gave a rats &*(^ what investors thought. He new if he made great products they would continue to throw money his way. I'm sure Tim knows how to finesse Wall Street and in the end make Apple a "better" company but all I'm interested in is better products.
The obvious and boring idea is to pay dividends. But Apple has said on numerous occasions that their large cash horde gives them opportunities that no one else has, so perhaps it actually will be something super exciting.
That would be nice, but the Samsung Supply Deal expires Dec 2014. Now would be the time to put up your our own FAB Plant. They have the in house design talent, and would have no trouble poaching talent they need. Buying Samsung outright would be a Korean PITA. Unless it would be to purchase the Austin Plant outright. I can't see that however.
I bet they'll buy Twitter, integrate it with Ping, etc.
I know this fell through once, but they should try again - Buy Dropbox. Seriously, iCloud with Dropbox features (or erm, Dropbox with iCloud features) would be a dream come true.
Maybe they could spend the money on upping their free storage for iCloud users? 5GB *sigh*
I also wouldn't mind if they paid for my college education
I know this fell through once, but they should try again - Buy Dropbox. Seriously, iCloud with Dropbox features (or erm, Dropbox with iCloud features) would be a dream come true.
Maybe they could spend the money on upping their free storage for iCloud users? 5GB *sigh*
I also wouldn't mind if they paid for my college education
As most money is offshore and would be subject to 30% tax,im thinking one time div is out...also share buy back
Im guessing a yearly div with about a 2.5% yield as of closing price on friday
The stock tommorrow...will break trading vol records! and could go well north of 625
Im guessing a yearly div with about a 2.5% yield as of closing price on friday
The stock tommorrow...will break trading vol records! and could go well north of 625
Still a Bad Sign
Eddy Cue (Jobs' right arm when it involved negotiations... Is not a "Product" guy), Scott Forstall (Excellent UI guy for software... Is not a "Product" guy), Jony Ive (Excellent Designer ... Is not interested in being a pure product guy, like Jobs was).. These are all based off Jobs' words from his bio.
With all that said, the IRS argument is not really one. Why couldn't the IRS make a claim at 90 billion or 70billion??. This is really just a sign that Apple is turning slowly away from Jobs' vision. Again Jobs' could careless about investors, and Apple should have stayed with that mentality.
And you say Apple is at the top. But that's in A few segments "Phones" & "Tablets" there is still PC's and other markets they can tap to get even further to the Top, all because your "At the Top" doesn't mean you can't raise the bar higher.
Apple needs to re-embrace secrecy, and focus obsessivley on products in the pipeline, to overwhelm the fans and dominate the foes.
The public doesn't need to know about Apple's plan about its cash. The public needs to know, when their is a NEED-TO-KNOW.
Cook needs to loose the bean counter MBA mentality.
Just saying
Eddy Cue (Jobs' right arm when it involved negotiations... Is not a "Product" guy), Scott Forstall (Excellent UI guy for software... Is not a "Product" guy), Jony Ive (Excellent Designer ... Is not interested in being a pure product guy, like Jobs was).. These are all based off Jobs' words from his bio.
With all that said, the IRS argument is not really one. Why couldn't the IRS make a claim at 90 billion or 70billion??. This is really just a sign that Apple is turning slowly away from Jobs' vision. Again Jobs' could careless about investors, and Apple should have stayed with that mentality.
And you say Apple is at the top. But that's in A few segments "Phones" & "Tablets" there is still PC's and other markets they can tap to get even further to the Top, all because your "At the Top" doesn't mean you can't raise the bar higher.
Apple needs to re-embrace secrecy, and focus obsessivley on products in the pipeline, to overwhelm the fans and dominate the foes.
The public doesn't need to know about Apple's plan about its cash. The public needs to know, when their is a NEED-TO-KNOW.
Cook needs to loose the bean counter MBA mentality.
Just saying
My goodness you're not the first one to say this it's probably sarcasm, but no they couldn't. First of all the DOJ would put a stop to it before Tim Cook could get the words out of his mouth. Secondly yes, Apple has tons of cash probably around $105 billion or more by now, but much of that would have to pay a 30%+ tax on to get it back to the states and Microsoft has a market cap of around $275 billion. That's just the market cap Microsoft would not agree to it without a premium for their shareholder most likely a pretty significant one. Lastly why in the world would Apple even want Microsoft? Don't get me wrong Microsoft is a massively profitable company, but I can't see them adding anything to Apple who already have their own OS, hardware, etc. The only thing I could see apple maybe getting any use out of is their entertainment division, and even that is questionable.
The public doesn't need to know about Apple's plan about its cash. The public needs to know, when their is a NEED-TO-KNOW.
Cook needs to loose the bean counter MBA mentality.
Just saying
Perhaps the public needs to know now because they are going to do something immediately. If it's a buyback, you can't just do it. You need to announce it, because there are lots of legal obligations around it.
For all of Steve Jobs' greatness, he wasn't a perfect CEO. The stock option repricing nearly got the company into a lot of trouble (and what Apple did wasn't much different from what other companies that DID get into trouble did). I don't think Steve Jobs understood the ramifications (it wasn't the kind of detail that he cared about), but that excuse won't fly any longer.
Investment in Humanitarian Issues
I'll say straight up that I don't know a great deal about financial strategy or the like, but nonetheless, my thoughts/predictions anyway:
•I would bet against dividends. Their stock has been soaring for a long time now and that should make investors happy enough.
• The construction of a manufacturing plant in the US is interesting, but a long shot. The problems with finding this kind of labor in the states has been discussed elsewhere.
• Alternatively, and perhaps more interesting, would be this: improve conditions and pay significantly at manufacturers in Asia (or, also possibly, create their own custom plants). Though
has received some undeserved attention on their labor use—when they are similar to other tech companies—if they took care of this problem completely, it would be an industry-shifting move and one that could be hard for other companies to match for a while.
• Relatedly, I feel, to the previous point because of its human-relations potential: invest heavily in the overall sustainability of the company. The environment has become less hip of a topic recently, but it would still be an interesting, and hard to beat, tactic.
Possible?
I'll say straight up that I don't know a great deal about financial strategy or the like, but nonetheless, my thoughts/predictions anyway:
•I would bet against dividends. Their stock has been soaring for a long time now and that should make investors happy enough.
• The construction of a manufacturing plant in the US is interesting, but a long shot. The problems with finding this kind of labor in the states has been discussed elsewhere.
• Alternatively, and perhaps more interesting, would be this: improve conditions and pay significantly at manufacturers in Asia (or, also possibly, create their own custom plants). Though
has received some undeserved attention on their labor use—when they are similar to other tech companies—if they took care of this problem completely, it would be an industry-shifting move and one that could be hard for other companies to match for a while.• Relatedly, I feel, to the previous point because of its human-relations potential: invest heavily in the overall sustainability of the company. The environment has become less hip of a topic recently, but it would still be an interesting, and hard to beat, tactic.
Possible?
Don't tell me for one second that Apple wouldn't kill for the rights to the zune.
This happens a couple hours after the Tokyo market closes I believe.
We're gonna see a new subsidiary in the making.
We're gonna see a new subsidiary in the making.
