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

HelveticaNeue said:
Why does a company with $100b in the bank need to worry about financing? And shouldn't the stock holders be happy that the stock is soaring?
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To your first point he was wrong, to your second I will answer being a shareholder although I'm happy with the appreciation but the cash hoard is unnecessary and in my opinion not in the shareholders best interests. Shareholders are the owners of the company. Whether my $1,000 turned into $120,000 or not if they wanted to build a moon base for $50 billion you better believe I would complain about it since a portion of that cash hoard (in theory) is mine.

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angrynstupid said:
Tim Cook just sold 20,178 shares of stock. If there's going to be a dividend, he'll be missing out on some extra green.
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I'm pretty sure it was sold from him executing an option he had and if he would have let it expire worthless he would have got nothing. Admittedly that's just what I heard though haven't looked into it myself.
 
Coming out of the new iPad launch weekend, Monday seems like an odd day to hold a 9am conf. call regarding its cash balance. Why would they want to divert the subject away from iPad sales... unless iPad sales were weaker than expected? It's very un-Apple for it to step on its own message like this. An announcement like this certainly could have waited until mid-week or even next Monday. It just raises a red flag for me. Hope I'm wrong.
 
Nintendo sounds like a good option. Would give Apple an inside game developer as well as a leg into the home console game.

Plus, Apple and Nintendo share that "Our way is the only correct way" mentality.
 
IJ Reilly said:
In theory at least the money didn't totally go down the proverbial rat hole, since it increased EPS from whatever it would have been by the percentage of the buyback. Still, I say give us the money. I could figure out something to do with it, like pay for that new iPad I just bought.
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Oh, I fully understand the theory, but in practice the money simply went poof.

Again, it's more of a signal that the company has just run out of ideas on what to do. Lack of vision, lack of foresight, lack of.. pretty much anything.

The company has been broken apart since then, but the signs were there for the reading years in advance.

Special dividend would be very preferable to a buy back.

Overall, I do like Job's philosophy - make great products and the stock price will follow. He said that ages ago and he's been proven right. I've worked for many companies that have the tail wagging the dog, and the shareholders come first - even before the customers, and that's a bad formula.
 
Lynn Belvedere said:
Why not keep a stockpile of cash for massive investments in R&D, acquisitions, and/or marketing when things aren't going so well? Looking at the stock price, I would think the last thing apple needs is to issue dividends.
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I'm sure most of it will be. But they can probably spare 10 billion or so for some other use, especially if it brings with it some positive PR.
 
Demonofelru said:
I'm pretty sure it was sold from him executing an option he had and if he would have let it expire worthless he would have got nothing. Admittedly that's just what I heard though haven't looked into it myself.
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Exercising his option gives him shares for a reduced cost basis. Selling those shares is a separate transaction resulting in not only cash but a taxable event due to the capital gain (at 15%, not the proposed Obama 42%).

He probably has to diversify.

Rocketman
 
Lepton said:
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
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They are going to buy Fox and make you pay per ep to watch American Idol, Alcatraz etc. Bring back Terra Nova, keep Fringe, etc as well.

Nice thought perhaps but not likely. Same for buying Time Warner Cable, starting a cell service company etc.

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David085 said:
Buy Microsoft sounds like a great plan for Apple.
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Actually it is a terrible idea. Suicide in fact.

Apple can get away with much of what it does because of the existence of Microsoft and Windows. End that and the DOJ would be on their asses left and right over everything. That is if they were even allowed to make such a plan
 
I have to give a friend and former co-worker the credit for this because he had the idea years ago, but now it makes sense. Considering they are in bankruptcy, Apple should buy Kodak.
 
With that kind of money you could do anything, except a manned mission to mars maybe... ;)

1.Getting into a new high tech market, especially energy research would be one possibility. Alternative energy will be the cash cow of the future.

2.Or expanding into a field that's closer to what Apple is doing now, e.g. getting into the search engine market. Search engines sit at the center of the web and are extremely powerful.

3.Buying back stock. Most boring alternative, and the least to make sense as Apple's stock is already sky high.

4. Paying a dividend.

5. More unlikely: Apple going into the content business: producing movies, music, books, shows, etc.

A combination of 1 OR 2 with or without 4 seems to be the most likely to happen.

Anyway, an expansion of the successful Apple Way to other fields would be very interesting.
 
bobsentell said:
Nintendo sounds like a good option. Would give Apple an inside game developer as well as a leg into the home console game.
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They don't need to worry about the console game.

Just port Super Mario Bros to the iPad, put Duck Hunt on the Apple TV with your iphone/touch as the gun. You could charge $20 a game and folks would pay.
 
Chupa Chupa said:
Coming out of the new iPad launch weekend, Monday seems like an odd day to hold a 9am conf. call regarding its cash balance. Why would they want to divert the subject away from iPad sales... unless iPad sales were weaker than expected? It's very un-Apple for it to step on its own message like this. An announcement like this certainly could have waited until mid-week or even next Monday. It just raises a red flag for me. Hope I'm wrong.
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No red flag warnings for me. I'm expecting TC to announce a "modest" recurring div, somewhere around 2.5% yield. Savy investors have been waiting for this announcement and I even suspect some of the recent run up has been associated with the "expectation" (i.e. leak) of this announcement.

I also wouldn't be surprised if there was an iPad # announcement mid week. By all accounts it will be the largest (unit wise) Apple product intro ever.

cheers to the longs
JohnG
 
The 100 billion pays for the giant engines that will lift the coming spaceship (aka "Apple Headquarters") into geosynchronous orbit. You don't think that big ring is just a building, do you? Tim thinks there are too many rumor sites and leaks.
 
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Apple has 100 billion in cash!!! and it still charges me a premium on apple products which I have been buying since 2005.

Never got a discount on a single product that I bought and they are swimming in money. Just slash you prices by 25%.

Talk about being greedy!
 
Why did Tim Cook just sell a bunch of his shares last week of shares?

Lynn Belvedere said:
Why not keep a stockpile of cash for massive investments in R&D, acquisitions, and/or marketing when things aren't going so well? Looking at the stock price, I would think the last thing apple needs is to issue dividends.
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Why did Tim Cook just sell a bunch of his shares couple last weeks ago if he knew this was coming?
 
Chupa Chupa said:
Coming out of the new iPad launch weekend, Monday seems like an odd day to hold a 9am conf. call regarding its cash balance. Why would they want to divert the subject away from iPad sales... unless iPad sales were weaker than expected? It's very un-Apple for it to step on its own message like this. An announcement like this certainly could have waited until mid-week or even next Monday. It just raises a red flag for me. Hope I'm wrong.
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Not necessarily. The iPad numbers will be discussed ad nauseum in the Q2 earnings release next month, and they can always just issue a standard press release with initial sales data like they did with the iPhone 4S and iPad 2.

As for cash, it isn't every day that a company decides what to do with $100 billion. Believe it or not, that is a lot less common than a product launch, even something as significant as the new iPad.
 
johnnymg said:
I also wouldn't be surprised if there was an iPad # announcement mid week. By all accounts it will be the largest (unit wise) Apple product intro ever.

cheers to the longs
JohnG
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I think they will issue a press release on the new iPad during the week, but I doubt it will top the iPhone 4S. Remember, Apple sold 37 million iPhones last quarter and 15 million iPads. They sold 4 million iPhones over the first weekend, and had pre-orders as well.
 
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