Some people have a love for the buying power of money, and a corporate company has the legal status of 'personhood'. If that company ends up making them money, they would state that they 'love that company'.
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Apple's Stock Reaches its Highest Price Ever
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Some people have a love for the buying power of money, and a corporate company has the legal status of 'personhood'. If that company ends up making them money, they would state that they 'love that company'.
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I forget what I sold it at, but it was even longer ago. But I don't think it was a bad move. I stopped believing in Apple and was worried that they'd crash one day, so I put my money somewhere safer and lower-maintenance that also makes money, the S&P500; focusing on my school/work and sleeping well at night is priceless
Same with me, somewhat. Looking to buy a house soon, so using that as part of the downpayment. Can't complain, really, I bought at $107 pre stock split, so I essentially sold at $840 - not a bad return.
I certainly expect Apple to continue returning capital to investors, with or without a tax holiday in the near future. I also expect dividends to continue to increase. Further, it wouldn't surprise me if Apple shifted its capital return program somewhat toward more dividends and less stock repurchases. As the stock price gets closer to what Apple might consider a fair valuation, it would make less sense to have as large a buyback program.
And as I suggested, I also wouldn't be surprised if a tax holiday caused Apple to increase how much capital it returned to investors - perhaps through dividends. I just don't see it increasing its capital return program by a huge amount because it's already returning capital at an incredible rate.
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When it comes to the cash on Apple's balance sheet: Even if it's only being valued for its potential to be returned to investors, it's still being valued. It either represents the potential to give each shareholder $X at some point in the future or it represents the potential to increase each shareholder's portion of AAPL's future income (without additional cost to them), or both. The market understands those concepts and thus (presently) values the cash to some extent, even if it doesn't think the cash means much in terms of how it might help Apple operationally in the future. Also, even if the cash didn't (currently) represent potential in terms of Apple's future operations and didn't represent potential in terms of returning it to shareholders, it would still have some value as the basis of an additional (and fairly safe) revenue stream for Apple. Apple doesn't make a huge amount of investment income as compared to what it makes from its normal operations, but that income isn't exactly chicken feed either.
Fair enough. When I get prickly is when someone insists that if Apple gives $X to investors as a dividend, that this reduces the value of the company by $X. I realize that isn't what you are arguing, but I have heard it a lot. Coming up with the part of the current market cap that is supported by cash assets, that's pretty much impossible.
I like their products, and I like their "marches to their own beat and not caring a hoot about what the rest think" attitude, and I like how they have managed to prosper despite this attitude (or perhaps, because of it).
There's a lot to admire and respect.
You might be right about buybacks, but I'm not sure how much higher Apple will go on dividends. What are you thinking, 2% yield? 2.2%?
That would be an increase of around $0.60 a share, and at little more than $3B additional a year, would barely make a dent in the cash hoard. They could increase the dividend by much that today without breaking a sweat.
You're right, any most people are expecting that anyways. But I just can't see Apple going over .70 a share, am I wrong?
No idea honestly. All I know is if they are able to repatriate a few ten of billions the question will be what other uses they might have for it.
If I remember the pricing correctly, I bought like 22 shares @ ~ $13 back in 2001. About all I could afford before I drove out to SF for MacWorld. The broker thought I was nuts buying AAPL shares, but their stock usually popped significantly after the previous shows. And it did again that year, more than doubling (if I remember correctly). I sold half and after a few years, apparently forgot I had any shares at all.
I live in Florida, where unclaimed assets get turned over to the state. Unfortunately, the brokerage firm sold the shares before turning over the gains to the state. If I had been mindful of the shares, I likely would have sold them before the state did. But if I had remembered I owned shares after the iPhone came out, wow!
It's good to have some skepticism. Most people can't predict the future with stocks. Apple is not too big to fail either.
I have faith. That while Apple isn't infallible (thank god), it most certainly won't fail for the reasons outlined in this thread (and many others).