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Brad Kenagy  

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  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Thank you for the comment and your thoughts, I completely agree with everything that you said. Another commenter above asked about the debt/cash ratio and this was my response and the data shows why increasing debt is in fact an issue.

    "I compiled the data and the data shows that Debt as a Percentage of Total Cash has increased from 11.26% at this time last year, to a current level of 20.71% for the quarter that was just reported. I also looked at Debt to US Cash since US cash is what is available for capital returns you can see that Debt/ US Cash has gone from 92.18% at this time last year to 178.10% for the quarter that was just reported."

    Data Table: http://bit.ly/1bWkrZm
    Apr 30, 2015. 12:24 AM | Likes Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Thank you for the comment, and pointing out the information about the Moody's note, here is the link for those who are interested. On a side not, ratings agencies have been wrong before.

    http://bit.ly/1bWQg4d
    Apr 30, 2015. 12:21 AM | Likes Like |Link to Comment
  • Salesforce reportedly approached by potential buyer; shares +15.4% [View news story]
    I have the Dark Horse in the race, Dell !!
    Apr 29, 2015. 11:44 PM | 1 Like Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Thank you for the comment and the points you brought up which I agree with except your second point. I believe Apple can only use its foreign cash to repay foreign debt, and not any debt issued in the U.S.
    Apr 29, 2015. 09:24 PM | Likes Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Thank you for the comment. I am not bearish on Apple, from my article on Apple in February I have a target for Apple of $169/share. I am just pointing out that Apple has $88 billion remaining to spend over the next two years, and that they will continue large amounts of debt and use more cash flows to fund that $88 billion capital return program.
    Apr 29, 2015. 09:21 PM | 1 Like Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Thank you for the comment, just wanted to correct you that Apple has $40+ billion in debt.
    Apr 29, 2015. 09:18 PM | Likes Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Thank you for the comment, Don't get me wrong, I am bullish on Apple, in my article in February I gave a price target of $169, so I am still bullish on Apple. However, with U.S. cash near the lowest level in the last 3 years, and debt increasing, and the CFO saying that a large portion of the remaining $88 billion will be funded through debt.
    Apr 29, 2015. 09:16 PM | Likes Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Thank you for the comment, the problem is 88% of Apple's cash is offshore and CANNOT be used for capital returns. Apple has $22.5 in U.S. Cash available for for capital returns and they have $88 billion remaining on the capital return program, and the CFO explicitly stated that the a large portion would be funded with debt.
    Apr 29, 2015. 09:05 PM | Likes Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    I usually say thank you for the comment, but I only say thank you to people who are respectful.
    Apr 29, 2015. 08:53 PM | 2 Likes Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Thank you for the comment. Yes, Apple is using some of its foreign cash for the items that you mentioned, my point was that Apple has no intention to use any of its foreign cash for capital returns.
    Apr 29, 2015. 08:52 PM | 1 Like Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Interesting Idea, however if it were possible I would have thought they would have figured it out by now.
    Apr 29, 2015. 08:49 PM | Likes Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Thank you for the comment. As of this point I believe there no bonds that Apple has issued that have a negative coupon rate. The only way Apple would get to a cash balance is in 10-20 years time, and if they never repatriated any of their foreign cash.

    To answer your question, the drawback is that Apple has used about all the U. S. Cash balance they can, therefore they will have to issue large amounts of debt, and divert more cash flows than they have in the past to capital returns.
    Apr 29, 2015. 08:38 PM | Likes Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Thank you for the comment. I compiled the data and the data shows that Debt as a Percentage of Total Cash has increased from 11.26% at this time last year, to a current level of 20.71% for the quarter that was just reported. I also looked at Debt to US Cash since US cash is what is available for capital returns you can see that Debt/ US Cash has gone from 92.18% at this time last year to 178.10% for the quarter that was just reported.

    Data Table: http://bit.ly/1bWkrZm

    So as you put it, this is bad for Apple.
    Apr 29, 2015. 08:28 PM | Likes Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Thank you for the comment, I agree that it is smart if a company wants to issue debt in this environment given low interest rates.
    Apr 29, 2015. 08:18 PM | 1 Like Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Thank you for the comment, you are exactly right, however, there is no way Apple would bring back its cash being taxed at the current 35% rate. Plus any state taxes that California may levy on that cash.
    Apr 29, 2015. 08:15 PM | Likes Like |Link to Comment
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