kjjerome, thanks very much. I have not attempted to lay out the business case for Intel here, simply the financial analysis piece of it. You are right that there is much more to the story.
MrMatt, you are right that 60% is sustainable but the point I'm trying to make is that, in the past three years, we don't know where the top is on that ratio. If it stays at 60%, Intel is fine. If it keeps going up like it has, we may see some problems. That's the only point I was trying to make.
virtalex, thanks very much. You are right that we need to know what Intel is working on and how that will affect future cash flows. I will defer to Ashraf on that one because he is far more knowledgeable than I am on the subject.
I'm simply trying to raise awareness that Intel's current cash expenditure trend is not sustainable.
3 Industrials With Rapidly Increasing Debt [View article]
cpa28761, you are right and I understand your point. However, the point that I was making is that UTX has no visible means of paying off its massive debt other than simply trying to earn its way out from under it.
3 Industrials With Rapidly Increasing Debt [View article]
Chickenpookie, on some level, yes, but I think these companies have bitten off more than they can chew. Even if it isn't due for a long time, they still need to be able to pay the interest and principal at some point.
Apple: A Deep Dive Into Perhaps The Most Profitable Bond Issue Ever [View article]
desicon, I don't know what the tax consequences of that would be but it seems as though if Apple could get that "free lunch" they would have by now. I believe there are tax issues that may complicate that strategy but I am by no means an expert.
Apple: A Deep Dive Into Perhaps The Most Profitable Bond Issue Ever [View article]
croatkid, thanks very much! It is hard to say when the dividend will be raised but since they did 15% this year, I would say smaller increases are probably on the horizon. Perhaps high single digit percentage increases since the yield is already pretty robust at these levels.
Apple: A Deep Dive Into Perhaps The Most Profitable Bond Issue Ever [View article]
Michael, thanks very much. I think Apple will repatriate a lot of the foreign cash when they get a tax break to do so. If that doesn't happen, we may see more debt issuances against it. And you're right, they are using cash about as quickly as they make it so existing cash isn't likely to be depleted any time soon.
Intel: How Safe Is The Dividend? [View article]
Josh
Intel: How Safe Is The Dividend? [View article]
Thanks for the comments,
Josh
Intel: How Safe Is The Dividend? [View article]
Thanks for the comments,
Josh
Intel: How Safe Is The Dividend? [View article]
I'm simply trying to raise awareness that Intel's current cash expenditure trend is not sustainable.
Thanks for the comments,
Josh
3 Industrials With Rapidly Increasing Debt [View article]
Thanks for the comment,
Josh
3 Industrials With Rapidly Increasing Debt [View article]
Thanks for the comment,
Josh
Apple: A Deep Dive Into Perhaps The Most Profitable Bond Issue Ever [View article]
Great question.
Josh
Apple: A Deep Dive Into Perhaps The Most Profitable Bond Issue Ever [View article]
Josh
Apple: A Deep Dive Into Perhaps The Most Profitable Bond Issue Ever [View article]
Josh
Apple: A Deep Dive Into Perhaps The Most Profitable Bond Issue Ever [View article]
Josh
Apple: A Deep Dive Into Perhaps The Most Profitable Bond Issue Ever [View article]
Josh
Apple: A Deep Dive Into Perhaps The Most Profitable Bond Issue Ever [View article]
Josh
Apple: A Deep Dive Into Perhaps The Most Profitable Bond Issue Ever [View article]
Josh
Apple: A Deep Dive Into Perhaps The Most Profitable Bond Issue Ever [View article]
Josh
Apple: A Deep Dive Into Perhaps The Most Profitable Bond Issue Ever [View article]
Thanks for the comments,
Josh