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Michael Nau  

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  • Apple: Time To Unleash A Massive Buyback Program [View article]
    I totally agree with the author. If they don't want to make an acquisition, keep $20B as working capital and return the rest to shareholders.
    Apr 17, 2013. 08:49 PM | Likes Like |Link to Comment
  • Apple Should Pay Its Tax Bill [View article]
    KenC, it just depends on how much they set aside, and whether they set aside the entire expected bill. If they have, then I was incorrect about my statement regarding increased earnings. Its a bit of a black box, so I'm not sure.
    Apr 16, 2013. 06:50 PM | Likes Like |Link to Comment
  • Apple Should Pay Its Tax Bill [View article]
    True, but they the $94.2B figure does not include that liability. You would have to do the subtraction yourself.
    Apr 16, 2013. 09:05 AM | Likes Like |Link to Comment
  • Apple Should Pay Its Tax Bill [View article]
    six-oh, nope. I bought in after the fall with an average cost basis of about $475. I'd like to see the price fall more as the dividend increases so I can add to my position on the cheap.
    Apr 15, 2013. 08:49 PM | Likes Like |Link to Comment
  • Apple Should Pay Its Tax Bill [View article]
    mhanley, you summed up my position perfectly. If you are like me and think that AAPL will increase in price to $600-$700 in a few years, its a pretty good deal. Just imagine how much better of shareholders would be if AAPL had initiated a big buyback program when the stock was at $200 a few years back.
    Apr 15, 2013. 05:48 PM | Likes Like |Link to Comment
  • Apple Should Pay Its Tax Bill [View article]
    Michael, excellent points. I don't think AAPL management is too distracted with financial engineering either. I think they are just acting out of habit by doing something that made sense when they had $10B in the bank but makes little sense now.
    Apr 15, 2013. 01:42 PM | Likes Like |Link to Comment
  • Apple Should Pay Its Tax Bill [View article]
    DjeelInvest, I suggest you only hold money market funds in your 401k.
    Apr 15, 2013. 01:29 PM | 2 Likes Like |Link to Comment
  • Apple Should Pay Its Tax Bill [View article]
    JUDOKA, I am not making a claim about the sort of tax system we should have, maybe I'd vote for your repatriation scheme. I'm focused on the tax system we do have, and how to maximize value within real world constraints.

    Here's a question: if you own any dividend-paying stocks, would you be willing to forego those dividends if the underlying profits were not taxed at all but were instead locked up forever in the Caiman Islands earning 1%? I wouldn't, and I think a lot of income-oriented investors out there would agree with me.
    Apr 15, 2013. 01:27 PM | 1 Like Like |Link to Comment
  • Apple Should Pay Its Tax Bill [View article]
    The have set aside some money for taxes, but they don't directly subtract that liability from the $94.2B figure on the balance sheet, which would be lower if you subtracted the liability from the asset. You say "tomayto" I say "tomahto".
    Apr 15, 2013. 01:11 PM | Likes Like |Link to Comment
  • Apple Should Pay Its Tax Bill [View article]
    What's wrong with the stock dropping by the amount of the dividend? All dividend stocks do that.
    Apr 15, 2013. 01:02 PM | Likes Like |Link to Comment
  • Apple Should Pay Its Tax Bill [View article]
    I don't think they can buy back stock with foreign cash. If they could, that's the strategy I would reccommend.
    Apr 15, 2013. 01:01 PM | Likes Like |Link to Comment
  • Apple Should Pay Its Tax Bill [View article]
    I'm not saying that the way we tax corporate profits is correct. I'm saying that AAPL's foreign cash is doing nothing for shareholders. I belive that AAPL stock will strongly outperform cash in the future, so I'd rather have more stock.
    Apr 15, 2013. 01:00 PM | 5 Likes Like |Link to Comment
  • Apple Should Pay Its Tax Bill [View article]
    FredRobt, agreed. I used the 35% rate to be conservative.
    Apr 15, 2013. 12:56 PM | Likes Like |Link to Comment
  • Apple's Story: Only The Beginning? [View article]
    Great article, I basically agree, but I give AAPL lower marks on cash management than you do. They have already ratcheted up their ecosystem build-out costs and are still drowning in cash. Personally, I don't see why they need to have more than $20 Billion on their balance sheet, given that the business is producing about $1 Billion in FCF per week.

    I'd actually like to seem them repatriate most of their cash to buy back stock. Yes, I know that 30%-35% of that cash will disappear via taxes, but they should suck it up and take the hit. I'd rather see the float reduced by 25% permanently while the stock is cheap rather than have have a bunch of useless cash earn 1%. If I wanted such garbage returns, I'd buy treasuries.

    Long AAPL, not bonds
    Apr 12, 2013. 10:58 AM | 7 Likes Like |Link to Comment
  • Reflections On The Current State Of Apple [View article]
    Bret, well said, I totally agree. AAPL is ridiculously cheap and short-term sentiment is the only thing keeping it down.
    Apr 11, 2013. 04:46 PM | 4 Likes Like |Link to Comment
More on AAPL by Michael Nau
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