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Apple (AAPL) says it will hold a conference call tomorrow at 9AM ET to discuss its plans for its...

Apple (AAPL) says it will hold a conference call tomorrow at 9AM ET to discuss its plans for its massive cash balance, which is likely above $100B at this point. Remarks from Tim Cook about how Apple is discussing uses for its cash, as well as other hints, has led to fervent speculation that a dividend and/or buyback will soon be announced.
Comments (101)
  • The Geoffster
    , contributor
    Comments (4011) | Send Message
     
    Spend it before gov't confiscates it.
    18 Mar 2012, 06:27 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8526) | Send Message
     
    They should simply retire 20% of the outstanding float.

     

    A 20% spike in the price would give you an extra $120 per share.

     

    I wonder how the HFT algos would handle that move?

     

    They could go further and do a Tilson/MSFT maneuver and issue bonds at 2% and retire another 20% of the outstanding float.

     

    http://bit.ly/xKhTW5

     

    :::We recommend that Microsoft take the following steps to greatly enhance shareholder value: 1) issue $40 billion of debt (targeting net debt on the balance sheet of zero); 2) use net proceeds from the debt offering to conduct an aggressive one-time share buyback; 3) use 100% of ongoing domestic free cash flow of $10 billion for payment of common dividends; and 4) borrow against ongoing international free cash flow of $15 billion to buy back shares each year. We estimate this recapitalization would enable the company to repurchase approximately 20% of its shares outstanding.:::

     

    As a long you should be praying for this because it would most likely mean early retirement.
    18 Mar 2012, 09:05 PM Reply Like
  • Tack
    , contributor
    Comments (13230) | Send Message
     
    DVL

     

    Assuming your own moniker represents your investment views, why would any company management in its right mind purchase its own shares at all-time record prices, when they could, alternatively, purchases one or more other companies, whose shares are judged to be undervalued? Or, they could find new projects and/or other investments to make that, likewise, are seen as high return. If they say they can't find any good projects or investments, what does this say about management, and Apple's future value, too?

     

    Purchasing Apple's own shares at present levels makes as much sense as rushing to buy Treasuries, also, at the highest prices in history. Simply put, it doesn't.
    18 Mar 2012, 10:27 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    Because all time high does is NOT the same as overvalued.
    18 Mar 2012, 10:39 PM Reply Like
  • Tack
    , contributor
    Comments (13230) | Send Message
     
    Rh:

     

    That's a matter of opinion because Apple's recent historical growth rates may have little to do with its future growth rate, especially in absence of its principal oracle, Mr. Jobs. He was profoundly a unique individual, I believe, not remotely duplicable by some "appointed" successor, any more than Thomas Edison could have appointed his own.

     

    The very fact that they suddenly think that disgorging capital may be the highest use seems rather indicative that they may be short of vision on its internal use. And, even if the internal-growth route were cloudy, heavens, there must be valuable companies out there, or venture-capital opportunities, rather than merely returning capital to shareholders, in whatever form. To me, if they admit that they can find no better uses of capital for growth, that's a signal that the incredible period of growth we've observed may be over, and, hence, the valuation metrics change substantially.
    18 Mar 2012, 10:52 PM Reply Like
  • rubicon59
    , contributor
    Comments (1382) | Send Message
     
    @Tack Because your comment is clueless
    18 Mar 2012, 11:10 PM Reply Like
  • Tack
    , contributor
    Comments (13230) | Send Message
     
    rub:

     

    Thanks for your enlightened, reasoned and logical rebuttal. I'm sure it helped many better understand Apple.
    18 Mar 2012, 11:11 PM Reply Like
  • scott trader
    , contributor
    Comments (4782) | Send Message
     
    no dividends no share buybacks...just bring some manufacturing back home......sidenote...... ups and fed ex are trying to keep up with the high volume of deliveries of ipads...... longer hours and weekend delivery I hear....
    18 Mar 2012, 11:23 PM Reply Like
  • Snoopy1
    , contributor
    Comments (1110) | Send Message
     
    Seriously Tack, do you know anything about investing?

     

    AAPL can grow rapidly with little capital investment - that is a hallmark of a great company with excellent business economics - one with a very high ROIC and FCF conversion.

     

    Since minimal cash is needed to grow the business, the vast majority of FCF ends up in a bank account, although a small % may be used to fund small technology tuck-in acquisitions. So you think a bank account earning 0.5% provides a good return on capital? Plus a dividend will allow many value and pension investors to buy AAPL shares.

     

    Maybe you need to take a basic investing course before you make any more comments.
    18 Mar 2012, 11:47 PM Reply Like
  • chicagotiger
    , contributor
    Comments (17) | Send Message
     
    nice said... sell the news
    19 Mar 2012, 12:39 AM Reply Like
  • Duelist
    , contributor
    Comments (118) | Send Message
     
    Gee Tack,
    your example of Edison was actually support against your argument. Edison was known for collecting many inventors under himself. He was the master of multiplying his own abilities not just relying on his own inventiveness. Jobs was indeed unique, but likewise, was very good at developing a culture of innovation, creativity, and perfectionistic standards into Apple. There is much that he has done that still remains as part of the fabric and philosophy of Apple. You may want to read up on these guys a little, prior to using them as reasons to question Apple's longevity. Also, historical growth is what is generally accepted as reasonable approximations of a businesses future growth. There are other things to consider, but that is the starting point. I think that PEG ratios are probably of more value than your personal anxiety about the loss of SJ.
    19 Mar 2012, 03:02 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8526) | Send Message
     
    Apple isn't overvalued while Treasuries are in a clear bubble.

     

    Apple stock is safer than Treasuries.

     

    When you back out the cash Apple is trading in a single digit p/e ratio.

     

    Retiring 40% of the public shares is their #1 option and stockholders would be richly rewarded.
    19 Mar 2012, 05:30 AM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    Thats ridiculous Tack. They came up with the Ipod, Iphone, and Ipad without needing $100 billion. If they for whatever reason need all of it then that would be a sign they have a lack of vision and are changing to "throwing money at the problem" of growth instead of their past of innovating.

     

    My statement stands and is not a matter of opinion.
    All time his is not the same as overvalued.
    They can be both at the same time, or only one, or neither.

     

    Now I agree with you that buying Apple now not making sense is a matter of opinion.
    19 Mar 2012, 06:30 AM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Again, it is the tax rate in bringing offshore cash onshore that is the major issue here. If all $60 billion were brought onshore over $20 billion in taxes would be paid.
    19 Mar 2012, 09:53 AM Reply Like
  • Minnesota_Steve
    , contributor
    Comments (139) | Send Message
     
    This should drive some high volume Monday.
    18 Mar 2012, 06:27 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2542) | Send Message
     
    My bet is on a one time, special dividend of about half of the cash. It uses the cash, without having to commit to dividends down the road. A buyback with the stock at an all time high seems like a bad idea, imo.
    18 Mar 2012, 06:34 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (6082) | Send Message
     
    all time high or not, the stock remains cheap.Valuation is what matters not price.
    18 Mar 2012, 07:17 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    SFC , how true,but, the LOW P/E won't stay low unless they use that cash properly !
    18 Mar 2012, 07:19 PM Reply Like
  • gensearch2
    , contributor
    Comments (1461) | Send Message
     
    I would lose respect for Apple if they did a special dividend.
    18 Mar 2012, 07:32 PM Reply Like
  • Snoopy1
    , contributor
    Comments (1110) | Send Message
     
    I doubt a special dividend will be announced.

     

    A $5-10/share dividend combined with the authorization of a substantial share buyback program or a large tender offer at a reasonable premium is far better from a corporate finance perspective.
    18 Mar 2012, 07:37 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2542) | Send Message
     
    The stock is cheap on a P/E basis because the market cap has gotten so large. Its already the biggest company in the world, so its harder to push the stock higher than it would be a smaller company.

     

    Either way, having an extra $100 billion lying around must be an awesome problem to have.
    18 Mar 2012, 11:09 PM Reply Like
  • boussonbob
    , contributor
    Comments (5) | Send Message
     
    I agree with the idea of a one time dividend v. a recurring dividend announcement a la MSFT a number of years ago. Not sure however if I would agree that with a 50% distribution. Rememner that a fairly high proportion of this cash is held overseas. I don't have that ratio, so I would bet that a 20/25% special would be more defesnsible, if a special dividend is the eventual news.
    19 Mar 2012, 03:08 AM Reply Like
  • scott trader
    , contributor
    Comments (4782) | Send Message
     
    I received the big divi from msft years ago i was grateful at the time but I got out anyway when Gates stepped aside... shoot who wouldnt with 57 billion or whatever ...could have put someone alot more creative than Balmer in the seat though.....what keeps me in aaple is the uncontestable refined products..........
    19 Mar 2012, 03:13 AM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    Very true Mike. Its funny that in the absence of anything truly bad, AAPL investors argue about this "problem". What to do with an extra $100b laying around.
    What I find even more funny is that whatever is done it will cause some to sell the stock div, buyback, or nothing, because somehow AAPL is ruined.
    19 Mar 2012, 06:31 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    gees. I hope there not stupid enough to pay a dividend special or not. They have a chance to do a DIS like move and buy a true future. The fads come an go historically and when DIS bought ESPN never in their wildest dreams did they realize it was the companies future !
    They had ABC an movies an parks,but, ESPN is their earnings driver.

     

    AAPL needs to grab content ! Plain an simple. Crap, buy DIS !
    18 Mar 2012, 06:39 PM Reply Like
  • dab3z
    , contributor
    Comments (312) | Send Message
     
    Short of buying Disney, I agree with what you're saying. A special one-time dividend is the last thing I want. Investors buying in flocks only to dump it after the dividend! No thanks.
    18 Mar 2012, 06:49 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    DaLatin

     

    You and I are thinking a like on this one. Apple is currently a content distribution company. They should consider leveraging that role and preparing for the future when their current business model flattens out.

     

    I would also recommend they donate some money to the ultimate Burning Man party in the desert.
    18 Mar 2012, 06:50 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    dab, I used DIS as an example. But, it would work and they could spinoff the theme parks an other non content holdings. Their betting future on cloud t/v tyig it all together. So, DIS has outstanding content/ FOOTBALL an the rest
    18 Mar 2012, 07:05 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (6082) | Send Message
     
    AAPL needs to be careful getting into the content realm. Consumers will start balking at the idea of them controlling everything. Creating technology is a whole lot different than content.
    18 Mar 2012, 07:23 PM Reply Like
  • gensearch2
    , contributor
    Comments (1461) | Send Message
     
    I thought Apple made it pretty clear they weren't into buying content. Cook said they're a h/w company period.

     

    Apple has more than enough cash to do a large acquisition AND pay a dividend.
    18 Mar 2012, 07:35 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    If they stay a hardware company they will surly decline as time goes on !

     

    If I hear that tomorrow or anyhting like it I sell my 350 shares an go find the next winner.
    18 Mar 2012, 07:55 PM Reply Like
  • gensearch2
    , contributor
    Comments (1461) | Send Message
     
    This is a simple conference call on what they're going to do with $100B in cash plus what they accrue. They aren't going to be giving a strategic overview.

     

    Cook already said they're a h/w company, so you might as well sell first thing in the morning. I don't think Tim will notice.

     

    I think it's safe to say things they aren't going to say...

     

    1. We decided to sit on the cash ... [They're on a Sunday scheduling a conference call for 1/2 hour before the market opens to say we decided to do nothing [or decide at a later date]
    2. We're buying xyz or abc .... they don't announce acquisitions, they do them and let you know after the fact.
    3. Special dividend ... the only time a special dividend makes sense is if you're the target of a hostile takeover and you're unloading your cash to be less attractive. I don't think anyone can afford to buy the entire company.
    18 Mar 2012, 08:23 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8526) | Send Message
     
    As long as the Appleā„¢ name is on it people won't care one bit.
    18 Mar 2012, 09:15 PM Reply Like
  • Duelist
    , contributor
    Comments (118) | Send Message
     
    I really don't like the idea of Apple reaching too far outside of their areas of expertise. Their bread and butter is mobile computing right now, and I'd hate for Cook and the team to be distracted running a theme park and producing movies. I will be looking to sell if they start wanting to do everything; I can buy GE for that.
    19 Mar 2012, 03:09 AM Reply Like
  • sawchain
    , contributor
    Comments (130) | Send Message
     
    If it *is* a dividend, it is truly the end of an era. The board will have decided to manage Apple's decline rather than invest in its future.
    18 Mar 2012, 07:08 PM Reply Like
  • Snoopy1
    , contributor
    Comments (1110) | Send Message
     
    Dumbest comment of the day.

     

    The company's product future is entirely separate from it's dividend policy. Even with giving a $10/share dividend, the company will grow cash by $30 billion per year, on top of it's current $100+ Bn cash hoard, so AAPL can acquire pretty much any content or tech company it wants, if that is even necessary.

     

    Get a clue before you make any other comments.

     

    Given the odd timing of announcing on Sunday night a pre-market Monday conference call, it could possibly entail buying a big company as deals often get done over the weekend.
    18 Mar 2012, 07:15 PM Reply Like
  • KISS_investor
    , contributor
    Comments (335) | Send Message
     
    I wish there was a dislike button..

     

    Whatever they announce, its about time that the cash sitting there gets put to use.. how is putting cash into a pile helping growth??

     

    Using it to buy programming is a very low return proposition C

     

    Content is fickle, and EXCLUSIVE programming is no longer viable..the cable guys learned that or we'd all be watching the same 2 cable channels..

     

    I have been hoping for a while for just a modest dividend/stock split/buyback to increase the number of accounts that can buy the shares both large and small. A buyback is a great signal if we get that tomorrow..
    18 Mar 2012, 07:21 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (6082) | Send Message
     
    bogus... What has AAPL or just about any company ever gained from buying the future?
    18 Mar 2012, 07:25 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Kiss, right. Ask DIS where they would have been during the mega recession had not all those hurting people hadn't sat glued to there viewing devices or t/vs an watch all of ESPNs sports ?! All while collecting soaring advertising revenues?
    18 Mar 2012, 07:28 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Distribution of content is a better use than creation of content. Lower risk and more secure cash flow streams.

     

    The problem with a dividend is that $60 billion sits offshore and if brought onshore is subject to a 35% tax.

     

    Bringing that cash pile onshore is a misallocation of capital.
    18 Mar 2012, 07:37 PM Reply Like
  • gensearch2
    , contributor
    Comments (1461) | Send Message
     
    Plus ... Disney has a gross margin on the order of 20% ...

     

    Would Apple buy a company with a gross margin of pffft 20%?
    18 Mar 2012, 08:28 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8526) | Send Message
     
    Diversification.
    18 Mar 2012, 09:17 PM Reply Like
  • Duelist
    , contributor
    Comments (118) | Send Message
     
    Perhaps the idea of a small "token" dividend would be part of the plan. It would be helpful to the funds, some who have broken rules in order to participate in AAPL's growth. This would not lose as much to taxes. They are going to do something, though. What is your favorite theory D.U.?
    19 Mar 2012, 03:16 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    ESPN is DIS's bread winner. GOOG is desperate trying to buy something or anything as search is morphing into something they can't control. AAPLs cash won't just be a dividend !

     

    We all will see soon,so, they won't repatriate their mega holdings overseas,so, lets see if I should be running AAPL.
    19 Mar 2012, 07:56 AM Reply Like
  • jjohnson1
    , contributor
    Comments (3) | Send Message
     
    Announcing a surprise conference call before the market opens on Monday with the CEO and CFO means this is going to be a big deal. Apple will open big tomorrow and no longer be a value stock.
    18 Mar 2012, 07:12 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (16120) | Send Message
     
    My crystal ball says.....massive share repurchase over the next 18-36 months.

     

    My crystal ball has been cracked for awhile so lets see if it is working again.

     

    Maybe they can send me a check also....but just me, nobody else. :)))
    18 Mar 2012, 07:14 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Gees, I hope they do the right thing. I am super happy with the years of superior gains,but, if they ruin things for a short term spike i'll take it an run as the Roth IRA cares not about tax.

     

    I with help of you an others will find something else !
    18 Mar 2012, 07:17 PM Reply Like
  • pipilo_aumak@yahoo.com
    , contributor
    Comments (19) | Send Message
     
    Share Buyback and a one time dividend payout..
    18 Mar 2012, 07:19 PM Reply Like
  • Joe Dirnfeld
    , contributor
    Comments (1128) | Send Message
     
    Buy 100 billion dollars worth of gold. It's a cushion, we all need a cushion.
    18 Mar 2012, 07:19 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8526) | Send Message
     
    With the coming inflation due to astronomical money printing this isn't a bad idea actually.

     

    Of course, they wouldn't announce it before securing the bullion.

     

    The gold will be around a LOT longer than iTunes.
    18 Mar 2012, 09:19 PM Reply Like
  • kpaxton
    , contributor
    Comments (4) | Send Message
     
    Apple will continue to generate cash flow. A one-time dividend will not signal anything except that Apple will continue to generate sufficient cash flow to perhaps accomplish a buyout on the scale of DIS. While I enjoy the capital gain asociated with Apple's rise, ultimately all shareholders should anticipate a future point in time where the stock pays you as an owner of the business. Tim Cook gets paid.
    18 Mar 2012, 07:20 PM Reply Like
  • runlong
    , contributor
    Comments (93) | Send Message
     
    Sounds like they could lower the price of there Stuff...and sell even more.......
    18 Mar 2012, 07:21 PM Reply Like
  • jjohnson1
    , contributor
    Comments (3) | Send Message
     
    2.5% recurring dividend
    18 Mar 2012, 07:33 PM Reply Like
  • Ted Bear
    , contributor
    Comments (597) | Send Message
     
    JJ...that sounds about reasonbable......it will be conservative if it is a regualr dividend.

     

    This company prides itself on innovation. I can't try to predict, but something 'creative' sounds appropriate.

     

    Splitting certain divisions. Putting $50 Bil into a trust to honor Steve J. Funding a new R&D effort named after Jobs...i just don't see it being mundane, nor necessarily a huge booster for a stock which is already flying.
    18 Mar 2012, 07:38 PM Reply Like
  • praveenbolla
    , contributor
    Comments (13) | Send Message
     
    Guess AAPL stock will have its Good Time from Tomorrow, whatever they announce. AAPL stock will Surge around 10-15% Tomorrow.
    18 Mar 2012, 07:57 PM Reply Like
  • Snoopy1
    , contributor
    Comments (1110) | Send Message
     
    10-15%? Not likely, but I like your optimism! :-)

     

    Too bad for the monthly call option owners that this announcement was made just after expiration. Ouch!
    18 Mar 2012, 08:01 PM Reply Like
  • praveenbolla
    , contributor
    Comments (13) | Send Message
     
    Probably the Weekly Call holders will have a good chance with the Huge profits they make tomorrow.!!!
    18 Mar 2012, 08:04 PM Reply Like
  • chicagotiger
    , contributor
    Comments (17) | Send Message
     
    and if you don't think that was by design....
    19 Mar 2012, 12:53 AM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1090) | Send Message
     
    Interesting timing on an announcement, just after the iPad release. I'd bet on a dividend payable to shareholders of record at the end of this quarter. If that's the case and iPad sales were strong, the stock might be trading at $700 by this time next week.
    18 Mar 2012, 08:12 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    They are going to announce that Apple will be buying Microsoft.
    18 Mar 2012, 08:12 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    MSFT.......... Then I call you 14 footMoose.
    pssst Incluye NOK... por favor
    18 Mar 2012, 08:14 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5417) | Send Message
     
    They may be ready to discuss their bid for tv rights to Premier League Soccer. Not sure if they are still looking for this content for iTV or not.
    Just a thought.
    Being long AAPL, I am hoping for a dividend announcement. Looks like $600 will be eclipsed for more than a few minutes:)
    18 Mar 2012, 08:18 PM Reply Like
  • praveenbolla
    , contributor
    Comments (13) | Send Message
     
    Who are going to sell AAPL ? Huh...
    18 Mar 2012, 08:24 PM Reply Like
  • Snoopy1
    , contributor
    Comments (1110) | Send Message
     
    I'm long AAPL but am a little nervous - maybe AAPL feels the need to come out with cash allocation news if iPad 3 sales were lackluster.
    18 Mar 2012, 08:31 PM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1090) | Send Message
     
    That's a thought, but if it's a regular dividend they need to announce it before the end of the quarter payable to shareholders of record on March 31st. Considering that they sold out on their first wave of pre-orders and there was a line at every Apple store in the world, I'd seriously doubt that sales were lackluster.
    18 Mar 2012, 08:38 PM Reply Like
  • ncaruana
    , contributor
    Comments (2) | Send Message
     
    I agree with you, while all signs point to good sales as far as the preorders go, I found something interesting at best buy. I preordered mine after the announcement through apple, and got it friday, but my wife decided she wanted one. I was able to get on best buys website and order one for store pickup yesterday (saturday) at around 1pm. Most stores in my area (D.C.) had most models in stock. As of today when I checked that is no longer the case, while there was a few of certain models available still, the majority were sold out. When I picked up the order today, the employee said that there was nowhere near the turn out for them as there was for iPad 2 and that the stock they had yesterday was left over from launch and not new shipments. Who knows if she knows what she is talking about, but found that interesting. Maybe everyone learned from the fiasco of trying to get them at best buy last year, (I preordered through BB day 1 and it took a month to get it) or maybe apple has beefed up shipments this time around.
    18 Mar 2012, 09:00 PM Reply Like
  • dab3z
    , contributor
    Comments (312) | Send Message
     
    My guess is that has more to do with the number of people who ordered through Apple online. No hassle involved. Although I'm sure many would have gone to other outlets had they known they would have to wait 2-3 weeks after launch for it to arrive.
    18 Mar 2012, 09:14 PM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1090) | Send Message
     
    This is true. There were no pre-orders on prior iPads. Apple has also beefed up their logistics to meet in-store demand. One Apple store in Nashville received 20,000 iPads for in-store sales according to one of the salespeople, who probably said something he wasn't supposed to.
    18 Mar 2012, 10:22 PM Reply Like
  • Terry330
    , contributor
    Comments (867) | Send Message
     
    One billion to President Obama's reelection, top priority. Republicans plan to severely limit all technology/science.
    18 Mar 2012, 08:47 PM Reply Like
  • Juangatoman8
    , contributor
    Comments (18) | Send Message
     
    I don't know what the Apple board will do, nor do I know what they should do. I know they should not re-patriate $65 Billion held in offshore accounts and pay a 35% tax hit on those monies.
    This illustrates, to me at least. the utter stupidity of IRS regulations that penalize American companies severely for bringing money back to the USA where it could be put to use productively for the benefit of all stake holders in the Company, ultimately including the USG. .But then, this Administration collectively has the economic acumen of the average first grade kid, so I expect that no matter what Apple does, the tax code limits and thus prohibits the best use of the funds. And as share holders, folks, that's our money.
    18 Mar 2012, 09:13 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8526) | Send Message
     
    In an election year it would be easy for Tim Cook to negotiate with the Obama administration a one time tax holiday for Apple to repatriate its cash @ ~4% tax rate.

     

    Part of the deal could be a donation to the Obama SuperPAC of say $200 million dollars (chump change to the Kings of Cupertino).

     

    Obama could give a speech at the White House with Cook at his side promoting the $40 billion "injection" into the American economy to help the recovery.

     

    Win-win.
    18 Mar 2012, 09:31 PM Reply Like
  • scott trader
    , contributor
    Comments (4782) | Send Message
     
    buy amt and charge everyone a premium for transmission....
    18 Mar 2012, 09:38 PM Reply Like
  • realornot
    , contributor
    Comments (1281) | Send Message
     
    Dear Tim Cook:

     

    Do you need my trading acct number to deposit some of your unused cash? I am ready whenever you are. This is how you can cheer on your fans base.

     

    :)

     

    Ron
    18 Mar 2012, 10:15 PM Reply Like
  • znmeb
    , contributor
    Comments (8) | Send Message
     
    I'm guessing it will be three and possibly four things:

     

    1. A dividend. Intel pays dividends, IBM does, Microsoft does and so should Apple.
    2. Stock buybacks.
    3. A Steve Jobs memorial foundation for some charitable purpose - education, mentoring entrepreneurs, something like that.

     

    The fourth thing might be a donation to some human rights organization. They've taken a lot of heat on the Foxconn issues and I think they'll put some money into some organization that's working in this area and is "politically correct."
    18 Mar 2012, 10:16 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    At this point I want them to pay a dividend not for the dividend itself but to knock a few pegs off of all the self righteous Apple is god and we can't desecrate Saint Jobs' image anti dividend talk.
    18 Mar 2012, 10:21 PM Reply Like
  • Dugmann
    , contributor
    Comments (7) | Send Message
     
    Apple has to target throwing of nearly $50B/year.
    1) 2% Dividend
    2) Stock buyback
    I actually hope they don't pay back too much in dividend (tax reasons), I would rather have the stock buyback.
    18 Mar 2012, 10:26 PM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1090) | Send Message
     
    Pre-market trading should be very interesting. Will anyone be selling?
    18 Mar 2012, 10:29 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    If they announce a dividend there should be dozens of SA members who have threatened to sell.
    18 Mar 2012, 10:40 PM Reply Like
  • praveenbolla
    , contributor
    Comments (13) | Send Message
     
    SA Members ?
    18 Mar 2012, 11:57 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    seeking alpha
    19 Mar 2012, 06:33 AM Reply Like
  • neversweat
    , contributor
    Comments (67) | Send Message
     
    I'm burning all the money I have now to make room for Monday's load.
    18 Mar 2012, 10:43 PM Reply Like
  • Riverrun
    , contributor
    Comments (226) | Send Message
     
    Prediction, no make it fact. Tomorrow, All "I own none of the stock mentioned" in this blogger-shorter hit job
    will vanish off SA for at least 30 minutes.
    18 Mar 2012, 11:45 PM Reply Like
  • praveenbolla
    , contributor
    Comments (13) | Send Message
     
    SA in the sense ?
    18 Mar 2012, 11:57 PM Reply Like
  • ConservativeOutperformer
    , contributor
    Comments (561) | Send Message
     
    If they do a buyback serious investors should be outraged. They've had excess cash accumulating since around $200/share. A buyback after a huge move YTD, an 80% move in 1 year, and up a ton since $25B in cash.......... That would be comical.

     

    Even with neophytes making the financial decisions the business is terrific. The valuation looks cheap, but it rests on a monster earnings number 5 years out. Options are going nuts, that's probably the best way to move in and out here.

     

    Good luck!
    19 Mar 2012, 12:21 AM Reply Like
  • ChiefEngineer
    , contributor
    Comments (148) | Send Message
     
    My prediction will be a "performance" dividend. Future dividends will be stated as related to performance, ratio of cash to stock price, cash flow, valuations, etc. Throw the dogs a bone and keep them scratching at the door. But never, never cave into pressure form analcysts and fund managers.
    19 Mar 2012, 12:49 AM Reply Like
  • streetflame
    , contributor
    Comments (128) | Send Message
     
    My prediction is it will be a big announcement.

     

    4% special dividend
    Regular dividend of 2%
    Authorize a small buyback, and suggest that they will be selective on buyback price

     

    AAPL trades up big tomorrow.
    19 Mar 2012, 12:59 AM Reply Like
  • Prophet81
    , contributor
    Comments (33) | Send Message
     
    Everyone, please take a deep breath. Whatever happens tomorrow, I'm sure Apple is going to make the best strategic decision for the benefit of the company, and all the investors are going to be left feeling very satisfied.
    19 Mar 2012, 01:44 AM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    NO! Now is the time for mass hysteria. Even though Apple has proven that they know how to manage a business incredibly well it is up to the investor to arm chair quarterbacking and accusing each other of not knowing how to invest.
    19 Mar 2012, 06:35 AM Reply Like
  • scow1
    , contributor
    Comments (2) | Send Message
     
    Just my opinion: I believe stock price would fall in the near term if they announced a divvy..also insider selling would take place. Again this is just one daytraders opinion. Xlnt short candidate now.
    19 Mar 2012, 02:06 AM Reply Like
  • harryjack
    , contributor
    Comments (482) | Send Message
     
    Cablevision CVC would only take 6B based on 50% premium. What else could they buy.
    19 Mar 2012, 03:08 AM Reply Like
  • Jrventure
    , contributor
    Comment (1) | Send Message
     
    Apple might by out VHC, who own patents that Apple are allegedly violating and are being sued. Apple may just buy VHC. For 40-50 dollars. VHC IS ABOUT $24 right now. They have the technology all 4g systems need. Microsoft just settled and paid VHC 200 million for a licensing agreement after VHC sued them. Apple is ready to use their cash and buy the. VHC gaining up!
    19 Mar 2012, 03:26 AM Reply Like
  • trudem1919
    , contributor
    Comments (27) | Send Message
     
    A 3 to 1 stock split would be nice.
    19 Mar 2012, 04:13 AM Reply Like
  • miamivice3564
    , contributor
    Comment (1) | Send Message
     
    Here is my view on Apple's big announcement tomorrow, right now Apple is sitting on $100B of excess cash. My view is that Apple will not announce a dividend but is acquiring a company now which companies would Apple be looking at right well my best guess is either Twitter or Valve Software. Not to get to detailed with reasoning behind it but the reasons why it makes sense for Apple to purchase Valve is for 1 thing it is a absolute cash cow, secondly what better way to incorporate Apple tv and dominate the living room and the gaming world with apple teaming up with valve and entering the gaming space history has proven-ed to us Apple is willing to take big risks i.e ITunes and dominate the music world this would be the next logical step. All in all i do expect a big announcement tomorrow and if Apple doesn't acquire Value or Twitter their sure as hell thinking about or might purchase either one of them or both in the near future.
    19 Mar 2012, 04:19 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Back to my constant post. APPL buys the USA from the Fed an takes over the debt.

     

    We are all appleites an AAPL runs all the country an schools. Our children become high tech math monsters an were reborn as a country.

     

    Tic tic tic the medeting is getting closer. Who will have nailed the gig ?!
    19 Mar 2012, 04:40 AM Reply Like
  • Grandman
    , contributor
    Comment (1) | Send Message
     
    I think a stock split (5:1) plus a regular dividend (2-3 %) is reasonable. The price of the stock is too expensive, and definitely the split will be a good sign. The dividend parctically will have no impact on the price action.
    19 Mar 2012, 06:30 AM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1090) | Send Message
     
    Given the timing of the announcement less than 2 weeks from the end of the quarter, it'll almost certainly be a dividend payable to shareholders of record on March 31. They've known they were going to do this for at least a month and have sat on the information while the stock ran up in value. I doubt a stock buyback as they could've bought the shares back some time ago at cheaper prices. They've probably been buying back shares on the open market for the last 2 months. As an investor, I'm delighted w/ the stock's performance, but the rich have gotten richer!
    19 Mar 2012, 07:00 AM Reply Like
  • dab3z
    , contributor
    Comments (312) | Send Message
     
    A wise man. I concur!
    19 Mar 2012, 07:15 AM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1090) | Send Message
     
    So it's a dividend and a stock repurchase and money for strategic acquisitions. Repurchase doesn't start until next year and the dividend isn't payable until Q4. Hmmmm.
    19 Mar 2012, 08:40 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Yes, but, no mention to the 2/3s of that 99 billion which is overseas. So, their not bringing it back at 35%.

     

    So, lets see what they buy. They will buy someting.
    19 Mar 2012, 08:49 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Apple is going to buy Foxconn and send Americans over to china to solve the unemployment problem here.
    19 Mar 2012, 08:53 AM Reply Like
  • ConservativeOutperformer
    , contributor
    Comments (561) | Send Message
     
    I know lots of Americans eager to work for $3 a day........
    19 Mar 2012, 10:32 AM Reply Like
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