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Apple Inc. Message Board

  • divaiinv divaiinv Jan 15, 2013 11:24 PM Flag

    Crazy numbers

    Lets look at this for a moment... Outside of all the bashers Outside of all the talking heads.... Just as a value investor...Lets look at the facts...

    .150 Billion in cash (after this Qtr) Net Taxes (100 million overseas at at 35% tax rate to bring it back) 65 Billion in cash plus 50 that they have state side= 115 billion net after cash.

    50 Billion in free cash flow......(After taxes) Let's take the worse case it goes to 25 billion a year... Haven't heard anyone in there right mind say Apple is going to sell half what it sold last year or make only $25 billion) Most estimates are in the 40 to 50 billion

    940 million shares outstanding...

    So Summary

    They can buyback 125,000,000 shares at 600 (Cost = 75,000,000,000)a share Leaving them with 815,000,000 shares outstanding ... So now they have 40 Billion in cash

    We all agree that they can do 25 billion in cash a year... No one is fighting that... I assume that they will keep 5 billion a year just to add to their 40 billion a year ...

    That is a 2.6% yield at $600 a share.... at current levels it is a 3.1% yield

    This is assuming 50% reduction in profit........... Assuming NO Growth No China.. and a 50% reduction in profit and Apple will still have close to 20% of its market value in cash.........

    Please advise where my numbers are wrong......

 
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