TENDER at $920 / Sh., Apple Board or Acquirer can do
$920/sh. Buying up All Apple Shares makes alot of Sense for Apple Management...etc.
Apple's shares are quite depressed by normal Corp. Financial Analysis. The company can be profitably acquired or taken private at 2 - 3 times its present price. Apple stock is presently at $459 valued at $440 billion. It has $140 Bn. Cash Equivalents on its Balance sheet. That plus floating a $300 Billion 4% BOND to SWAP FOR EQUITY, equals the whole company's present depressed market capitalization. Interest on a $300 billion Bon would cost $12 billion/yr., paid for by ELMINATING the $10.6 Bn. DIVIDEND (the Div. costs Apple pre-tax about $14 billion). That leaves $2 billion pre-tax earnings, plus another $40 billion pre-tax earnings or cash-flow, after buying up all Apple's Shares at $460. Obviously with $42 billion remaining pre-tax earnings not even needed to buy all of Apple's stock at today's prices, the company's worth tons more, at least 2X more (or $920 per share) on a cash-flow basis, and at today's low bond interest rates. But a TENDER OFFER for all of Apple at 2X present price, or $920 per share, swapping say $1000 Apple Bonds (to be issued) for each share of stock, would still result in over $20 billion positive cash-flow per year from operations left, after all tax deductible bond interest payments. Apple management and Board should have offered stockholder a Bond Swap instead of a Dividend, and paid the Government a lot less in taxes, and gone private.
very big quantity of money...... TWOULD be a hoot if they bought us out at that price, i'd be happy with the gain, but unhappy to not own any more... but money walks more strongly then talking, already..