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Apple Inc. Message Board

  • aiwal1 aiwal1 Mar 7, 2013 2:41 AM Flag

    $1000 per Share MANAGE. BUYOUT of AAPL is Doable

    $150 Billion Cash or Cash Equivalents on the books by end of March, or $159 per share, and no debt.
    $55 billion of pre-tax pos. cash-flow, can easily cover $32 billion of interest on $850 of Apple Bonds paying 4% to be issued for each of 940 million AAPL shares. Buying up all Apple shares cancells out the $10 billion per year ($14 billion pre-tax cost) dividend, so only costs Apple about $18 billion more per year. The company would be owned clear and free by an acquiror, and still have over $20 billion a year pre-tax cash flow, even after paying the interest.

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    • Buy out will come. Samsung will buy out AAPL for $100 per share in 5 years.

      Watch and Learn

    • Obviously, the difference between a dividend and bond interest is that, dividends can be eliminated any time while bond interest payments are mandatory.

      There is no guarantee the $55 billion of pre-tax cash flow can be maintained for the next 25 years. You don't know. I don't know. I bet $20 that Tim Cook himself does not as well. Why am I so sure?

      Because if Cook is 100% sure about the earnings forever, he will have used the $137 billion cash to buy back 1/3 of the outstanding shares already. There is no risk whatsoever. Why hasn't he done that? Did he not know the simple math that you & I know. I don't think so.

 
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