What does the price go to if there is truth to the latest rumor of the one time dividend.
I read one of the explanation for the spike up today was that there was a rumor of a one time dividend of $30 per share. I realize this rumor is probably not true, but considering Apple could easily afford it, it is of course very possible. If this were too happen anybody got predictions of pps? Here's mine, I think pps goes well over $650 possibly approaching $800 by end of April. Here's why, with a special dividend of $30 and a regular dividend of $10 @$650 you get a guaranteed 6%+ on your money this year before any stock appreciation, at $800 you still get 5% on your money before any stock appreciation.
tied up on what. almost all of Apple cash both here and abroad is tied up in low interest notes and bonds. they could have access to almost the full value of their cash it is not tied up in long term investments. secondly, they don't need their cash to be liquid they could borrow all the money they need and more with almost no interest (that what most companies do anyway).
$100? Why? No way, not $100. If apple had huge short interest then yeah but they don't.
We'd probably get a $30 pop over a 2 day period, like $20 the first day and $10 the next but its all a guessing game cause a 1 time div of $30 Billion is a drain on assets which is not a longer term positive so the stock will only coke back down and even lower since now they'll have $30 billion less.
So then the spike will be by whatever amount of new demand is created by funds who want that free $30 per share. But given most funds know the pps will only come back down I doubt they'll be buying any shares after the stock already spikes by $30 which is why and how I came up with a $30 spike.
That said, cook has a CFO and he should know this so to drive the pps higher and to keep it there you have to do more in conjunction with the special div. I would raise the regular div to 3.5% per year (something you can suspend or lower if things slow down) and this will bring in lots of funds looking for a growth stock which also offers a nice rate currently competitor to a t-bill. That's quite a few billion in new money which would make its way into apple.
Finally, to smooth things out on those choppy days or when shorts start acting up I'd announce an additional $30 billion 3 year purchase plan on top of the current $10 Billion one. That gives you a lot of dry powder to put a hard floor under the current pps and the funds will drive the pps up after that.
Now that's a good plan although I'd prefer to just see a straight $50-$75 Billion buyback plan over the next 3 years. But they won't do that cause they wanna get the hounds off their backs now so they can focus and the best thing for those greedy dogs is cash now so they will throw them at least a $20 Billion bone although $30 is probable.