Yeah A Buy-Back sounds good to a small degree! It's just $200 Billion sounds so extreme. Maybe a smaller amount. They need to make some strategic acquisitions to add to the bottom line. Modify the business model to accommodate new sources of revenue. There's some good fits out there and I'm surprised that they haven't come to terms with some sort of acquisitions already.
You're pretty funny scropos. Other then MSFT and XOM. I don't know of any other company in the world that has that much cash laying around. If you read the income statement, balance sheet and cash flow. What else needs to be said? Products in the pipeline will keep sales and cash flooding in. AAPL is going from a growth stock to a value play. Institutional investors and fund managers react and adjust accordingly.
They sell at $420 to $480 and move in or on. As a value Investor, I like the problem AAPL is having right now. Wondering what to do with the $140 Billion? Or wondering what to to with all those Billions coming in every month. It takes time and money to build the best products on the planet. Be patient and load up. This is a blessing at current levels. Anyone who would argue the fundamentals of AAPL can't read or is just plain stupid. You can't fix stupid.
Good post, Rickrackattack. However, by buying back shares, you're *saving* money in the long run, as the rate of the dividend the company has to pay out is *greater* than the rate of the loan. In other words, by taking on debt, Apple will save money over the duration of the loan. Why pay the current dividend of about 2.5%, when you can buy those shares back and only pay 1-1.5% interest? Are you catching my drift?
While I completely agree with you that Apple will be fine (and is fine), I don't see the harm in buying back stock when the p/e is so ridiculously low, and right before the launch of quite a few new products and refreshes. They save $2.65 per share (and possibly more, if they plan on raising the dividend), per quarter, and that will pay for the loan interest, as loans are incredibly low now, and Apple would be looking at about a 1.5% apr on a loan so large.
50 billion of their own money and 150 billion borrowed. That leaves you *plenty* of money to run the company, ample cash for acquisitions and that's not even counting the 10-12 billion they're making every quarter.