quote from call:
Some note on investor returns
by Matthew Lynley
Add a Comment
Apple has already returned $10 billion. "We continue to generate cash in excess of our needs... we remain firmly committed to our objective of attractive returns to shareholders."
Apple will return $100 billion by the end of 2015, most of it coming in the form of share repurchases. "We concluded that investing in Apple was the best."
so $ 450 ~ 460 is a new target to short ? What a waste of $ 50 bil. !! Anyway who cares about billions nowadays. Lots of billionaires save pennies not to be common people, the millionaires, right ? :)
Pretty soon you might find a burger cost a couple of hundred bucks to you. Thanks to Benny, the printer, the unprecedented robber against savers & pensioners. :(
The buyback is actually $100b over 3 years. That's around $3b a month or $150m a day, every day. At today's prices that means 350,000 shares will be retired every single day for the next 3 years. That kind of buying pressure will be huge. HFT will feed off of it and drive the price up in a hurry.
I would imagine Apple will spend a good chunk of the money early to take advantage of these low prices. By law they can buy 25% of the recent average. In other words, over 4 million shares a day.
How does a post this wrong get 5 thumbs up? Are Apple longs really so stupid they don't even know what Apple is doing? The buyback is 60 billion the other 40 is for the dividend. Of that 60 they already spent 5, leaving 55 billion over 32 months or roughly 1.7 billion a month.
That seems like a lot until you realize many growth funds will have to sell Apple, if not now, then after one of the next two quarters when revenues are either flat or declining.
The ONLY thing that matters for Apple is whether the "new products" Cook is alleging will come out in 2014 actually materialize. If not this buyback will turn out to be a waste of money since the shares will drop anyway and could have been picked up cheaper.