They are following RIMM and NOK right into the grave. Bascially RIMM and NOK were smartphone leaders who built up a TON of cash on their balance sheets. They then gave up their lead in smartphone as the competitors caught up in technology and design. They then start increasing the dividends and start buy backs to support the share price even with falling sales and revenue. And when they can't regain their market and their growth rates slow they slowly bleed money until they have to go to the debt markets. Also when ever people talk about about they say hey $150 of the stock price is cash which warrants the valuation; if you spend all the cash you can basically strip that from the valuation of the company if sales don't increase.
If I was an Apple long I want that money being put into R&D to develop new products not upgrades. And I would be buying chip makers to bring down production costs and expand margins. What they are doing essentially is giving up the cash and saying we can make it back. In the case of RIMM and NOK they NEVER did and had no options in the end except to continually hit the debt market. Also they were prepaying vendors to get preferential pricing on components as they deplete their cash into 2015 they might not be able to do which might further erode margins. It's a never ending spiral of DEATH for AAPL. I'm guessing sub $200 by the end of 2014.
Isn't it time for you to close your short position for a small loss and move on to the next stock to gamble on? Your posts on this message board have no influence on the share price so you might as well stop with the stupid nonsense.
Apple doesn't skimp on spending. They are building a several billion dollar spaceship, after all. They simply have no need for more than $145 billion and so will start returning future earnings to shareholders. The money they are returning over the next three years will be more than offset but the earnings that will come in during that timespan.
And clowns want to borrow and why?
to do pole dance in front of fraud street banksters
usa 99% are doomed...
bankster financial terrorists force high treason rulers and corporation to be in their pockets for fraud loot from usa 995 pensions funds
Sentiment: Strong Sell
Let's just say this. They have grow REV and margins and as I indicated the share buy back and dividends are not the way to do this. So what is the way? Use to cash to expand REV and Margins.....case in point IBM for the last decade. Let's just say they use 15 Billion to buy Sandisk; this instantly adds to their bottom line and expands their margins what they are doing now is simply buying shares at a elevated price if sales don't improve. DON'T YOU LONGS AGREE???
Biggest buyback of shares in the history of the stock market. They've drawn a line in the sand at $400, and just like you can't fight the Fed you're don't want to fight an insider with $50B set aside to buy shares of AAPL. Do you really think they're going to let the price drop much lower than it's already dropped?
Sentiment: Strong Buy