On top of that, Cook is sitting on a pile of cash which grows by about $10b a quarter!
It is a buy at $400 if not a steal in mho.
As the buyback is spread over the next three years, essentially Apple is keeping their current pile of cash and will be returning all future earnings through buybacks and the dividend.
No, it does not. First, the cash itself was earning a return. Second, 60B will be spent over the next 2 years. Third, the firm will be issuing new shares to cover its option incentive plan. I bet you that after 2 years the share count will be lower by less than 50 million shares.
They have a separate buyback of $1 billion/year to compensate for employee shares.
I doubt that they will wait very long on the buyback - the first $20 billion is probably already waiting at GS to buy back shares tomorrow.
Plus the money that they are losing by doing the buyback is less than the dividends that they no longer have to pay due to the purchased shares.
Sentiment: Strong Buy
Cash earning a return? What 0.22% as in 2 year T-bill?
Don't know where you get the 50 million shares, except on stock grants or if share price went up near $1000 each again.
Regardless, the $60b buyback is better than no buyback right? Einhorn thinks it was a good move.
As I said the market doesn't care about the buy back. Just a lame attempt to get the share price up. Big deal they are buying back a few shares while they are sitting on SO MUCH CASH it hardly looks like a vote of confidence.