I can not remember EVER there being a profitable (or unprofitable) company of Apple's size in the marketplace where the shares traded at a level where cash was 40% of the market cap (and no debt - I exclude the recent bond offering as I did not include the proceeds of that debt offering in the company's cash balances). And this of course does not include the $30 billion (another 10% of market cap) that Apple will add in free cash flow to its balance sheet in the next twelve months). Remarkable.
The quarter will be over tomorrow and everyone who sold AAPL so it is not a big holding will be looking to get back in to take advantage of the announcements that may come during the next quarter and so will individual investors who like the idea of a safe 3% dividend.
The market doesn't trust TC. Until he's gone, nothing can help AAPL. People are sick with them avoiding taxes with bogus companies and the endless litigation against Samsung. The potentialy 1 bil they might get from them already cost AAPL about 100 bil in market share. Seems TC is a bean counter with litigation his main interest.
Just my opinion
Well it depends on what you think is really cash ! Is untaxed money off shore all there and available, well no then how much. OK how quickly are they burning cash to keep their infrastructure afloat. How about 5 bill for a new office. But most importantly what about the 60 billion stock buy back and the return of divys. This is a 3 card monte game it there ever was one. And you go on convincing your self that 40% of cap is cash. If you believe that I got a bridge to sell you !
Good! So let Apple use ONLY A PORTION of the annual profits to DOUBLE THE CURRENT DIVIDEND! That would make the stock quite attractive on the open market. And since Apple management apparently have no idea how to spend or invest any of OUR tremendous cash hoard, the cash hoard will continue to grow, albeit a little slower. But since they don't need nor want to spend the cash hoard anyway, WHAT'S THE F|_|CKIN" DIFFERENCE??!!!
Sentiment: Strong Buy
I agree. For this stock to get punished like this just doesn't add up. I'm wondering if their arrogance has caught up with them. I have lost my #$%$ and I don't know how much longer I can hold on.