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Berkshire Hathaway Inc. Message Board

  • hjclasvegas6969 hjclasvegas6969 Apr 23, 2013 9:55 AM Flag

    o/t, aapl. email to my buds long aapl very big,

    the only remaining RISK here is the div and buyback news may disappoint because the experts who follow aapl haven’t covered this well. Based on my understanding of how much CASH they can use without facing the 30 %ish tax consequences, and based on the assumption they aren’t going to borrow large to do more, I expert a div raise to 3ish $$ a 1/4 and a small increase in the authorized buyback, 10 billion tops. Every expert is now in range with respect to the 1/4 and year end guidance so they cant miss much in that area. I’m short the puts going into the call, long zero shs , so far. I hope 380ish is the max downside if they don’t raise the div or increase the buyback. good luck to all aapl players !!

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    • "Apple announced that its board has authorized an increase to the company’s program to return capital to shareholders. The company expects to utilize a total of $100B of cash under the expanded program by the end of calendar 2015. This represents a $55B increase to the program announced last year and translates to an average rate of $30B per year from the time of the first dividend payment in August 2012 through December 2015. As part of this program, the board has increased its share repurchase authorization to $60B from the $10B level announced last year. This is expected to be executed by the end of calendar 2015. Apple also expects to utilize about $1B annually to net-share-settle vesting restricted stock units. Additionally, the board has approved a 15% increase in Apple's quarterly dividend and has declared a dividend of $3.05 per common share, payable on May 16, to shareholders of record as of the close of business on May 13. In conjunction with the expanded return of capital program, Apple plans to borrow and expects to announce more details about this in the near future. Apple said its management team and board will continue to review each element of the capital return program on an annual basis."

      They do plan to issue debt in order to avoid paying taxes through the repatriation of overseas profits. I hate our current tax system. There's got to be better system.

    • If AAPL were to drop to 300 I'd lose about half my gains for the year because like you, I'm short their puts.

      I'd like to see a $1 per month dividend and a like amount used for a new share repurchase program with some teeth.

      What's the downside risk for the stock? It depends on the quality of today's earnings and their future projections. I'm prepairing myself for the worst.

      If it were to drop to 350 due to an earning's miss, AAPL would be down 50% from its high but they'd still have a ton of cash and likely still be trading at below 10 times earnings. That cash does provide us with downside protection and I'd be looking to buy shares in my IRAs if it traded under 380 for a trade.

    • btw, what happened to the aapl bulls 3 months ago ? any current thoughts BEFORE the call ? thanks.

 
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