their cash they had is now tied mostly to Medium term instruments 5-10 years. It is not cash, one reason why Cook does nothing but repeat the same mumble during his conferences. In reality Einhorn's plan is not that bad when one considers the reality of AAPL. Also everyone pays taxes, why is AAPL not paying taxes hoping for Uncle Sam to foregive them for their taxes. What a nonsense keeping the investors disoriented on false premises and promises that may never be fulfilled. Rather Cook should fire Oppenheimer for failing to activate a veritable realistic plan to maintain a dependable share price as other companies like GE and IBM do. AAPL has been hijacked by CNBC, Hedge Funds news ads and AAPL does nothing about it. Therefore, I believe they are behind all of this actions, they are part of the FED QE mess
Having cash in bonds and tbills is standard practice. Perhaps Oppenheimer should have dug a huge hole in the new campus to bury the cash? Seriously, since when did a publicly traded company receive so much criticism for having too much cash. What if Apple buys ATT or Disney?
Internationally, the cash hoard exists for two reasons. First Apple often (pre)pays for production time, labor, materials and logistics all require a lot of cash--often upfront to lock in the lowest prices but also to prevent competitors like Samsung from using those same materials and factories. This is why the s4 is coming out next month instead of August. The second reason is the tax amnesty granted once by the IRS. If the economy sours and the government gets desperate, the 30% tax hit may be reduced dramatically to bring in tax dollars for the government. So if Apple were to bring all of their foreign cash back to the states, the tax bill would be roughly $30 billion, which is bad for shareholders and the stock price.
Oppenheimer should not be fired. He should be rewarded by the shareholders for his prudence, price controls, and wisdom for spending all the money. Rule #1 for CFOs: watch and grow the money. He's done that better than anyone. Oppenheimer is not a PR guy, and Apple didn't spend much on advertising and lobbying, nor should it. Apple doesn't and shouldn't care about CNBC, shorts, speculators, and current sentiment. Apple must continue to focus on producing the best products in the world. If that happens, AAPL will be fine.
maturity has nothing to do with liquidity. T Bills, gov bonds of any maturity are considered cash equivalent as they can be sold at any time for little or no discount on the free market. Don't be fooled! APPL has tons of cash and they will pass it on to investors...
5-10 year notes may be worth less in the months ahead if and when the FED unwinds QT and interest rates go up. They could drop 20% in value on a hitch. Weighing rate risk or paying part taxes now ........what is better? Wall Street does not like risk and they are being reflected into the share prices.