I wonder if the verdict will be reduced to a reasonable licensing fee?
It's equivalent to a $1.00 per phone sold. I wonder if the verdict will be reduced to a reasonable licensing fee?
Yet for almost 24 hours Alphabet was on top of the world.
Higher earnings manufactured through less outstanding shares in the float, but the shares are still in the treasury. Retiring shares does not translate into higher sales growth which increase earnings. All I am stating is that the high cost of repurchasing the shares appears to be a loss of capital at this juncture given that these repurchases are under water at the current share price of $95.00/share. The repurchase has not been a winner for shareholders at current share price level.
Ok if this is not true, what is your criteria showing the untruth of the buybacks helping propel the shares of companies higher.
A larger proportion of the buybacks are over $100 per share, so on an average cost basis is it safe to say at best a break even on these repurchases? Returning a higher dividend is shareholder friendly, the repurchases are employees perks given at shareholder expense. History shows repurchase do nothing for the longevity of a higher stock price. Ibm classic example, xom too, Csco, Intc, Qcom, Msft, Orcl, etc. etc, etc.
In the year and a half since the split, Apple earned +-$80 billion in earnings, bought $100 billion+ in share buybacks, increased its dividend multiple times and what do the shareholders have to show? A stock that has not appreciated, $50+ billion in debt, an excessive amounts for stock grants to key executives paid through high stock price repurchases. This is for an average return of a 2% dividend.
The financial engineered stock buy backs add no value to a company's growth prospects.
The money may be spent more wisely in R and D with the execution of implementing innovations from the R and D into existing or new products.
Or change the corporate structure and leave the U. S. tax domicile so the dollars in foreign lands can be utilized for corporate purposes that add value and growth to the existing brand.
It appears the financial community values Apple excluding cash at $50 per share. This valuation appears on the low side of valuation for plant, equipment, intellectual property, employees and good will. Yet this is the value placed on Apple's business.
The grow aspects of the business model currently in play is slowing as analysts point out in their analysis reports, and price targets for Apple stock lowered.
It appears that everyone is leaving the bonanza and asking the last one out of the room to shut the lights off.
Are the lights off with Apple?
Buybacks continue to demonstrate a waste of money for the shareholders. This scenario has played itself out the past 15 years, look at the results of these companies: Msft, Csco, Intc, Qcom xom, IBM, GE, all mega caps, and the list goes on, have little to show using cash to purchase their own stock in the way of stock appreciation.
Leaving cash on the balance at this time appears to be the better investment. Pressuring Congress to repatriate funds with a few well overpaid lobbyists may be a sounder investment strategy.
Of course a higher dividend is always welcomed, please no more buybacks.
It's apparent there are more aggressive sellers than aggressive buyers.