Multiple things that you need to consider over here with this stock.
It is a love-hate relationship with Analysts and Market. No other stock with such a big Market Cap or Share price trades in this volume. Check goog/AMZN/PCLN/Mastercard etc.
1) 60 billion is a very huge number and the psychological effect will be magnified. Whatever AAPL did till today has been grand and this buyback is too. Analysts have always been complaining that AAPL is hoarding money and not buying back their stock. They sold calls and downgraded. Now AAPL is buying back and they all have cold feet? or they want to reverse their position but the train left the station too soon. Did you also notice that many other companies followed the buyback wagon?
2) Removing or Retiring these shares will increase EPS assuming EPS stays flat, which would make the stock very cheap and attractive.Same as sharing a cake between 3 people vs 5.
3) Borrowing at 2 % and retiring shares that pay dividend of 3 % is more money in the pocket for AAPL.
4) The 145 billion cash is still available earning at-least a 3-4 % and will be used for any major acquisition.
5) AAPL will update the SEC and the exchange about the shares retired every quarter, i believe and then the float will be reduced by the exchanges.
6) The common assumed mistake is that AAPL is a hardware company and the lifecycle is only for 3 yrs before a product is matured. Assuming that AAPL is dead and there is no innovation is a stupidity and shorts can burn fast here. AAPL has been doing a lot of research in Nanotechnology and there could be many new devices and breakthrough technologies that could be unveiled. Not all might be a hit, but the ecosystem i.e IOS is so strong that any device connected to it will stand a chance as a future gadget.
This is real fear of a move to 530
Only shorts who are about to get slaughtered. The only wannabe shorts are the massive put buyers, MM's who are short, are already covered and we will soon see the short interest drop big time
All you can say is flawed/ pumper etc. Can you challenge the math with your genius crow brain?
Brilliant financial engineering: Apple borrows @ 2%. buys back shares that pay 3% dividend. save 1%. AND interest tax deductible! Puts a bottom to the falling share price. Improves the yield to 8 %. 5% with buyback and 3 % dividend. Still has the same amount of cash left for investments and strategic acquisitions.
Can anyone beat this?
Sentiment: Strong Buy
So will the others. Call them as this is the best entry as one would get.
wow. It means that AAPL is not in the hot seat anymore. It is passed to Samsung now. No one now cares of AAPL. that is good for the stock, with beaten down expectations, there is a lot more room to run
selling put and buying call is how this starts. AAPL will buy back in the open market starting slowly, building up the pace as the stock moves up. Halt when it is above 500 and then if it stays there, it will buy more or make 500 the base. All they will do is make sure that they get as many as they can while keeping the investors still interested
The challenge APPL faced when it hit 700 is to its advantage at 400. GOOG and AMZN will face the same now while AAPL is the only choice left in the undervalued territory in the blue chips. If every fund increases by .5 to 1 % every month, for the next 3 months, they would accumulate AAPL and sell GOOG/AMZN without impacting the share price of both.
Follow Tim cook on this biggest buyback ever. The shorts are worried as they sold calls and bought puts. The big banks i.e GS and JPM had started covering their market short and will be done next week. The max they will hold is till next week end. The $100 billion is just their FCF till 2015 in the current situation. If AAPL releases a new technology in the fall or 2014, It would be generating more FCF by 2015.
Every hedge is waiting on the other to jump in first and the value investors are waiting on the index funds to start accumulating. No one is selling now and no one has started buying now. Even with 35 million shares traded on the earnings the next day, it is well below the average trading volume during the momentum.
We will not see momentum return till the stock touches 500. But we will see major balancing of the index funds and value funds. They will not bring a 10-20% jump as we saw in momentum, but a mere .5 to 2 % eitherways and the volume could fall below 10 million.
Major resistance till next quarter is 475-480. If we go past that, 530 is where it will hold by yrs end.
Sell puts and buy long calls, the puts give you a lot of premium and the calls are very cheap.
i had flagged dumbs like you on the ignore list. how do you pop up again? Is there a pesticide software like an anti-virus?
Only CNBC compares it to AAPL,
I see reports from Korean Analysts who say
"some analysts say the rising production cost of higher-end devices may chip into Samsung’s margins.
The Galaxy S4′s new features “could potentially put pressures on their overall smartphone margins. The big cost drivers are the improved HD resolution AMOLED touchscreen, quad-core applications processor and memory"