First, I would admit that I absolutely love Apple products. Their marketing of the products is brilliant.
I have been scratching my head over this for last 4 weeks. Why does Google get 2X valuation of Apple on the EPS basis even with one third the cash pile of Apple?
I think the answer lies in the fact that market awards Google for risk taking.
Google has had many flopped products, but market does not care. Google keeps market guessing and keeps the market interest in the company alive.
Now think about Tim Cook's style of overly cautious style of running business
1. Apple keeps hoarding unbelievable amount of cash (At present 150 billion or so) that collects dust and earns measly rate of return of 2%.
2. Apple is very afraid of failure
3. Apple chooses to take a safe road in introducing small innovations in their existing portfolio
3. Apple makes very few acquisitions and almost never makes big acquisitions. Most of the acquisitions are less than 500 million
4. Apple is afraid to increase dividend or payout shareholders from its pile of cash because they are concerned about the future and keep the cash for rainy day like old grandmas.
5. Apple is very cautious in moving into different Geographies. How long did it take them to make a push into China and India?
That came out of my extreme frustration with secretive nature of Apple and how they are letting AAPL become a trading vehicle up and down for manipulative rogue hedge funds
Why is Apple so secretive about their business?
There are virtually no press releases in the last one month or. Thats not what you would expect from a 460 billion dollar company.
They absolutely do not need 150 billion dollars to innovate and develop new products. Google has one third of the cash of AAPL and they have more innovations coming out than Apple.
It absolutely does not make any sense to hoard 150 billion.
not moving. Oct 21 close 521.36
Coincidently, World's biggest company in market capitalization has issued 2 very mediocre PRs within that time since their earnings release.
I love apple products, may be I should have just ended my relationship there.
Its like pretty girl that is dumb and heartless at the same time.
Just letting AAPL free fall in the veil of secrecy and Apple shareholders suffer.
why does the SA article show new ownership as 83,948,100?
There is another poster here that refered CapitalIQ (S&P company) reporting the same.
where did you get this from?
It is indeed a good news if it is from reliable source.
Not sure if that includes 25 million convertible shares, even if it does not, it still shows 6 million or so increase in holdings from his 52 or so holding