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Why Apple shold annouce a special dividend a la Costco

By SFace   Follow   Wed, 28 Nov 2012, 2:21pm   445 views   6 comments
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* Apple is a negative capital business. They don't need money to operate anyway. (The money are collected faster than having to pay their vendors and costs)

* Anticipate dividends going up and let the individual shareholders enjoy the lower rates. Retaining the equity has no benefit. Apple is the most widely held long term stock in the country.

* Release the equity. Apple shareholders on the whole are enjoying built in capital gains, the equity release will release some of the gains and deferred tax which are set to go higher as well. Being the #1 most valuable business is meaningless to me.

How about it (Board of director), do the right things and annouce a $50 Billion dividend to be paid on Dec 18th. ($100 Billion and use their multi billion dollar line of credit to pay the dividends since a lot of the cash is probably held in foreign bank accounts) Stop dividends for five years and use excess cash for buybacks and/or repay short term loans only.

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1. E-man Follow Befriend (31) 34 threads 2,554 comments San Jose, CA Premium

   1   7:17pm Wed 28 Nov 2012   Share   Quote   Permalink   Like   Dislike   If AAPL were to do it, they'd better do it before this year ended. Otherwise, they should use the capital for shares buy back or other investment, but no dividend payout next year.

2. Bellingham Bill Follow Befriend 30 threads 1,488 comments Bellingham, WA Premium

   2   8:34pm Wed 28 Nov 2012   Share   Quote   Permalink   Like   Dislike   Apple should buy Hasbro ($5B), Sony ($10B), Radio Shack ($220M, just to settle the 1970s grudge match), Ford ($40B), GM ($40B), and Lockheed Martin ($30B). Why the hell not. Oh, Dell, too ($16B). Might have to issue new shares for that one, ah, I see they have $120B in cash and invesments, they're good for that too. Apple might make $16B (after tax) this quarter, LOL

3. E-man Follow Befriend (31) 34 threads 2,554 comments San Jose, CA Premium

   3   8:57pm Wed 28 Nov 2012   Share   Quote   Permalink   Like   Dislike   Bellingham Bill says Apple should buy Hasbro ($5B), Sony ($10B), Radio Shack ($220M, just to settle the 1970s grudge match), Ford ($40B), GM ($40B), and Lockheed Martin ($30B). Why the hell not. Oh, Dell, too ($16B). Might have to issue new shares for that one, ah, I see they have $120B in cash and invesments, they're good for that too. Apple might make $16B (after tax) this quarter, LOL Why did you leave AAPL back then?

4. Bellingham Bill Follow Befriend 30 threads 1,488 comments Bellingham, WA Premium

   4   10:42pm Wed 28 Nov 2012   Share   Quote   Permalink   Like   Dislike   “Are you going sixty miles an hour or is the train going sixty miles an hour and you’re just sitting still?" -- Jean Paul Getty

5. E-man Follow Befriend (31) 34 threads 2,554 comments San Jose, CA Premium

   5   8:13am Thu 29 Nov 2012   Share   Quote   Permalink   Like   Dislike   Bellingham Bill says “Are you going sixty miles an hour or is the train going sixty miles an hour and you’re just sitting still?" -- Jean Paul Getty Now I know the real reason. Who would have thought AAPL would comeback from the death in 2001? Not sure if I made the same mistake or was it a blessing in disguise? I was going to study finance, but it was too easy for me so I went into engineering because it was supposedly more challenging. Had I gone into finance, my financial situation might have been toast by now. All I can say is that Mr. Fortune didn't knock on your door. Stay on the look out for the next start up company. I hope Mr. Fortune will make a U turn and knocks on your door. Better late than never. :)

6. zzyzzx Follow Befriend (9) 416 threads 4,138 comments Baltimore, MD

   6   12:36pm Thu 29 Nov 2012   Share   Quote   Permalink   Like   Dislike