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Why Apple shold annouce a special dividend a la Costco


By SFace   Follow   Wed, 28 Nov 2012, 2:21pm   464 views   3 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. Bellingham Bill


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    1   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

  2. Bellingham Bill


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    2   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

  3. zzyzzx


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    3   12:36pm Thu 29 Nov 2012   Share   Quote   Permalink   Like   Dislike  

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