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Why Apple shold annouce a special dividend a la Costco


By SFace   Follow   Wed, 28 Nov 2012, 6:21am PST   658 views   3 comments   Watch (0)   Share   Quote   Permalink   Like (1)   Dislike  

* 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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Bellingham Bill   befriend   ignore   Wed, 28 Nov 2012, 12:34pm PST   Share   Quote   Like   Dislike     Comment 1

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

Bellingham Bill   befriend   ignore   Wed, 28 Nov 2012, 2:42pm PST   Share   Quote   Like   Dislike     Comment 2

“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

zzyzzx   befriend   ignore   Thu, 29 Nov 2012, 4:36am PST   Share   Quote   Like   Dislike     Comment 3

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