Update: Apple Announces Dividend for Q4, $10B Share Repurchase for 2013; Closes Above $600
March 19, 2012 5:12 PM
comment(s) - last by
Apple plans to use $45 billion of its cash reserves over the next three years
It's no secret that Apple is a cash machine. The company rakes in billions of dollars thanks to a legion of loyal fans that lineup hours in advance to purchase its latest and greatest phones and
. The company has also seen a surge in its traditional PC business thanks to strong sales of its MacBook Pro/MacBook Air lineup of notebooks and iMac all-in-one desktop computers.
In late January, Apple reported profit of $13 billion on revenues of $46 billion for
fiscal Q1 2012
. The company saw its
stock price cross the $500/share threshold
in early February, making it worth more than Microsoft and Google combined. More recently,
has danced with the $600/share mark. In addition, Apple has
roughly $100 billion in cash/securities on hand
– a figure that CEO Tim Cook said is “more than we need to run the company.”
Apple CEO Tim Cook [Source: David Paul Morris/Bloomberg]
This morning, the company announced a $10 billion stock buyback program that will start in fiscal 2013. The buyback will take place over the course of three years with the primary goal being to "[neutralize] the impact of dilution from future employee equity grants and employee stock purchase programs."
A more immediate action being taking place is a quarterly dividend starting in fiscal Q4 2012. The quarterly dividend will equal $2.65/share.
“Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program," said Cook.
According to CFO Peter Oppenheimer, these programs will burn through $45 billion of Apple's cash reserves over the next three years.
Updated @ 5:12pm
AAPL just closed
for the first time in its history.
This article is over a month old, voting and posting comments is disabled
RE: If you want to buy, WAIT
3/20/2012 10:35:56 AM
Man, good luck with that technical analysis.
Personally, I put the value of such analysis on par with the intrinsic value of those "magnetic bracelets" you can buy.
I'm more of a "random walk" stock price kind of guy. My analysis consists of trying to imagine the world in 5 years, then buying stock of those companies that will probably be successful in that world. That's it.
RE: If you want to buy, WAIT
3/20/2012 5:32:18 PM
Technical analysis is an excellent way to evaluate risk, especially in the short term. I'm saying that AAPL chart is currently risky, that's all.
If you wish to buy at these levels while AAPL's price is so historically far from its mean and after such a move, be my guest. In the mean time, TA has helped me pick numerous buy levels with reduced risk over the years. Again, wait. I used my pick from last year as an example, got in at the lows of 2011, and it was all from the charts.
If you don't know much about TA then fine, but don't pretend ignorance is knowledge. A good trader or investor will use both technicals and fundamentals to their advantage.
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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