“If cash is king, then there is no doubt that Apple (AAPL) is The King,” Gregg Garvey writes for Seeking Alpha.
“However, many of the articles I read on the company misstate the amount of cash that they hold. In many cases articles will state the amount of cash held by Apple as roughly $26 billion,” Garvey writes. “That number is far from correct no matter how you slice it. Pure cash/cash equivalents were actually $9.8 billion at the end of the last quarter. But truth be told, Apple was virtually sitting on $81.6 billion in cash/investments.”
Garvey writes, “In turbulent times, these cash reserves act as a huge safety net for investors – putting a floor under the stock. Ultimately, Apple’s ability to generate huge amounts of cash, along with the cash it already holds, is one of the reasons Apple’s stock will continue to go higher. It’s good to be The King.”
Read more in the full article here.
Analyst, who run nothing or produce nothing, will continue to scream,”spend it! Spend it!”
Idiots.
that’s because those who can’t … Analyze the actions of those who can and do …
You can quote me …it’s an original …
You both are right on. Well said. Running a business successfully is what Apple does. They don’t need advice from people who don’t even run a business.
They can run their mouths, and that’s a fact
So they should listen to Rob Enderle, CEO of Enderle & Associates.
/sarcasm
It’s right to hold cash, but once you get over $100B, the case gets much weaker to continue to hold all that cash. Apple needs a capital allocation policy – I suggest stating a minimum (say $100B) then divide all future generated cash between adding it the balance sheet and issuing dividends, maybe a 50/50 split. Do the math and this would enable Apple to still add roughly $20B per year to the balance sheet AND do a roughly $20/share dividend.
And in classic Apple fashion, they should tell investors: Here’s a dividend to thank you for holding our stock and we hope you will buy more great Apple producers with the cash. They should call the allocation policy: recycling…
Ummm… No.
This about what I would expect from this site – strong opinion with an attitude and nothing backing it up. What you are missing is that Apple needs to open the stock to new investors like value/dividend players, so a dividend could be the key to getting the stock to really move. But I guess brilliant contributors like JWSC are right, just because.
No Dividend please just keep growing and pushing the stock price higher!
I reckon they’re saving up to buy Google 😉