“Last night and this morning, the smarter folks seemed to think Apple would do nothing–and use the call to bash the government’s tax policies,” Blodget writes. “Government-bashing seems unlikely (at least to me). A clear explanation of why the company isn’t paying a dividend would accomplish the same purpose with agitating the powers-that-be. But ‘do nothing’ seems possible.”
Blodget writes, “I’ll bet the company also authorizes–but does not commit to–a stock buyback. Like most other companies’, Apple’s stock occasionally wilts, and there’s no reason not to have the authority to buy back a few tens of billions of dollars of it at what appear to be cheap prices. This costs the company nothing, and it would provide psychological “support” under the stock price.”
Read more in the full article here.