“Predicting anything that Apple Inc. will do is a somewhat risky game, but some analysts are betting that the company may crack open its massive, bulging wallet in the near future to return more cash to shareholders,” Dan Gallagher reports for MarketWatch.
“Sparking this sentiment is Apple’s own statement from Thursday afternoon, with the disclosure that its board of directors and managers ‘have been in active discussions about returning additional cash to shareholders,'” Gallagher reports. “The statement followed the proxy filing and lawsuit by David Einhorn, who has been pushing the company to consider using preferred stock to return more cash to shareholders.”
Gallagher reports, “Some analysts took that as a sign that some changes may be coming for a company that has an enormous pile of cash — more than $137 billion — and a reputation for holding on to it. Apple initiated a dividend and some buybacks just last year, though most believe those programs to be small relative to the company’s cash generation machine.”
Read more in the full article here.
Related articles:
Apple with $137 billion in cash considers preferred stock – February 8, 2013
Einhorn’s Apple lawsuit marks biggest investor challenge in years – February 8, 2013
Gamco’s Haverty: Apple’s cash is ‘shareholders’ cash’ (with video) – February 8, 2013
Apple shares surge following company response to Einhorn – February 7, 2013
Greenlight’s Einhorn sues Apple over plan to eliminate preferred stock, wants more cash distributed – February 7, 2013
Greenlight Capital urges Apple shareholders to vote ‘No’ on proposal 2 that would impede Apple’s ability to unlock shareholder value – February 7, 2013
Greenlight’s Einhorn sues Apple, ‘dissatisfied with capital allocation strategy’ – February 7, 2013
Gamco’s Haverty: Apple board can be sued over excessive accumulation of cash (with video) – January 28, 2013
Greenlight’s Einhorn: Apple ‘the best big growth company’; Fed stimulus ‘counterproductive’ – July 10, 2012
David Einhorn says Apple isn’t a below-average company, it’s just priced like one – May 30, 2012
“Cash generation machine”… That would sell!
Any idea what this would mean, say, if I had 100 or so shares bought at $80. Is it just a bigger dividend or…what? (I don’t invest, I just “have” shares and sit on them). Thx
If they make a higher dividend, you get more money. If they buy back shares there are less shares out there. Assuming profits remain the same, your shares become more valuable. If they issue Preferred stock, greedy pig bastards like Einhorn get rich and you get shit.
I’m reminded of my sheep. Wave your right hand and they panic to the left. Wave your left hand and they panic to the right. Most of them don’t even see your hand move. They just run with the flock. They don’t understand why.
Thank you. I will keep that in mind always!
Yeah, I used to moved them to the left and right both at once by waving a “Free Beer” sign….oh no wait, that wasn’t sheep.
You, sheep and hip boots. I can see it all now. Baaaaaaaah!
It is more than dividends, the cheques will be delivered by fairies covered in pixie dust.
Yes, it definitely will be a fairy tail.
The cash belongs to the stockholders. This hoarding mentality has to stop. Give it back asap.
Childish. Time to grow up.
Biggest mistake – Tim Cook setting dividends.
Things were always better when Apple told “wall street” to go fuck itself!