“Apple (AAPL) Chief Executive Tim Cook says the company is still evaluating ways to return more of its ballooning cash pile to shareholders, but didn’t offer any fresh insights, at Apple’s annual shareholders meeting Wednesday,” Patrick Seitz and Kevin Shalvey report for Investor’s Business Daily.
“Cook said he still believes that a lawsuit filed against the company by activist shareholder and hedge fund manager David Einhorn is ‘silly,’ even though a federal judge ruled in Einhorn’s favor last week,” Seitz and Shalvey report. ‘The lawsuit was not about whether Apple should retain cash .. . it was about shareholder rights,’ Cook said. But he said the matter of what to do with Apple’s cash hoard of $137 billion is a serious one.”
Seitz and Shalvey report, “‘I don’t think the issue of returning cash to shareholders is silly — we’re seriously considering it,’ Cook said.”
Read more in the full article here.
Why is every one calling it “returning cash to shareholders” when these “shareholders” have done nothing to help Apple gain that cash. I know that when you own a share you presumably own a part of a company but I found it quite amusing how some one like Einhorn can just buy a bunch if Apple stock and then lay claim on te cash. How did he help Apple generate that cash now again?
Then who owns the cash?
I guess. All we did was provide them with working capital in exchange for an expectation of commercial success. Since we bet and we won, we should now enjoy whatever fruits of our investment come forth.
Yeah last time I checked Apple wasn’t a charity. Of course you should enjoy the fruits of your investment. Why the hell else would you invest your money? Otherwise just take it out in the front yard and burn it. Although investing in Apple the last five months is pretty much been the same thing.
See my comment below. Shareholders are NOT owners of the company — NOBODY can be an owner of a company, as companies are, by the definition of the law, persons (not physical persons, but legal persons, for the purpose of the law), and cannot be owned by anyone.
http://www.directorship.com/stout-shareholders-as-owners/
Shareholders are not ‘owners ‘ in the traditional sense like owning a car but they are closest thing to owners for a company.
if you strip out the legalese this is what it means:
1) say if a shareholder holds 10% of apple stock he (she) can’t go and exchange the stock for 10% of apple assets. He can only sell the stock at market value
2) but if the company dissolves, he has a share of the assets including the cash minus liabilities (like debt). Other stakeholders when a company dissolves with a say are staff (for example a company might have pensions etc) and customers (for example for warranties).
Shareholders do hold ex ordinary power because they elect the board and vote on various motions that control the direction of the company (all these based on past resolutions and shareholder contracts). The Board hires the CEO so the shareholders can indirectly hire or fire the CEO. Of course this takes majority vote.
Shareholders via pressure of the board have fired the CEOs of Palm, Rim (the founders), Acer, HP (several times) , Nokia etc. (and I’m just listing the tech companies).
Funds right now control 70% of aapl. Most of them seem to be backing Cook now. But if the stock continues to tank there is possible (if remote) chance they (if they have a majority) will pressure him to release the cash or fire him. They could get the board to hire someone who will distribute the cash (or whatever). (so the question of whether they are ‘owners’ of the cash is academic)
so in the end if you strip out the legalese – shareholders are not owners etc – the reality is that shareholders hold huge amounts of power.
——–
in the end just from an ethical standpoint:
apple owes shareholders because that was the path Apple chose at the start to go public and sell shares. If Jobs, Woz etc didn’t want to be bothered with shareholders they should have just kept it private. Without shareholder funding apple won’t exist today. To go down the street now and say (which Cook is NOT saying) ‘fuk the shareholders’ is just morally wrong.
didn’t realize someone else had used the name “shareholders” . I’m different from the person who posted here as well.
Uh, genius, the shareholders OWN this cash. They have EVERY right to this money. For your information, Apple Inc is OWNED by the shareholders.
My goodness, the stupidity of the raving drooling fan boys is just staggering.
That is actually incorrect. The “Shareholders own company” myth has been successfully perpetuated all over, but it is simply not true. Here is a very detailed explanation:
http://www.directorship.com/stout-shareholders-as-owners/
Every stockowner owns ALL that cash anyway, it’s built into the bottom line valuation, which each share is worth, dumdum
Distribution of wealth is the cornerstone of liberals! Don’t invest or innovate; just pay out money and devalue stock. This along with Apple’s political social engineering agenda make it clear who’s in charge! Man I miss Steve Jobs!
me too.
There’s always one who has to bring politics into everything about Apple.
Bozo, this isn’t “distribution of wealth”, by which you’re implying giving someone’s money to someone ELSE.
This is giving money being “held” by Apple TO THE OWNERS OF THE MONEY, the shareholders.
Jesus H. Christ. This guy is clueless and appears to be the complete opposite of gimlet eyed, Steely Dan, resolute Steve.
By the numbers Management 101 is what is going to kill Apple. Where is the visionary when you need him?
New Apple = new RIM.
The “H.” is silent.
In Taos, so is the “J”
One can only wish that BLN would emulate aforementioned “H” and “J.”
Ha
And so is the ~¥^ in Klingon.
As I noted on another thread, Cook grew Apple by about $48 billion in fiscal 2012, which was more than Google, Microsoft, Dell, HP and Research in Motion combined.
Now what was it you were saying about management killing Apple??
Apple. Buy AAPL back from shareholders. Take it private. Exit the corrupt shitpile that is wallstreet. Continue to be awesome!
+1000
You have the successful business idea!
Wall Street only understands how to rape, pillage and burn: so what if a few companies are destroyed as long as shareholders get money. Look around you; now, you see why there are fewer and fewer American companies.
Why? Apple as always, ignores the barking dogs…
Try it, it works dumdums.
The more I read or hear about Tim Cook, the more disgusted I
become, seems like he’s so scared of making any bold moves ,
just cannot decide what to do or relying too much on other executive
decisions.
CEO Tim Cook, received a 99.1% approval rating from shareholders that know and trust him.
I own shares for over 250.000 Euros, and I want to say very clear: I don’t want a dividend. Apple should invest that money in things the world really needs – from a new Mac Pro to green energy.
There is a lot what can be done with that money really helping the mankind and also being a great future business. Apple has enough money to take some risks nobody else could take.
No, I don’t want and money “back” because I don’t feel that I have a right for it. I only want a serious strategy what to do with that money. This is what I am really missing.
If you don’t want money back, why did you invest in the first place?
That’s a simple question: a dividend takes value out of a company. Fast money but stupid money.
A great investment adds value, shares will rise in long term. I am a long term investor, not a day trader.
I think Apple has great potential but a lousy communication strategy, if any.
Because we wanted to help make a dent in the universe. Apple is not about money; it is about bettering mankind. Or, at least, it was.
What! Have you seen how much their executives and board members make? Have you? Do you know how much Tim Cook makes? Steve Wosniak wanted to give away the original computer he developed. Steve Jobs said “oh no we can sell those and make money”. And that’s fine. Especially with me. Capitalism is good. Profit is good. Apple didn’t become the biggest company by giving away their products now did they? I said the biggest, not some little bitty feel good company. The biggest company out there! And I don’t know who this “we” is your talking about? Got fleas? Apple is all about making money. They’re a for-profit company. They have the highest margins possible. Making money is what they do. They make great products so they can keep making great money. Nothing wrong with that. It feeds lots of families. Remember, Apple isn’t a charity. You must be thinking of Mother Teresa. And as for “bettering mankind”? You simply watch way too much Star Trek. Live long and prosper. And don’t skip your medicine tomorrow.
Could Apple return the foreign cash to shareholders and they become responsible for the tax liability?
Screw giving the money back. That’s what dividends are for. If Tim Cook can’t stare down the hedge fund managers and tell them you’re playing our game, not the other way around, then we really are in trouble.
People invested in Apple. Maybe the greatest company ever. Not an ATM and not a lottery ticket.