Toni Sacconaghi keeps whining for Apple to execute stock buyback or pay dividend

Apple Online Store“Toni Sacconaghi just won’t give up,” Philip Elmer-DeWitt reports for Fortune. “For more than two years, Bernstein Research’s top Apple (AAPL) analyst been after Steve Jobs to spend some of the company’s growing cash hoard ($51 billion as of September), preferably on a stock buyback or cash dividend. ‘Shareholder frustration,’ he wrote in an open letter to the board of directors in August, ‘is bordering on exasperation.'”

MacDailyNews Take: Bullshit. We’re AAPL shareholders (we know, can you believe it?) and we’re not exasperated or frustrated with Apple CEO Steve Jobs’ leadership or his decision to grow Apple’s cash pile into a mountain. Amazingly, we trust Steve Jobs over Toni “I Can’t Find Those Missing iPhones, Oh Wait, Whoops, They’re Not Missing” Sacconaghi.

P.E.D. continues, “Now he’s come up a new argument. So many institutional asset managers already own Apple, he says, that unless the company starts distributing some of that cash to shareholders, there will be nobody left to buy the stock.”

MacDailyNews Take: Yeah, just like there were no iPhones and then, suddenly, poof!, millions. Sacconaghi is a hack.

Full article here.

MacDailyNews Take: On Toni’s very best day, Gene Munster could defecate more cogent AAPL analysis.

[Thanks to MacDailyNews Readers “Dan K.” and “James W.” for the heads up.]

39 Comments

  1. The people behind the non-existent Chinese wall are pressuring these cretins to find a way to share the cash hoard with them. They definitely do not like a dividend. They want a buyback to collect those 30 basis point fees.

  2. I don’t want a dividend. 51 billion is almost enough to bid on the upcoming bandwidth availability and launch 33 low orbit satellites to provide high speed coverage everywhere on earth. Goodbye AT&T, Verizon and Android!

  3. Shut up Toni. How much do you have in Apple? Those of us that do, don’t have a problem with Steve handling our money for us. He’s done just fine so far, I’ve made a lot of money (well, relative to my paltry original investment anyway). None of your business.

  4. @ Doug,

    You realize that satphones are line of sight. They work fine when you’re walking in a park with few trees. In a canyon downtown, it’s iffy to say the least. In an office building, maybe, over by the window. At home, only with an attached roof antenna or beside a big picture window. On a train, maybe, at a window seat, nothing under a bridge. In a subway, no way. In a car with a roof mount attached antenna.

    Apple won’t make shitty satellite iOS devices.

  5. I don’t particularly want to see a dividend or buy back, but I would like to see Apple do something with its cash horde or at least provide better guidance.

    Unlike many of you, I don’t think Apple’s business sucks. I think it’s quite stellar and certainly far better than the crappy return it’s currently getting on the bulk of the cash it’s sitting on.

    When I buy Apple stock, I want to buy into Apple’s business…because I like their business and the likely return on it. I don’t buy Apple stock to put my cash on a shelf to lose value (low interest/inflation/opportunity cost).

    Almost anything Apple could (reasonably) do with the cash would provide a better return than the crappy return it’s currently getting.

  6. Why would Apple buy back its stock at historic highs? Just to spend its cash? How stupid.

    Apple has no reason to buy back its stock. Apple has no reason to issue a dividend, which a company typically offers when it is really not growing significantly, so the stock is not expected to increase much, but you still want buyers for your stock. See Microsoft, GM, etc.

    To spend money just to spend it is exactly why our economy is in the crapper right now, Toni.

  7. When Apple says that the cash pile is for the “rainy day”, they don’t mean rainy day for the world (such as current economic depression); they mean rainy day for Apple. Last time Apple had a rainy day was in 1997. Since then, sun kept shining quarter after quarter, and there ain’t no clouds on horizon anywhere you look.

    I believe Apple will only significantly dip into that war chest if for some bizarre reason they have a series of bad quarters and their innovation begins to misfire. I wouldn’t hold my breath for that moment, though.

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