Apple’s cash hoard could grow to $146 billion by end of 2012

“The $76 billion Apple reported last quarter could grow to $146 billion by the end of 2012,” Philip Elmer-DeWitt reports for Fortune.

“Apple’s (AAPL) fourth fiscal quarter doesn’t end until next week, but Morgan Stanley Katy Huberty already has her eye on the company’s massive holdings in cash and marketable securities,” P.E.D. reports. “And like many institutional analysts (see Don’t be fooled by calls for Apple to declare a dividend), Huberty thinks she knows exactly what the company should do with all that scratch. ‘Repurchasing shares or initiating a dividend is the best use of Apple’s excess cash for shareholders,’ she wrote in a note to clients issued Monday.”

P.E.D. reports, “What Huberty doesn’t mention in the text of her report is that by ‘shareholders’ she means Morgan Stanley and the other institutions that hold 70% of Apple’s shares. You have to get to the fine print in the “disclosure” section to learn that…”

Read more in the full article here.
 

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32 Comments

  1. To me, the CASH HORDE represents the survival of Apple on into the future.

    The cash horde of $4 Billion from back in 1996, before Apple’s marketing division did their very best to tank the company with over-orders of $1 Billion in market rejected Performas, saw Apple through its worst times, bought NeXT, hired Steve Jobs and continued Apple’s ability to make the best computers on the market despite HATE HATE HATE from the TechTard press.

    Thanks to that cash horde, Apple was never on the brink of bankruptcy. It soldiered on into its current era of unprecedented success. 😀

    1. There’s a huge difference between $4B and $146B. If Apple gets to the point where it’s blown through $100B and really needs that extra $46B to survive, I’m not sure it’s worth it.

      I’ve seen this argument before. The rainy day. It dismissing the notion of who’s money it actually belongs to. As an investor (owner), you really don’t want Apple, or any other company for that matter to have that much cash on hand “for a rainy day”.

      1. I am a shareholder, and I am fine with it. If you have watched the trends for Apple’s cash and securities, the short term portion has leveled out and the growth has been going to long term investments. I have no doubt that Apple gets a better rate of return on investment than I, and Apple has show great restraint in acquisitions. So i am not worry about Apple wasting the money. In addition, with Apple retaining those earnings, I avoid the tax impact of a dividend distribution which I would simply plow back into more AAPL.

      2. let the board decides what is in the best interest of the company and not you or stupids journalists. They know better and they have put the company into this strong position. If they take any note of stupid articles or comments or advised from analyst then I am sure they would have gone broke. Note to Steve & Tim Do what you think is in the best interest. Ignore all comments or advise.

  2. Is there truly such a thing as “excess cash”??

    I say keep stockpiling the money. Sure things are going great now but that does not mean they won’t need the cash to re-invent the company again sometime in the future.

    It must kill these wall street dipsh*ts to see all that money sitting there with no clear path for them to rape the coffers.

  3. As an investor I am more than happy to have Apple keep the cash and use it as muscle and protection against its competitors and the “HATE” press as someone mentioned above.

    One thing that I would quite like is if instead of a dividend, Apple issued something like a coupon that allowed you to spend it on Apple products. I am sure investment funds that hold billions of Apple stock may not like this, but then again it might allow them to get rid of their PC’s and replace them with Macs. Probably not legal, but I can dream.

  4. With half of that over off shore money, Apple could buy an island large enough for their own country with an air port (the kind you land jets on) and a shipping port. Pay no taxes any more. Just establish their own sovereign country.

    To get around the currency problem, all shipments will be paid for on gold.

    You all need to “Think Different” the way Apple does.

    1. I was having the same thought of Apple purchasing an island and adding a new country to the world’s map. Islands like Singapore, Hong Kong and Taiwan have shown that it’s feasible to compete against much larger land masses.

  5. I think it’s time Apple wakes up and gives the money to the rightful owners…The shareholders…

    Sure keep enough for a rainy day but the excess horde is getting a bit ridiculous at this point….To those that think Apple needs that kind of money in reserves you’re wrong….Every company should stay a bit hungry and know that their existence rides on innovation and doing their best…Lets face it with the kind of money Apple has they all know they can afford to screw up royally for years to come…

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