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.
 

32 Comments

  1. Excellent reporting by Mr. DeWitt. That’s what a journalist should do, point out the glaring conflicts of interest these people have (yes, I’m speaking to you, Ms. Huberty). He reported it clearly and effectively.

  2. erm, isn’t the cash pile factored into the share price? If that’s the case I say to all these anal-ysts “sell your shares and stop bitching”. Here’s my ‘expert’ analysis – Steve secretly wants to see Apple become the first Trillion dollar company. At the rate they are hoarding money it’ll take another 5-8 years before their cash factored share price hits that market capitalization mark.

  3. The only thing apple should do as far as I am concerned is set up a bandwidth network for their mobile devices- iPod,phone,pad,mac,etc. so carriers can become the next industry apple owns.. kind of like the recording industry.

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