“In my previous life, I worked in sales for a software company,” Micahel K. Dawson explains. “Our sales conferences were in some of the most beautiful places in the world. Knowing that we would be stuck in windowless conference rooms from sunup to sundown, we would always get to the location a few days ahead of time to enjoy the lay of the land. If we had been in Newark, no one would have cared, but being in Hawaii and knowing that the perfect day was only a few steps away was torture. That must be how non-Apple shareholders have felt over the last 10+ years.”
“Apple has been an institutional stock favorite and has rewarded growth investors handsomely. Value investors are finally getting a crack, as Apple’s valuation has been compressed due to Wall Street’s disbelief that a company of its size can continue growing earnings and revenue at such a clip,” Dawson writes. “Practically all classes of investors have had an opportunity to enjoy the sunshine, except fund managers restricted to investing only in dividend-paying stocks. Now that shareholder-unfriendly Steve Jobs has died, it’s time for a dividend ‘darn it!'”
Dawson writes, “Not very many companies have the capacity or the know-how to think at such a high strategic level [as Apple], so they simply do the expected – use excess cash to buy back stock or pay a dividend. Unfortunately, Apple’s stock price is paying a price (compressed P/E) for not being ordinary. That being said, the stock is near its all-time high, and other than the Apple non-shareholders, not many are complaining. I expect that [buyback/dividend] proposal[s] will get very little support at the annual shareholders meeting.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]
when they have a trillion in cash people will scratch their heads and say a one-time dividend is alright
at a certain point cash is insulting to shareholders since it becomes an opportunity loss
Wrang!
NEXT!
WTF is this idiot talking about? Share buy back scheme? Why would Apple throw money away on this stupid enterprise when they could use it to buy product components in advance or spend it on R&D to further extend their magical products.
ANALysts and hedge fond managers don’t think about what’s best for a company, but ONLY what’s best for THEMSELVES. They are scumbags and vultures hoping to rip out as much as possible from someone else work to stuff their own pockets without having to work or do anything. They don’t care if they leave only carcasses behind.
You said it well, my friend. They are truly vultures (actually vultures serve a more useful purpose since they only feast on the already dead) but these hedge funds go even after healthy companies and attempt to feed on them, as vampires would. Weakening companies for short term gains just seems counterproductive. If a good company has a long-term strategy, then that’s how it is. Apple is about as good a company as it gets, so I think they must know what they’re doing to protect the company if not the shareholder directly.
It would appear that at least a number of Apple analysts are in cahoots with the hedge since they’re always chiming in about what new product Apple is going to come out with but honestly don’t have a clue. I think they’re completely wrong in doing that sort of speculation about a company. An analyst should only deal in facts, not future products, especially with a company that is trying to protect future product secrecy. That’s outright manipulation.
I’m an Apple shareholder from 2004 and I’m not complaining. I do wish Apple could do something about getting a greater percentage of individual shareholders and that would likely involve a split.
Again with the potty mouth BLN. What would happen if you just said: ‘I don’t understand what this writer is talking about.’ rather than having to resort to expletives and name calling?
Agreed. He may have had some excellent points to bring forward but when the expletives start it seems to detract from the ideas he is trying to put forth.
Not really one to defend BLN, however… when you two grow up, get a real job and move out of your parents house you will discover that adults in the real world use expressions like WTF all the time when dealing with complete and utter idiots.
Oh and… the Tooth Fairy and Easter Bunny are made up constructs that adults created to add some extra magic and wonderment to their children’s lives.
Sorry to burst your bubble(s)…
Kids can find “magic and wonderment” just by crawling around in an empty cardboard box, unless they’ve been brainwashed into thinking they need the latest electronic gizmo. They really don’t need enlightened “adults” like you deceiving them with a bunch of phony bullshit.
Along with cursing, other “adult” activities are drinking, smoking, drug abuse, promiscuity, infidelity, etc. Do these also help you deal with idiots?
Wow, touched a raw nerve, eh?
I’m a Apple shareholder and I’m complaining…
Complaining that I don’t have more Apple shares than I do!
Dividends are only for companies that have nothing else to offer. I.e. Microsoft
I was thinking if apple could buy back all the stock to stop the ridiculous manipulation that goes on. But really do apple care? I doubt it.
Fwiw I have be all in on apple for 6 years. In that time it has grown 100% every year on average. No large cap since dell in the 90 s has done that. Apple are unique and the market will never get them.
Just like when the first iphone arrived, the only people complaining about the iPhone’s magical keyboard was people that NEVER used the iphone’s keyboard.
Fascinating how people is divided into “Smart ones” and “Apple Haters” or “Anything But Apple” people.
I expect that [buyback/dividend] proposal[s] will get very little support at the annual shareholders meeting.”
The reason being, Apple is standing on the threshold of adding yet another quarterly 5-6 billion dollar revenue stream to it’s existing pot ‘o gold; revenue from advertising.
Apple’s first quarterly report of fiscal year 2012 will be a significant hallmark and if all is going according to plan, we should see a modest drop in cash reserves for expenditures in infrastructure related to search and advertising, in the next six-months.
Ballmer is throwing chairs because of Siri. He’s been working on Voice since 1992 and has still yet to come up with anything remotely resembling the functionality of Siri.
I’ll bet a million dollars to one, that Microsoft will repackage a host of less-than-stellar voice-related functionality into something new and wildly fun sounding in an attempt to steal some of Siri’s thunder and momentum. (remember in the Nineties when Gates was showing off their voice-related technology and the disaster that ensued?)
Steve Jobs learned late in life, money isn’t everything but if its the only thing your competitors value, then build products made of gold. Who can afford to spin gold, if they aren’t making money doing it?
Go AAPL.