“If cash is king, then there is no doubt that Apple (AAPL) is The King,” Gregg Garvey writes for Seeking Alpha.
“However, many of the articles I read on the company misstate the amount of cash that they hold. In many cases articles will state the amount of cash held by Apple as roughly $26 billion,” Garvey writes. “That number is far from correct no matter how you slice it. Pure cash/cash equivalents were actually $9.8 billion at the end of the last quarter. But truth be told, Apple was virtually sitting on $81.6 billion in cash/investments.”
Garvey writes, “In turbulent times, these cash reserves act as a huge safety net for investors – putting a floor under the stock. Ultimately, Apple’s ability to generate huge amounts of cash, along with the cash it already holds, is one of the reasons Apple’s stock will continue to go higher. It’s good to be The King.”
Read more in the full article here.