“There’s way too much chatter about what Apple has to do with its cash position and not enough about Apple’s earnings,” Jim Cramer writes for The Street.
“And I don’t even want to go into the idea of the stock split. If you really need a stock split to buy, move on,” Cramer writes. ” I accept the dichotomy between a growth stock and a value stock…. [Apple] is a growth stock. It’s got some terrific earnings momentum and can earn $55 a share for fiscal year 2012. That’s phenomenal growth, and in classic earnings-per-share growth analysis, measuring the company’s growth vs. its price-to-earnings multiple, Apple may be the cheapest growth stock I know.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Edward Weber” for the heads up.]
Jim Cramer is no Cosmo Kramer.
just my $0.02
Is that Good or Bad? 😉
So Cramer got religion, eh? Thanks for saving me from having to visit street.com or Henry Blodget’s rag. Both of ’em are crooks.
Don’t give out free candy, Apple.. let them sell a few shares when the greed gets the best of them instead. Apple’s money is better served as a safety net, and for moving into other technology sectors such as ISP, wireless, automotive, alternative energies and other areas that are in dire need of improvement. Doing such things are going to cost money, and stockholders should be happy with what they already get.
Apple should declare a dividend ONLY IF it makes sense for Apple, as a company and for its future plans, to declare a dividend. Keeping shareholders happy is NOT a good reason to declare a dividend. Apple shareholders can make money selling their shares, which will get them more money than any dividend.
Paying a dividend is for companies which have basically finished their growth phase, and their current growth is not going to come primarily from new/expanding product sales, but from slower growth of existing products. These are the Blue Chip stocks, like Microsoft, Walmart, IBM, etc. which cannot expect significant gains in share price because they simply can’t grow quickly.
Apple is still growing quickly. Heck, just iPhone sales in China alone could double iPhone sales this year! Apple should pocket its cash and start preparing to invest in some sort of wireless technology so that it can bypass the mobile providers and offer its own super-fast, non-data restricted wireless system.
It’s not Apple’s style to merely make a thinner iPad. Apple can’t make a huge purchase into another sector without showing their hand. I expect them to purchase a major cable/telecommunications company, providing a highly competitive satellite-based internet/media service with an insanely advanced compression algorithm, and announce its purchase in the next few weeks. Truly linking the remotest areas of the world with internet, and the latest iTunesU, iBooks/Textbooks, etc. It is difficult for a dictatorship to block satellite reception.
That would realize the $1000 stock value.
Well, this week Cramer is right.
Next week, who knows what crap he’ll spout off with.
Now as to the stock holders demanding a dividend:
When you researched and purchased your Apple stock, did your stockbroker, analyst or Apple tell you they pay dividends?
No. They didn’t.
Apple does not pay dividends.
Some of you are acting like you bought a trophy wife and now you expect her to cook dinner too?
Get a life.
The stock and company is performing beyond everyone’s wildest expectations. I believe the decision makers at “APPLE” know more that you do about how to run the company.
😉
Apple has paid a dividend in the past. Then it made little if any money and it quit paying dividends. Paying a dividend is legit and it is unlikely to have any more impact on the cash balance than the acquisitions that they’ve done in the last decade.
It doesn’t signal an end of growth, it signals strength and confidence in the future. My opinion is that it is a positive.
Note also that the market doesn’t really respect Apple based on the pe and it certainly doesn’t consider or care about the cash or lack of debts.
Throwing money away on large purchases of companies without similar cultures could very well pull down the high markup and cash flow far quicker than a dividend. Or, they could just pour money down the rat hole like MS has done.
Continued growth leveraging their current infrastructure and existing product lines makes a lot of sense. TV’s may be one and there are in all likelihood others that they are working on for a possible future release.
“It doesn’t signal an end of growth, it signals strength and confidence in the future. My opinion is that it is a positive. ”
Your opinion is shit.
“Throwing money away on large purchases of companies without similar cultures could very well pull down the high markup and cash flow far quicker than a dividend.”
Purchasing into new tech sectors would have a better benefit to Apple rather than throwing away money on you through a dividend. The acquisitions they have made in the last decade have been very smart and deliberate. Giving you a dividend makes no sense.
Dan.. Sell shares for cash. Save your verbage for the broker.
Really Dan?
The market doesn’t give a rats ass respect to any company “unless” said company is bending over for them.
So Apple needs to just ignore the market. As long as they keep making great products, Apple will do just fine.
Analyst are just pissed that they didn’t have any part in Apple’s rise to good fortunes.
Then your other comment,
“Throwing money away on large purchases of companies without similar cultures could very well pull down the high markup and cash flow far quicker than a dividend. Or, they could just pour money down the rat hole like MS has done.”
I believe past history on Apple’s purchases of other companies slams your statement shut quite well.
As Cook has said, they look very carefully at what to spend “THEIR” money on. What MS has done is worse than a drunken sailor.
My impression of TheStreet.com:
If it’s been said on TheStreet.com, don’t analyze whether they are right or wrong, look at what they are trying to convince people to do. They aren’t about reporting what is happening or even guessing at what they think will happen. They are about saying things, whether true, false, or unknowable, that will move a stock in a way they can take advantage of.
So, their “rightness” on any given topic about Apple is irrelevant, to them and to any informed reader. The only worth they have is if you think they have enough influence, see which way they are trying to push the stock, and plan accordingly. Pretty shady stuff, though.
Yea, there’s that. I just didn’t get into it today.
The other old rule, “Follow the money”.
Cramer and other Wall Street criminals would throw their own mothers under the bus to make another million.
I think a dividend would put an end to a lot of the manipulation of AAPL and the manipulators are pushing the no-dividend narrative and you guys are swallowing it hook line and sinker. How about when Apple has $200,000,000,000 will that be enough cash to pay a 3% dividend?
Greedy piglet thinks a dividend would put an end to a lot of the manipulation of Apple’s stock.. thanks greedy piglet. You are clearly stating BS for your own benefit, not Apple’s.
Sell shares for money fscuttle.
Greedy piglet? What do you invest for the novelty? What a clown you are.