Gamco’s Haverty: Apple board can be sued over excessive accumulation of cash (with video)

Larry Haverty, portfolio manager at Gamco Investors, discusses possible lawsuits against Apple’s board if they don’t act on accumulation of cash.

He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

I gotta think that the [Apple Inc.] Board is going to do this, or someone is going to sue them pretty quickly… Someone is going to sue them for excessive accumulation of cash.

… They’re going to have to come up with a low-cost phone because the market in China is in the neighborhood of $100-$200 per smartphone and it’s a mind-boggling market… The country loves these products, they love the Apple products, but the mass market can’t afford $600-$700 products.

The thing about the Apple juggernaut, why it continues… it’s the dominant platform in the phone and in the tablet [markets] and the apps are going to be developed for it and it becomes symbiotic… keeping people in the ecosystem. So, when you can get this for five times cash flow [!]… five times cash flow – trailing! – If you can get this for five times cash flow, the cash in going to build up, and you have this obsolescence with these products, and the people who love the products are going to replace them. It’s like Coca-Cola. – Larry Haverty, Gamco Investors

Direct link to video here.

18 Comments

  1. QUICK. QUICK…. We must kill the Golden Goose!
    It lays GOLDEN eggs (hardware, software, dividends) for us all yet for a quick surge of money, we must kill it and get its current Golden eggs.

    No good deed goes un-punished. Golden eggs for us means the death of the goose that laid them. So it is written in history. Quick kill the goose. Pollute the water, Fill the sky with poison smog (in someone else’s back yard) so that I may have my “gold” today.

    What is it with these people?

    Just a very bad, very sad thought.
    en

  2. How about we sue this clown car driver for simple stupidity.
    The world is going nuts. Simply because some person or a company has more money than you does not mean you are entitled to it.

    Stupid jerk, just don’t buy the stock if you are offended.

  3. And when Apple makes fantastic in Q4 gross revenue but with slightly reduced profit margins, they get hammered by WS because of the latter. Now they’re shouting for a cheapo (low margin) phone!!!

  4. Ignore these idiots. Think big and think revolutionarily. Just like Steve did. That cash is a powerful load of potential energy.

    Remember when most of the worlds’ gold was in Fort Knox?

      1. Got 1,650 at 45 bucks, then kept adding as possible, never sold a single one,,, up to 2,372 shares now….

        too bad it is in my 401K rollover, and too bad i cannot buy AAPL with my 401K funds that are still relegated to mutual funds, i know it would be a wise investment at this price point

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