“Apple (AAPL) reported Q2 earnings after the bell today, and I’m impressed by the numbers, the tone of the conference call, and the shareholder value being unlocked,” Quoth the Raven writes for Seeking Alpha. “More so, I’m impressed with Tim Cook’s sentiments and Apple continuing to recalibrate the market and continually politely remind us that a company with $140 billion in the bank is about as stable as you can get for the long term.”
“I’m maintaining that there hasn’t been a better time to go long Apple, and I think this earnings call is going to be the catalyst to not only find a serious support level at $400, but move up from there,” Raven writes. “Here are some of the reasons why, from the earnings conference call this afternoon, Apple is a fist-pounding buy.”
1. Massive $60 Billion Buyback: Apple is doing what CFO Peter Oppenheimer described on the conference call as the largest share buyback in the history of the stock market. Apple is upping its $10 billion buyback to $60 billion, which at today’s market prices, would represent about 16% of the outstanding shares. The adjusted share price to maintain market cap would put the stock somewhere around $464 today, based just on the news of the buyback.
2. Dividends Increased 15% to $3.05/Share: OK, so 15% isn’t a massive dividend increase, but annualized, it’s enough to make a difference.
3. More Cash in the Bank
4. EPS and Revenue Beats
5. iPhone and iPad Numbers
6. Record Sales from iTunes Store
7. New Products Coming This Fall
Much more in the full article here.
Piper Jaffray’s Munster: Apple’s going into a good year – April 23, 2013
Apple opens bank vault to dole out $100 billion to shareholders; $60 billion in buybacks the largest in history – April 23, 2013
Debt-free Apple plans to borrow to finance massive capital-return program – April 23, 2013
Apple beats Street on EPS and revenue; ups quarterly dividend by 15%; ups buybacks to $60 billion – April 23, 2013
If Steve Jobs were alive he’d do another buyback instead of upping dividend – March 18, 2013