Apple resumes share buybacks, to benefit from beaten down price

“Apple will resume its share buyback program on Friday, following a mandatory period where the program was suspended,” MacNN reports.

“Following Apple’s relatively disappointing fiscal Q2 earnings report for the period January to March, the company’s stock took a battering, wiping around $40 billion from its market cap,” MacNN reports. “However, with share prices dipping down to its lowest level this year, Apple is poised to take advantage of any turnaround that it is able to engineer in the short to medium term.”

“Immediately following its Tuesday earnings call, Apple’s shares tumbled from $104 to $96 when trading opened on Wednesday,” MacNN reports. “They have subsequently dived further to $94 on activity investor Carl Icahn who announced that his company had divested itself completely of Apple stock.”

Read more in the full article here.

MacDailyNews Take: Buy ’em while the buying’s good!

SEE ALSO:
This holds the key to timing Apple share purchases – April 29, 2016
Apple stock falls as Carl Icahn dumps all of his shares – April 29, 2016
Why Apple needs more hardware hits – And, has Tim Cook lost his focus? – April 29, 2016

9 Comments

  1. Buying back sh*tty stock is an exercise in futility. Frankly, coming from Tim Cook, I would expect nothing less.

    The Bible summed it up perfectly in Proverbs: “As a dog returns to his vomit so does a fool return to his folly.”

    1. As a long term investor in Apple, I’ve witnessed any number of these ‘catastrophic’ downturns in AAPL and on many occasions have been able to buy extra shares during these downturns.

      I sold a lot of my shares in the late summer of 2012, when the price was pretty high and the proceeds largely paid for the lovely house that I’m now living in. No rent or mortgage for me thanks to the roller coaster nature of AAPL.

      It’s always been like that and probably always will be. The dividends now being paid are an extra advantage. For many years there was no dividend at all.

      1. Share repurchase program was the one single most heavily demanded action by the shareholders. Everyone everywhere kept pressing and pressing and pressing — Use those billions, Apple, buy back your shares!

        Then, again, of course, everyone was expecting that the result would be a continued rapid growth of the stock. Unfortunately, nobody expected that the Law of Large Numbers would hit them like a brick. In the end, the reality is this: no matter how low the P/E, how high the profits, how strong the prospect of a massive growth in China, with Apple Car, or whatever else may be on the horison, AAPL has no room to grow because it is simply too big, and the rational thinking on Wall Street is that, since it is the biggest market cap any company ever had at any point in history, that’s it, no more growth, so time to sell. In a few years, P/E will reach 5 (currently, it is around 10. And the stock will still be $100 – 120.

        AAPL hit the wall of large numbers and that’s the end.

        1. Mind you, the ‘Law of Large Numbers’ is often used in the investment parlance incorrectly. The actual law has nothing to do with something becoming too big in order to expect to continue to grow; it relates to probability and averages.

          1. Maybe they should buy back all of their stock and make it a private company. This way they won’t have to listen to people like Carl Icahn telling them what to do and we can buy their products.

      1. It’s funny, bloodypecker. You seem to think of yourself as an expert in corporate finance, but you never predicted the latest Apple stock drop. Apparently, your knowledge of Apple history is skewed and you intelligence regarding Apple stock woefully as miserable. You have a lot of nerve to criticize someone when your own ignorance and stupidity is evident.

        1. I’ve been an Apple stock holder since 2000 (making a killing) and know a thing or two about it’s history and roller coaster stock ride. I have followed Apple since the beginning in 1976.

          I would say your technology, corporate and stock knowledge is on par with a newborn’s. And your witless moronic criticism’s without anything insightful to back them up only show you up to be the bloody mindless buffoon you are. You offer nothing except TC hating vitriol and assholiness. Which means essentially you’re a born bloviating implacable loser. Grow up jerk.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.