“Apple is a whole lot different under Tim Cook than it was under Steve Jobs, in more ways than one,” Evan Niu writes for The Motley Fool. “One of the more prominent ways, which is particularly relevant for shareholders, is how Cook values investors’ role as stakeholders. Jobs always viewed shareholders with measured disdain, considering them a necessary evil for any public company. On the other hand, Cook very much values their opinion on corporate matters.”
“That also includes making somewhat regular media appearances to defend the iPhone maker’s business and future innovation,” Niu writes. “(Can you imagine Jobs talking to Jim Cramer on Mad Money?) But talk is cheap, and actions speak louder than words.”
“That’s the message that Bernstein analyst Toni Sacconaghi has for investors. In a recent research note, Sacconaghi points out that Cook’s numerous media appearances over the years, many of which are intended to reassure investors, have not correlated with share performance in any meaningful way,” Niu writes. “In contrast, Apple’s buyback activity has been quite telling. Citing the old saying, ‘Do what they do, not what they say,’ Sacconaghi finds a strong correlation between large repurchase activity and outperformance.”
Read more in the full article here.
MacDailyNews Take: Debt-backed buybacks are basically free money and $14 billion seems to be the magic number for quarterly buybacks, at least historically.
Bernstein: Apple buybacks matter more than CEO Cook’s media appearances – May 9, 2016
Apple resumes share buybacks, to benefit from beaten down price – April 29, 2016
How Apple’s massive debt-powered buybacks actually save the company money – December 28, 2015