“For investors who think Apple Inc. shares are too rich for its prospects, it is worth noting that Apple’s cash balance is likely to be over $250 billion when it reports earnings for the most recent quarter, a number never matched by any other company,” Douglas A. McIntyre writes for 24/7 Wall St. “That is $50 a share against a stock price of $144. Apple has just over 5.3 billion shares outstanding.”
“Some of the value of the cash is offset by debt, which was $75 billion at the end of the September quarter, but much of this is not due for years or even decades,” McIntyre writes. “Some of Apple’s debt does not mature until 2045. Additionally, as Apple’s cash balance grows, the value of the debt becomes a non-issue.”
“When the cash per share is deducted from the share price, Apple’s stock value is well below $100,” McIntyre writes. “As Apple’s cash position tops $250 billion, the defense of the value of its balance sheet becomes even more difficult.”
Read more in the full article here.
MacDailyNews Take: Let’s get the repatriation out of the way first. Surely Apple has plans for dealing with their massive “problem” of generating oodles of money.
My favorite things in life don’t cost any money. It’s really clear that the most precious resource we all have is time. — Steve Jobs