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Technology Stocks : Apple Inc.
AAPL 278.49+0.5%12:05 PM EST

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To: Win-Lose-Draw who wrote (78566)10/5/2008 3:44:28 PM
From: Cogito  Read Replies (1) of 213176
 
>>The purchase money is effectively a bridge loan, secured against the assets (in this case cash) that you don't yet technically own. This used to be done all the time, there used to be so many buy-out raids companies would intentionally keep their cash holdings low so as to avoid becoming a target.<<

WLD -

OK, I can see how that would work.

But there's still the fact that Apple has about 22.5 billion in cash, and at a stock price of 50, the company would have a market cap twice that. The present market cap is 85 billion, even after the past couple of weeks.

You mentioned Dell as a possible buyer, but I don't think so. Their current market cap is 29 billion. I can't see them doing better than Apple over the next year or so. Beyond that my crystal ball gets pretty fuzzy.

- Allen
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