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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?


To: aaplAnnie who wrote (149819)2/7/2013 12:47:21 PM
From: Stock Puppy1 Recommendation  Respond to of 213173
 
I would like to see Apple do something whit its pile-o-dough but this article is a pile-o-carp.
I agree - something smells fishy!



To: aaplAnnie who wrote (149819)2/7/2013 2:30:44 PM
From: Moonray1 Recommendation  Read Replies (1) | Respond to of 213173
 
I would like to see Apple do something whit its pile-o-dough but this article is a pile-o-carp.





I would like to see AAPL do something more constructive with the money, also.
It wouldn't have to be returned to stockholders directly as far as I am concerned.
Since so much of it is overseas, I think they should go on a small company buying
binge, obtaining more component manufacture's of their products.

o~~~ O



To: aaplAnnie who wrote (149819)2/7/2013 2:58:12 PM
From: slacker7112 Recommendations  Read Replies (2) | Respond to of 213173
 
Choosing to hoard cash rather than buy back shares or pay dividends is a choice to preserve the fortunes of management at the expense of shareholders. No doubt many long-term Appleshareholders are fine with this, because their returns have been spectacular.


That's absurd. The money does not belong to them. That doesn't make any sense.



It does make sense. Management's interests are best served not by maximizing shareholder return but by avoiding any possibility of a disaster. They dont have balanced portfolios. Their jobs, wealth, and reputation are tied up with Apple. So, the obvious course is to hold onto huge amounts of cash to help avoid the possibility of a disastrous outcome. Apple isnt unusual here, the vast majority of large cap tech hold way too much cash on their balance sheet.

Unfortunately, the safest route isnt usually the best way to maximize shareholder returns.

Slacker