SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Elroy who wrote (149879)2/8/2013 12:55:37 PM
From: Kelly G.4 Recommendations  Respond to of 213173
 
Does someone want to dispute this? Go ahead, please provide the counter argument.
Not to dispute but how about adding some color.

I know a woman who is 95 years old which mean she essentially grew up during the Great Depression. She has penny pinched all of her life and has plenty of money now. But, every week, she goes to lunch with her daughters and makes them pay for it.

- Apple is like this old lady. It wasn't that many years ago that cash was a serious issue. And, just think if they had been able to higher better lawyers in their fight with Microsoft?

- The tremendous cash flow that Apple is experiencing is really a recent occurrence when you think about it.

- Apple may be considering major acquisitions or investments that we know nothing about.

- Apple is buying back shares already.

- Apple just began paying a dividend less than a year ago. As has been discussed here, any kind of one time dividend really doesn't do anything for the stock. But, and increasing dividend over a long period of time is the sign of a very healthy company. Entire portfolios are sometimes built on this "rising dividend" premise. I am sure Apple will raise their dividend over time but it won't be fast enough for those with a short term outlook.



To: Elroy who wrote (149879)2/8/2013 4:05:03 PM
From: Edward Boghosian  Respond to of 213173
 
Unfortunately the shareholders do not have an equal voice.



To: Elroy who wrote (149879)2/8/2013 4:08:00 PM
From: Doren1 Recommendation  Read Replies (1) | Respond to of 213173
 
> Does someone want to dispute this?

I like the idea of a dividend - I'm not sure about a perpetual dividend. I hope this doesn't snowball and destroy a prudent reserve.

As Kelly already said and I've been saying

- Apple may be considering major acquisitions or investments that we know nothing about.

I can't ever remember Apple making a huge investment. They've been pretty parsimonious with our money. But that doesn't mean they haven't been hoarding money for a big deal. I think Jobs hated the carriers and maybe the content companies. He was a hippie after all. Content companies - he already owned one. A big one. One that changed everything. TV is a big deal. Everyone has one.

Apple has done some pretty huge gambles. Like the iPod, iPhone and iPad. NO ONE thought those would be anywhere near the hits they are. They like to ponder for a long time, but when they strike they bet big. Who knows what they have in store. If they are going to buy a gazillion big screens for TVs that is going to take a chunk of money.

Interest rates are pretty low right now. A lot of people think that won't last. Some people don't remember peak inflation rates in the 1970s/1980s. I do. This interest rate thing is an historical oddity. May not last.