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

To: J R KARY who wrote (24995)	5/28/1999 4:03:00 PM
From: earlyj	Read Replies (1) \| Respond to of 213182

it appears Moody's also does NOT favor a stock buyback biz.yahoo.com "The ratings are additionally influenced by some uncertainty relating to Apple's use of its estimable cash and short term investments, over $2.2 billion of which were funded over the past three years from inventory and receivables adjustments. The company's cash management policy is evolving, but the magnitude of available cash could lead the company to succumb to pressure from its shareholders, and engage in activities that would be inimical to bondholder protection. Moody's is concerned over the degree to which cash may be applied toward a possible stock repurchase program for the purpose of buttressing the price of the common stock, recently trading at about $42-44 per share, or of averting shareholder dilution stemming from the exercise of common stock options. We believe that the company must exercise considerable discretion in drawing from its fulsome cash position, establishing a minimal liquidity threshold to respond to unexpected and sharply graduated research and development funding requirements."