A Broken Company

[SeaKing]

Originally Posted by rdfry

I understand that they aren't going to go broke overnight, but that doesn't mean they won't in the future. Google does come up with some interesting ideas.

I have been wondering how much stock Apple has bought back to help maintain the price.

[porkupan]

Originally Posted by SeaKing

I have been wondering how much stock Apple has bought back to help maintain the price.

And I have been wondering if you were wondering because you really know something, or because you just desperately want to badmouth Apple. And I do suspect the latter.

[murraypaul]

Originally Posted by SeaKing

I have been wondering how much stock Apple has bought back to help maintain the price.

http://www.apple.com/pr/library/2012...e-Program.html

CUPERTINO, California—March 19, 2012—Apple® today announced plans to initiate a dividend and share repurchase program commencing later this year.
[...]
Additionally, the Company’s Board of Directors has authorized a $10 billion share repurchase program commencing in the Company’s fiscal 2013, which begins on September 30, 2012. The repurchase program is expected to be executed over three years, with the primary objective of neutralizing the impact of dilution from future employee equity grants and employee stock purchase programs.

[fjtorres]

Originally Posted by rdfry

Google does come up with some interesting ideas.

Indeed.
But interesting doesn't mean revenue-generating.
Or even "finished product".
They dabble a lot but fully commit to very little.
They can afford it but it is a rather undisciplined way to spend their ad money bounty.

[DuckieTigger]

Originally Posted by porkupan

And I have been wondering if you were wondering because you really know something, or because you just desperately want to badmouth Apple. And I do suspect the latter.

What is so bad about going private?

[porkupan]

Originally Posted by DuckieTigger

What is so bad about going private?

Nothing. But claiming that the reason why AAPL stock is still "at the heights" of $450/share and not in some dumpster (where it perhaps belongs) is that Apple has been busy propping it up via some quiet stock repurchases doesn't go beyond my definition of badmouthing.

If you want to speculate that Apple is going private, go ahead. If that were the case, I would expect AAPL stock to be twice the value it is today.

[DuckieTigger]

Originally Posted by porkupan

But claiming that the reason why AAPL stock is still "at the heights" of $450/share and not in some dumpster (where it perhaps belongs) is that Apple has been busy propping it up via some quiet stock repurchases doesn't go beyond my definition of badmouthing.

I read "maintain" in SeaKings post. That goes both ways in my book. Not to prevent it from falling is one way, so not to appear weak. Not to let it go unrealistically high again is the other positive effect. Even if one does not like Apple, it is still a smart way of removing hype out of the question.

If you prevent going unrealistically high prevents a deep fall afterwards.

[Penforhire]

C'mon guys, AAPL's market cap today (at its depressed price) is $429B. Even they do not have nearly that much money lying around.

[HansTWN]

Originally Posted by Penforhire

C'mon guys, AAPL's market cap today (at its depressed price) is $429B. Even they do not have nearly that much money lying around.

Yes, just dropped to number two a few days ago, as Exxon again became the world's biggest company.

But I wouldn't call Apple's current price "depressed", more like "still inflated, but getting closer to a realistic level".

[fjtorres]

Originally Posted by HansTWN

But I wouldn't call Apple's current price "depressed", more like "still inflated, but getting closer to a realistic level".

Ding! Ding! Ding!

BTW, stock repurchases equal to employee stock options is a common gimmick to (gasp!) reduce employee tax bills.

(If they gave the bonus to the employees as money it gets taxed as income. If they get stock options at very low price, the employees get the bulk of the value taxed lower, as a capital gain, when they sell the stock.)

So instead of giving the bonus in cash, they give them stock and then buy it back at market price. Sharehoders don't get their equity diluted, the employees get a few more nickels to rub together and the taxman grinds the teeth: "Curses! Foiled again!"

[HansTWN]

Originally Posted by fjtorres

Ding! Ding! Ding!

BTW, stock repurchases equal to employee stock options is a common gimmick to (gasp!) reduce employee tax bills.

(If they gave the bonus to the employees as money it gets taxed as income. If they get stock options at very low price, the employees get the bulk of the value taxed lower, as a capital gain, when they sell the stock.)

So instead of giving the bonus in cash, they give them stock and then buy it back at market price. Sharehoders don't get their equity diluted, the employees get a few more nickels to rub together and the taxman grinds the teeth: "Curses! Foiled again!"

Oh no! Didn't you realize that for most Europeans legally lowering your tax bill (even if it is 75% like in France now) is an offense 100 times more despicable than cold blooded murder？

[fjtorres]

Originally Posted by HansTWN

Oh no! Didn't you realize that for most Europeans legally lowering your tax bill (even if it is 75% like in France now) is an offense 100 times more despicable than cold blooded murder？

I'm aware of it.
(shrug)
They're entitled to their opinions and their social contract.
Just as they are entitled to move to belgium or pick up a russian passport.
(I happen to agree with Von Hayek. Let's leave it at that.)

[SeaKing]

Originally Posted by porkupan

And I have been wondering if you were wondering because you really know something, or because you just desperately want to badmouth Apple. And I do suspect the latter.

You seem a little sensitive on that point. Is it because you know something or is it something more "desperate" to use your own word?

By the way see Murray Paul's post about this right below yours.

[SeaKing]

Originally Posted by HansTWN

Oh no! Didn't you realize that for most Europeans legally lowering your tax bill (even if it is 75% like in France now) is an offense 100 times more despicable than cold blooded murder？

These days that kind of European thinking is also popular in San Diego.

[afv011]

Originally Posted by porkupan

Nothing. But claiming that the reason why AAPL stock is still "at the heights" of $450/share and not in some dumpster (where it perhaps belongs) is that Apple has been busy propping it up via some quiet stock repurchases doesn't go beyond my definition of badmouthing.

If you want to speculate that Apple is going private, go ahead. If that were the case, I would expect AAPL stock to be twice the value it is today.

Can you show me where SeaKing said so? No? Thought so.