Greenlight's David Einhorn has been lobbying Apple for the last year to issue a special class of stock to reward shareholders and as a way to distribute the enormous
pile of cash Apple has on its balance sheet.
Not exact matches
But
Apple has come under pressure from naysayers who believe the company will flounder without a steady stream
of category - creating new devices and investors unhappy with its humongous
cash pile.
5) Dilution: Although
Apple has a large
cash pile, most
of that is held offshore, and therefore the company would likely have to issue debt in order to acquire Netflix for $ 50 billion.
Apple's gargantuan net income has
piled up over the years, resulting in a
cash reserve
of $ 267.2 billion as
of the March quarter.
SAN FRANCISCO — Since
Apple said in January that it would bring back most
of the $ 252 billion it held abroad under the new tax law, investors have wondered what the company would do with the enormous
cash pile.
This quarter, youngsters,
Apple's
pile of cash really fell.
These styles
of returns are fairly average with greater agencies that generate a ton
of cash —
Apple already had some buyback courses in place, as an instance — but investors have all the time dinged
Apple for not deploying its large
pile of cash.
When it comes to
Apple, two topics constantly get discussed: The next product or idea it's working on and the size
of its
cash pile.
In its earnings report Tuesday,
Apple Inc. again detailed a giant
cash pile, with Chief Executive Tim Cook crowing
of having «the mother
of all balance sheets.»
The problem with
Apple's «
cash pile» is that most
of it is not actually «
cash» nor «on hand,» and it doesn't take into account
Apple's debt.
Also, the net worth
of Barnes & Noble right now is just $ 1 billion which can be considered a short change when compared against the massive $ 76 billion
cash pile Apple is sitting on right now.
Apple will use proceeds from the debt sale to fund the buyback and presumably avoid taxes rather than tap into its $ 150bn
cash pile; returning it to the U.S. could lead to a tax charge
of up to 35 percent.
Apple must take care to only cater for their needs and their needs only - there is a tendency for those dominating an industry or product line to attempt to «starve the competition
of oxygen» by monopolising the global manufacturing inventory using their humongous
cash pile to make advance orders - karma is a harsh and unforgiving vixen when least expected to be... a word is enough for the wise.