After taking the initial steps yesterday toward offering bonds to investors, Apple opened up its order book today and plans to sell $17 billion worth of bonds. The six-part all dollar offering has already attracted more than $50 billion of orders within the first few hours, in what has become the largest non-bank bond deal in history.
According to a report from Reuters, Apple is offering $17 billion worth of bonds in the following six bond types to investors:
Russian billionaire Alisher Usmanov has revealed that he recently spent $100 million on Apple shares in anticipation that they will rebound. The 59-year-old believes that Apple is a “very promising” investment, despite the current share price being almost 40% off its peak last September.
Last week, Apple announced its plans to return $100 billion in stock to investors over the next few years. The increase more than doubled Apple’s original capital return program of $45 billion. Quarterly dividend payments also increased 15%, or $3.05 per common share.
Apple may have a huge cash pile, but even the world’s most valuable company will have to go into debt to finance a return program of this size. It’s the first time Apple has borrowed since 1996.
Apple just released its Q2 2013 Financial results, and even though Apple beat its own estimates, Tim Cook started the Quarterly Financial Call on the defensive.
Cook started the call by explaining how exceptional Apple’s 2012 financial results were for Apple, so it’s hard for the company to improve sales this quarter. Then Cook commented on Apple’s struggling stock price by saying he’s “very frustrated” with the stock’s declining value the last few quarters, but they’re staying focused on the future.
Hoping to appease investors, Apple announced today that it will payback $100 billion to investors by 2015. Apple has yet to release a major product in 2013, but Cook reassured investors that Apple can’t wait to release new hardware and software this Fall and throughout 2014.
I’ve been writing for Cult of Mac for almost three years now, and in that time I’ve covered some pretty farfetched Apple rumors. But the latest from Forbes comes with a whole new level of crazy.
“Some Wall Street sources close to some Apple executives” say the Cupertino company could be searching for a replacement for Tim Cook, it claims, before suggesting Cook could turn Apple into another Hewlett-Packard or JC Penney and insisting “Apple’s shine has faded” since the passing of Steve Jobs.
Earlier today, we reported that the Wall Street consensus was that Apple’s profit in this last quarter probably shrank for the first time in a decade, and that results will be even more dire next quarter, with iPhone sales units being extremely low.
But Wall Street’s pessimism in regards to Apple is, as usual, nuts. For Apple to perform as low as Wall Street thinks it will next quarter, Apple would have to show zero growth in the iPhone market compared to the same spring quarter a year ago. This would rank it as one of the smartphone industry’s worst disasters ever. Which is crazy, because Apple’s selling more iPhones than ever.
Apple’s share price may be falling quickly at the moment, but company co-founder Steve Wozniak is confident it’ll rise again thanks to future products that will “surprise and shock us all.” Speaking at the Login technology conference in Vilnius, Lithuania, Woz said “the stock price is a little low right now,” but notes that industry profits “are still with Apple.”
Earlier this morning Apple shares were trading below $400 for the first time in over 16 months, as the stock has continued to slide from its high point of over $700 per share that it enjoyed just last year.
Securities trader David Miller has pleaded guilty to fraud after buying $1 billion of Apple stock without permission and bringing down his company. The 40-year-old purchased 1.625 million Apple shares on the day the Cupertino company reported its third-quarter results in October 2012, hoping that he’d be able to make a profit when the share price rose.
Instead, the share price fell and Miller’s gamble backfired, sending Rochdale Securities under.