Chief investment officer of Gamco Investors, Howard Ward, today said that Apple is planning to reveal its plans for what to do with the enormous amount of cash by next month. Apple needs to respond to growing criticism over what it’s doing with its $137.1 billion in cash and investments, not to mention the $42 billion in earnings investors expect Apple to add in 2013, says Ward.
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This week on The CultCast—finally—it’s time to talk iPhone 5S and iPad 5! We’ll tell you why April and August might be bringing you the tasty new iDevices, and if they’ll be drastically different than the models we’ve already got.
Then, is Apple is a innovation lull? Ex-Apple CEO John Scully thinks so. We’ll tell you what we think is really going on.
Show notes up next!
Famed investor and philanthropist Warren Buffet stopped by CNBC’s Squawk Box this morning, and the Berkshire Hathaway head had some interesting thoughts on what Apple should do with its cash: by back all of its stock from investors, just like Warren Buffett told Steve Jobs to do years ago.
Over the last couple of weeks a ‘silly sideshow’ has been playing out between Greenlight Capital and Apple Inc. Greenlight Capital’s CEO, David Einhorn, has been trying to force Apple to offer preferred stock plans by suing Apple in court, while Tim Cook and Apple disagree with his proposals.
Even though Einhorn has won at least one small victory over Apple in court, it’s been reported that Greenlight Capital just dropped their lawsuit against Apple.
According to a newly-posted shareholder document, Apple now requires executive officers to own three times their annual salary. The CEO is still required to hold ten times his own annual salary in stock, as well.
This current move, as reported by the Wall Street Journal, comes a month after Apple’s board actually opposed a similar measure proposed by a shareholder.
Rumors are swirling that Apple, a company which has been having a rocky time on Wall Street lately despite reporting their most profitable quarter ever, might announce a decision to issue a stock split tomorrow at their next shareholder meeting, to be held tomorrow.
With AAPL stock in decline, investors are rioting to get a piece of Apple’s $137.1 billion cash horde. Greenlight Capital’s David Einhorn, of course, has been making waves with his lawsuit against Apple and his proposal that Apple issue an ‘iPref’ preferred dividend to investors; now, Morgan Stanley Katy Huberty has come out of a meeting with Apple CFO Peter Oppenheimer, apparently convinced that Apple will more than double its existing dividend to investors to 6%.
If you’ve been up on your Apple news the past few months, then you’ve probably heard about a “silly sideshow” that been going on about Apple’s stock. Basically, Greenlight Capital isn’t happy with the amount of cash their getting back on their investment in Apple, while Apple has been hoarding all their cash.
Hoping to convince Apple to give shareholders some of their cash, Greenlight Capitals found, David Einhorn, has a concocted a plan that would have Apple selling “iPref” stock to investors who want to eat Apple’s cake.
Greenlight Capital’s David Einhorn is a very influential Wall Street investor who is going after Apple for proposing to allegedly eliminate preferred stock options from AAPL shareholders. Apple recently started issuing small dividends to investors, and preferred stock would entitle investors to fixed dividends instead of the fluctuating common-stock dividends.
Einhorn and Greenlight Capital will hold a conference call today with interested Apple investors to discuss their ideas on how Apple should use its massive cash pile.
It’s hard to forget the day that Apple surpassed Exxon Mobil to become the most valuable publicly traded company in the world. But a lot has happened to Apple’s stock since August of 2011. AAPL has ridden a chaotic roller coaster on the stock market. After announcing a record holiday quarter Wednesday with $54.5 billion in revenue and $13.1 billion in profits, AAPL dropped more than 10%. That’s more than $50 billion in market cap gone in a day. Poof.
Apple’s stock isn’t doing so hot, and after over a year in second place, today marks the day that Exxon Mobil dethroned Apple on Wall Street.
And that’s ok. This doesn’t mean that the company is doomed.