If markets worked like they used to, AAPL would be one he$$ of a short, IMHO as always, LOL
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Another sizable move today (albeit on low volume) for the market after Apple announced its plans to spend $10 Billion a year on dividends and buy back $10 Billion in stock. From Bloomberg (emphasis mine),
Apple Inc. (AAPL) will pay its first dividend in 17 years and buy back $10 billion in stock, heeding investors who urged it to return part of the $97.6 billion in cash amassed by robust demand for iPhones and iPads.
Shareholders will receive a quarterly dividend of $2.65 a share starting in the period beginning July 1, Cupertino, California-based Apple said today in a statement. The buybacks will begin in the fiscal year starting Sept. 30 and happen over three years, the company said.
...The dividend will cost Apple about $10 billion a year and represents a yield of 1.8 percent on the stock’s March 16 closing price.
Personally I think this is bad news for Apple. The company boasts a market cap above $500 Billion because of its products, not because of a dividend. I feel like new CEO Tim Cook is already trying to think of ways to keep the stock at a lofty valuation long term because he knows Apple does not have a successor product to the iPad.
Simply put, there is nothing in the works that will keep the innovation train rolling.
Spending $40 Billion in CASH over three years is Tim Cook's way of saying, "I am not Steve Jobs. I have no vision for new products or for driving future growth through innovation. My roll is to maintain what Steve created to the best of my abilities."
Apple's brightest days are over
Three years from today the probability of Apple stock trading at a valuation of $560 Billion where it closed today is slim. Anyone buying the stock from this point forward has to acknowledge the fact that the leader of the helm has admitted they are nothing more than a baby sitter for Steve's legacy.
Just like how the Government has
http://www.stocktradingtogo.com/2012/03/19/tim-cook-given-up-apple-stock-aapl-failure/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Stocktrading101+%28StockTradingToGo%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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