Monday, March 25, 2013

AAPL: Apple Must Send The Right Message

Apple Must Send The Right Message
by Markos Kaminis

Apple's shares ran up into last week mostly on expectations around the one-year anniversary of a dividend announcement. However, I believe a significant dividend event would be disastrous for Apple (AAPL) shareholders, because of the message it would send. The message would be that Apple has changed from innovator to mature company, and its valuation and investor expectations about its future would be appropriately adjusted. In fact, I believe that a significant return of capital to shareholders would serve to cement the sub-$500 stock price and validate the deeply discounted PEG ratio that the shares trade at. Other capital measures would be more value added, but in the end, I still believe the company's future value will depend on its forward product innovation. read more »

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