Friday, April 26, 2013

AAPL: Apple Exits The Steve Jobs Era, Bets On Engineering Of The Financial Kind

Apple Exits The Steve Jobs Era, Bets On Engineering Of The Financial Kind
by DoctoRx

Apple Inc. (AAPL) has made it official: it has moved on from Steve Jobs (SJ). SJ was against stock buybacks. Apple has now dramatically announced that it is launching the largest one in history, tens of billions of dollars worth over the next few years. Not only that, for tax reasons it's going to borrow part of the money to do so, even though it has cash and marketable securities on its balance sheet that far exceed even the total buyback. This doesn't mean that the Jobs point of view was optimal, but it was a strongly-held one. The initial Apple buyback implemented last year was merely to "sterilize" employee options grants, so it's hard to see that he would have vigorously opposed that on, but by announcing this immense one, the implication is clear: this is a new Apple. It's going to be more investor friendly based on the preferences of this era. read more »

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