Apple Wealth of 51 Billion Investors Worry Jobs Health
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Market value as the third largest U.S. company, Apple currently holds the hands of 51 billion U.S. dollars in cash and cash equivalents. Although this year, Apple has received through the investment portfolio of 1.8 billion dollars in book income, far exceeding last year's $ 57,000,000. But in the past year, Apple's poor investment return rate is only 0.75% yield and the average American is not a savings account. Some investors said that Apple CEO Steve Jobs (Steve Jobs) should be a better use of their cash holdings. The following is a summary of the article:
Apple currently holds 51 billion U.S. dollars in cash and cash equivalents, but the return on investment of these funds and even less than the average American savings account. Some investors said Apple CEO Steve Jobs, the need for better use of their cash holdings.
Apple last week with the U.S. Securities and Exchange Commission reports show that in the past fiscal year, the company's investment return rate of only 0.75%. In the same period, investment in the S & P 500 index or if the Dow Jones Industrial Average index, return on investment can reach about 10%. Apple's stock was a better investment products, the same period rose to 60%.
Apple CEO Steve Jobs said last month, the company has been using has a good record of cash, the company cash to one or more "strategic opportunities" and will not consider dividend or repurchase shares. But for some investors, although Apple is not a premium large-scale mergers and acquisitions, but the company's cash reserves, with much of the killing power there, especially considering the company's balance sheet last year added about 17 billion cash.
Investment Company Capital Advisors Keith Goddard, president and CEO (Keith Goddard), said, "Apple is far more than cash held should be held level. For Apple, to obtain new business through the acquisition of real shame. "
Health concerns
Jobs's ability to govern with respect to, Goddard is more concerned about is that if Steve Jobs left for health reasons, Apple may be what happens. He said, "Let the different management team in charge of all the current assets, which makes me even more nervous."
This year, Apple stock rose to a 44% cumulative. Since the iPhone, launched in 2007, Apple shares have more than tripled. As the third largest market capitalization of U.S. companies, this year, Apple has been obtained through the investment portfolio of 1.8 billion dollars in book income, far exceeding last year's $ 57,000,000.
Apple currently has sufficient funds for large dividends, repurchase stock, or spend billions of dollars to buy without having to worry about the company will have debt. Bloomberg statistics show that in the S & P 500 companies, but not in the highest cash dividend companies, Apple ranks fifth. In addition, Apple has not made an amount of more than 500 million U.S. dollars in mergers and acquisitions. Analysts and investors have said the biggest possibility is that Apple will use the cash to invest in new products, and maintain small-scale mergers and acquisitions for technology and technical personnel.
Discipline
Jobs at the October 18 conference call with analysts said, "We direct the use of strict discipline in cash, we have demonstrated this point very good CV. We will not see a hole pocket , it will not be stimulated, the stupid acquisitions. So I think we will continue to keep hold of the cash, because we feel the market has one or more 'strategic opportunity'. "
Compared with Apple, and other large technology companies are constantly using their cash dividends or repurchase stock. As the world's largest software maker, Microsoft in September to raise dividend by 23%. In addition, Microsoft is accelerating repurchase shares, but the difference is that with Apple, Microsoft is relying on debt, rather than their own cash to buy back shares.
The world's largest network equipment maker Cisco announced in September this year, the company will be payable, which is the first time Cisco dividend since listing. The difference is that with Apple, either Microsoft or Cisco, have suffered share price fall this year, forcing companies to find other ways to reward investors. |
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By :
Jessie Stone
Submitted
2010-11-11 05:40:22 |
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