OAAPL to pay dividend and to do a buyback. 100% return on the investment in the last 52 weeks is just not enough. The 52 week low was 300. Today's trading price: 600.
Microsoft found itself in the same junction back in 2004. With 50 billion in cash in the bank but a stale stock price, investors were screaming for some sort of return. Microsoft paid a one time dividend of 32 billion. This was probably the beginning of the split between Bill Gates and Microsoft. Bill Gates donated all his dividend to charity, and it probably led him to discover the impact he could have with charity instead of with Microsoft products.
AAPL has already been singled out as a tremendous anomaly requiring fund manager to exclude the stock from market analysis. With a growing stock price, a large dividend, increasing sales, and a buyback, it is hard to tell where it is going.
It is always the question of whether its product pipeline can continue propelling the momentum. The newest iPad seems to suffer from overheating. And even though the WSJ reports 55% of iPad users look to buy a second one to avoid sharing it within the family, it might be too soon for most users to replace their older model.
Then there are the other revenue streams which are too long to list. There is even 238 million from the profit sharing (18%) in the AppStore.
On the other hand, a curious fact surfaced this week. Sharp was delayed in the delivery of components bringing light to the fact that Apple is forced to rely solely on Samsung which is a direct competitor. While Apple rearranges the marketplace, there is a stream of suppliers and competitors who are not standing still and are reshaping themselves at the same speed.
When we add all this, we get 98 billions in cash, and a string of future market changers to follow.
