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Media: Apple will pay shareholders $ 200 billion
The success of the sixth-generation iPhone will bring the mountain of money, not only Apple, but by the shareholders, according to Vestifinance with reference to the bank Credit Suisse. According to the forecast of the Swiss, “fruit” company increased the volume of share repurchases and dividends.
Positive expectations Credit Suisse analyst Kulbinder García announced that the first thing raised its forecast for the exchange dynamics Apple with a “neutral” to “outperform.” Until now, the purpose of the bank’s securities Apple has been fixed at $ 110, but now this mark is passed, and it was decided to improve the expectations of up to $ 130.
Of course, the reason for the increase forecast was not the actual achievement of the target level, and especially impressive sales results of the latest smartphone Apple. Swiss bank separately notes that demand is a model with a built-in memory of 64 GB, which costs consumers $ 100 more expensive than the starting and Apple provides excellent margins.
The second reason was the forecast that business Californian giant this year will take care of its shareholders. In 2013, we launched one of the largest in the history of the share buyback program, in which the end of 2015 for these needs will spend $ 60 billion. In addition, there was the promise to spend $ 40 billion on dividends. In 2014, the share buyback was expanded to $ 90 billion, which increased the overall assessment of the program to $ 130 billion.
But at Credit Suisse believe that in the coming year, Apple will be even more generous. Huge sales and high margins provide stable growth stocks cache. Despite all the programs to encourage shareholders during their action cushion increased from $ 137 billion to $ 155 billion. Sitting on that money is meaningless, so that they are supposed Kulbinder García, will be spent on the stock exchange rally support Apple.
For three years, Apple may expand the program to inject the cache in dividends and stock buybacks to $ 200 billion. With an annual volume of generated free cash flow of about $ 50 billion these figures do not seem crazy.
At $ 200 billion in theory could buy back from the market all Facebook, capitalization is $ 214 billion, or half of Exxon Mobil, with its $ 381 billion. Tesla Motors could buy almost ten times in a row. Although these comparisons do not have a special meaning, they give an idea of the potential of Apple as a market maker.
To provide long-term growth of its shares Apple can own without the positive market conditions. In theory, even a decline in sales will not stop the corporation that will for a long time to pour cash into its stock market capitalization. Thus business is being protected from increased volatility in the shares in the case of the publication is not too good reporting. But the strategy may involve the exchange and slower growth in prices. While it is only the opinion of Credit Suisse.
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