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 Technology Stocks : Apple Inc.

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To: Jonathan Bird who wrote (24960)5/25/1999 3:28:00 PM
From: Eric YangRead Replies (3) of 155590
 
"For it to really benefit us AAPL needs to do something productive with all that cash that will become free and clear. Otherwise it's just siting there damaging our ROE."

Jon, I agree. I think we're waiting for that other shoe to drop. The conversion of the notes isn't all that exciting. What makes it interesting is that it made it far more likely for Apple to implement a stock repurchase plan later in the year.

We all know what that would do to Apple's share price and I'm sure no one here would complain. But even if we disregard this positive impact on Apple's share price, such a move will actually benefit Apple financially. I outlined the reasons for this on RB the other day.
ragingbull.com 

A relatively large portion of the shares can be purchased rather cheaply. I ran some calculations to determine the financial impact of such a buy back program and it showed that it can be rather lucrative for Apple. I'll try to post the spreadsheet along with a discussion on the issue within the week.

Eric

PS VicHerb, I don't know much about the details of the FireWire licensing terms so I can't really speculate. Maybe we can email RKM and have him make something up for us. ;-)
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