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From: BDAZZ3/18/2012 10:39:41 PM
1 Recommendation   of 122974
 
Big Apple announcement tomorrow, cc 9 A.M, concerning their plans for their $100 billion in cash.

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To: BDAZZ who wrote (110561)3/18/2012 11:12:30 PM
From: mindy1968
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How do you know that BDAZZ

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From: mindy19683/18/2012 11:19:13 PM
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Apple Says It Will Announce a Decision About Its Cash By NICK WINGFIELD Published: March 18, 2012

nytimes.com

Apple has finally decided what to do with its cash hoard of nearly $100 billion.



  • The company issued an unusual media alert on Sunday evening saying it planned to announce on Monday morning the long-awaited outcome to a discussion by its board about what to do with its cash balance. It will announce its plans in a conference call at 9 a.m. Eastern time.

    Apple, which recently released the newest version of its iPad, said it would not provide any information about how its business was going in the current quarter, restricting the discussion with reporters to questions about its cash.

    Apple, based in Cupertino, Calif., is widely expected to announce a plan to issue a continuing dividend to its shareholders. As its cash has piled up, Wall Street analysts and investors have begun to call more loudly for Apple to return some of it to shareholders as dividends. Although having too much cash is rarely seen as a burden for a company, Apple earns less than 1 percent in interest on the cash, which many investors view as wasteful.

    Until recently, Apple had resisted pressure to issue a dividend, a practice often associated with mature companies that have settled into slower rates of sales and earnings growth.

    While it is more than three and a half decades old, Apple has been on a growth spurt that is highly unusual for a company of its age. The success of new products like the iPhone and iPad has propelled both revenue and profits; during the holiday quarter, for example, the company more than doubled its profit from the same period in the prior year.

    Apple issued shareholder dividends earlier in its history, stopping in December 1995.

    Since Apple’s current chief executive, Timothy D. Cook, took over last fall, he and other executives have signaled their willingness to consider a plan for the company’s cash other than letting it accumulate. For months, Apple executives have said they were in discussions with the company’s board members about developing such a plan.

    Steve Dowling, an Apple spokesman, declined to comment about Apple’s plans before the conference call on Monday.

    A. M. Sacconaghi Jr., an analyst with Bernstein Research, said one challenge Apple faced was that its stock had appreciated so much that some growth fund managers were bumping into limits on how concentrated their funds can be in any single stock.

    Mr. Sacconaghi said that issuing a dividend could help Apple appeal to new types of value investors. He said that a recent increase in Apple shares had partly been caused by more of those value investors’ buying the stock in anticipation of a dividend.

    “It will attract a broader class of investor,” he said.

    It is possible Apple could announce other plans for its cash, including an acquisition of another company, though Apple has never made a multibillion-dollar acquisition.

    Apple could also use its cash to buy back shares from investors, but that is a technique often used by companies trying to raise their earnings per share, something Apple does not need to do.

    Mr. Sacconaghi said a share buyback would be less helpful to Apple since its earnings were already growing so quickly.

    While Apple ended last year with a cash balance of $97.6 billion, it cannot easily gain access to most of that for a dividend because roughly 66 percent of the money is held by its foreign subsidiaries. To bring that cash back to the United States, Apple would have to pay hefty repatriation taxes, very likely more than 30 percent.

    That leaves it with about $34 billion in cash in the United States. In a recent report, Mr. Sacconaghi estimated that Apple could issue a 2.5 percent annual dividend to shareholders without touching its cash in the United States, financing the payout entirely from new cash it generates from its business operations. At Apple’s current share price of $585.57, that would amount to a dividend of $14.64 a year for every share.

    If Apple wanted to pay a higher dividend, Mr. Sacconaghi said, the most attractive option for the company could be to raise tens of billions of dollars in debt at current low rates. That would give it the ability to pay a sizable dividend for years while waiting for a possible change in American laws that could allow it to bring its foreign cash back home without big taxes.








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    From: mindy19683/19/2012 6:53:05 AM
    2 Recommendations   of 122974
     
    Apple Cash Announcement Coming Monday - Why I'm Hoping It Disappoints


    seekingalpha.com

    March 19, 2012 | 3 commentsby: Bill Maurer | about: AAPL, includes: QCOM Sunday evening, we all got the news we have been waiting for months to hear. Apple (AAPL) will announce Monday morning, at a 9am conference call, what they plan to do with the presumably more than $100 billion of cash and investments they have on their balance sheet.

    Before my prediction, a few things to remember. First, about two-thirds of Apple's cash is held outside of the United States, meaning that Apple's cash and investments pile in the US is somewhere between $30 and $40 billion. If Apple wants to bring foreign money back into the US, they will have to pay taxes on it first, and that could have an impact on their decision.

    The second issue relates to the following quote, which was in the above linked article.


    Brian Marshall, an analyst at ISI, says Apple could initiate a 2.5% dividend payout.

    "At today's prices, this would equate to a dividend payout of about $14.65 per share annually," he says. "We believe a dividend will drive an incremental $4.5 billion in stock purchases (i.e., similar to adding a new top 10 holder) from top 20 dividend mutual funds and ETFs."


    $4.5 billion in stock purchases? That's less than $5 a share, less than 1% of Apple's $546 billion market cap right now. Don't forget, Apple shares are up 44.6% this year, so some of tomorrow's announcement may be priced in. That could lead to disappointment (the old buy the rumor, sell the news scenario).

    So what will Apple do? In my opinion, I'm hoping for something small. If Apple starts out with a huge dividend, the promise for dividend raises going forward will be lessened. I would prefer a smaller dividend to start, so that Apple could raise it going forward. My prediction would be a $2.5 per quarter dividend, and that $10 annually would currently yield 1.71%. That would represent a payout of approximately $9.3 billion, based on Apple's shares outstanding at the end of the most recent quarter.

    Just look at what Microsoft (MSFT) has done with their dividend. They started small, at 8 cents per quarter, and now they are increasing it at a nice pace each year. Microsoft has increased its dividend from 13 to 16 to 20 cents since 2010, and there is the potential for another nice raise this year. Remember, Microsoft has about $60 billion in cash and investments on its balance sheet. A lot of people seem to forget that just because Apple is at $100 billion.

    As for a potential buyback, I don't see one coming unless they tap the foreign cash hoard. Apple has a fair amount of money inside the US, but I don't think it is enough for a sizable dividend and a buyback at this point. If Apple is going to start buying back its shares, it will need to bring some of its foreign money back in.

    One other thing I want to mention here. If you read my latest article on Apple, you'll know that I said that Qualcomm (QCOM) was my best play on Apple, without buying Apple. This weekend, Qualcomm was named positively in Barron's. According to the report, Qualcomm's chips are in both the latest iPhone (4S) and the new iPad. I would also expect them to be in the new iPhone (5?) when it comes out later this year. Also, the following quote from Barron's, if true, would be excellent news for Qualcomm going forward.


    Chipsets for video and graphics could drive Microsoft's Windows 8 tablets when those Microsoft products reach the market, the investors' weekly said.


    If Qualcomm gets into the Windows 8 tablets, and continues to supply Apple, they will be in great shape. That's why Barron's says Qualcomm can rise 30% in the next year, and this is a stock already at a 52-week high. A 30% rise from here puts the stock at $85.

    So Monday is the day for Apple, and I'm expecting a $2.50 quarterly dividend. But actually, I'm hoping that whatever Apple does disappoints investors, for now. Why? Because I would love to see shares drop to $550 or so Monday. It would be a tremendous buying opportunity.

    Of course, if investors like what they hear from Apple, I don't see any reason why the stock won't close over $600 Monday. But it is safe to say, if we get that drop Monday, I will be buying Apple.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AAPL, QCOM over the next 72 hours.

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    From: slacker7113/19/2012 8:19:45 AM
    2 Recommendations   of 122974
     

    It sounds like Samsung is going to have an integrated LTE/WCDMA chip of their own in the Galaxy S3. Samsung using non-Q chips is a trend that has been going on for a few years so this doesnt come as much of a surprise.

    koreatimes.co.kr

    Samsung cuts dependence on Qualcomm

    Google’s first reference mobile, the Galaxy Nexus S, is seen in this file photo. Samsung tested its single-chip solution in the long-term evolution-enabled Nexus S. Samsung aims to grow as a solutions provider by strengthening its capability to produce telecom chips.
    / Korea Times file

    Smartphone maker plans to use in-house chips for Galaxy S III

    By Kim Yoo-chul

    Samsung Electronics will use its single-chip solutions for its next smartphone, the Galaxy S III, to lower dependence on U.S. chipmaker Qualcomm.

    The move comes as Samsung, the world’s top memory chipmaker, aggressively shifting focus to more profitable and less-volatile non-memory chips.

    Memory chips like DRAMs and NAND flashes are used to read and write data with these chips being commoditized. Thus they are cheap, compared with non-memory chips. Non-memories are to control an entire computing system and require advanced chip-making technology.

    ``Samsung’s single-chip solution is a combination of long-term evolution (LTE), telecommunications and W-CDMA functions,’’ a high-ranking company executive said Monday.

    The firm’s Exynos-branded quad-core mobile application processors (APs) are to be equipped in the Galaxy S II’s successor, according to the executive.

    ``We don’t think there will be big technology-related problems as we have already tested our telecommunications chips in some smartphones and tablets for consumers in North America. Also, Google’s first reference mobile, the Galaxy Nexus, is using Samsung's telecom chips,’’ said the executive.

    ``Samsung has a stronger intent to lower its dependence on Qualcomm and our technicians believe that we have made significant progress in producing logic-based chips for high-end devices, combined logic and memory chips for graphic controllers and core communication chips for Internet-enabled consumer devices,’’ said the executive.

    Amid the explosive growth for LTE-enabled smartphones globally, the decision could hurt San Diego-based Qualcomm in the mid- to long-term, according to analysts.

    ``Samsung is paying huge amounts to Qualcomm in return for using its single-chip solutions in strategic digital devices, however, Qualcomm is gradually losing its edge,’’ said another Samsung executive. Both executives asked not to be identified as they don’t have the right to officially speak to the media.

    Samsung, which was the world’s biggest smartphone seller last year, plans to sell 250 million smartphones this year, up 25 percent from its earlier target of 200 million.

    Ambitious Samsung, uneasy Qualcomm

    So far, Samsung Electronics is an earnings propeller for Qualcomm because the American firm was the sole provider of one-chip solutions.

    ``It was believed that Qualcomm chips had greater stability and suited easy upgrades. But, that’s the old story,’’ said the Samsung executives.

    In line with its plan, Samsung is improving ``through silicon via’’ (TSV) memory stocking technology. ``Our long-term plan is clear. Using Samsung solutions for Samsung products.’’

    To prevent Qualcomm from losing one of its top customers, it recently announced the launch of its fifth-generation Gobi reference platform that seeks to pack support nearly all major worldwide mobile standards into a single chip.

    Based on the company’s Gobi LTE wireless baseband modems, the MDM9615 and MDM9215 deliver fast LTE connectivity with backwards compatibility to both HSPA+ and EV-DO networks, Qualcomm insists.

    ``This will allow support for regional LTE frequencies with backwards compatibility to existing 2G and 3G technologies, allowing Gobi LTE devices to connect to faster LTE network locallys and stay connected to the Internet globally on 3G networks worldwide,’’ it added.

    Both Qualcomm officials in South Korea, and Samsung Electronics spokesman Ken Noh declined to comment on the Korean firm’s plans.

    Samsung’s transition towards becoming a solutions provider and a chip supplier is strengthening as its mobile head Shin Jong-kyun is injecting more resources to expand the management of its own telecom chips.

    ``Our division is not just to produce smartphones and tablets. In order to diversify portfolios, our division should do better for telecom chips,’’ said Shin.

    The chip division is handling mobile APs and the head of the company’s device solution unit, which encompasses flat-screens and memory chips, recently told The Korea Times that its mobile AP-making factory in Austin, Texas, became fully operational last year. Apple’s i-devices use Samsung’s mobile APs produced at the Austin plant.

    The Exynos chip is currently built using a 45-nanometer process but the new Exynos chip will be made with 32-nanometer technology, giving better performance quality without using as much power. Samsung said that in terms of performance, it gives up to 26 percent more than the current 45-nanometer chip, with battery life improved by half. The new version will be used in the Galaxy S III.

    This in itself is good news for consumers who rely on battery performance when choosing devices.

    ``The development of quad-core mobile APs is finalized and the decision to make one-chip solutions was by Shin,’’ said an executive at the company’s semiconductor division.

    ``If Samsung successfully strengthens its management for telecommunications chips, then it expects to see more revenue from smartphones and tablets. That’s the scenario we hope,’’ said the unnamed executive.

    Samsung has a cross-licensing deal with Qualcomm until 2024 to use the American firm’s single-chip solutions.

    Switzerland-based brokerage UBS has raised its target for Samsung Electronics shares to 1.48 million won citing a rising shares in smartphones.

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    To: BDAZZ who wrote (110561)3/19/2012 8:29:58 AM
    From: Jim Mullens
    1 Recommendation   of 122974
     
    BDAZZ, re: Apple cash news............................................

    It's been mentioned that 2/3 of APPLs cash is off-shore, like QCOM, and some are predicting about $10/sh annually yielding 1.7% also similar to QCOM. Doing this plus a 10 to 1 split should enable many more institutions / individuals to participate in Apple's success. And, perhaps allow for PE expansion it rightly deserves. Tieing this to QCOM... I hope all QCOM customers succeed.

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    To: Jim Mullens who wrote (110566)3/19/2012 8:48:56 AM
    From: Jim Mullens
       of 122974
     
    Apple To Offer $2.65/Sh Dividend by Q4, $10B Repurchase Plan


    By Tiernan Ray Apple( AAPL) this morning announced it will initiate a quarterly dividend of $2.65 in its fiscal Q4, which ends in September, and its board approved a $10 billion share repurchase program, to begin next fiscal year and being enacted over the course of three years.

    CEO Tim Cooksaid Apple has “plenty of cash” to run the business.”

    We have used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure. You’ll see more of all of these in the future,” said Tim Cook, Apple’s CEO. “Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program.”

    At a share price of $600, that would give Apple a 1.8% annual dividend yield.

    Of course, a key detail left out of the press release is how Apple will finance the dividend — e.g., via using existing cash, or using future free cash flow.

    The company is holding a press conferencethis morning to discuss the announcement, and one would expect they will go into more detail at that time. You can catch the webcast of the conference call here at 9 am, eastern time.

    Apple’s shares were halted prior to the announcement; the stock’s last quote, at 8:25 am, was $599.32, up $13.75, or 2.4%.

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    From: slacker7113/19/2012 8:55:34 AM
    18 Recommendations   of 122974
     

    Hello everybody, I know that I have participated in the discussion, but I think the Apple talk have crossed over into the realm of the off topic. Discussions of Apple's sales and products are fine as they are a huge new customer but we are definitely trending into some topics that are a better fit for the Apple thread.

    I'm just hoping to nudge us back on course.


    Slacker

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    From: Bill Wolf3/19/2012 9:21:29 AM
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    Apple: UBS Strategists See ‘True Growth’ Earning Premium P/E Over Time
    By Tiernan Ray

    Reports continue to stream in regarding Apple’s (AAPL) press conference to be held this morning at 9 am, Eastern time.

    UBS Securities’s equity strategy team, including Jonathan Golub, this morning offer some context on Apple’s size and impact on the landscape.

    Despite Apple’s size and rapid growth, Golub and company find the firm is “unspectacular” when compared to former “high flyers” of the DotCom era, such as JDS Uniphase (JDSU) and Qualcomm (QCOM).

    More specifically, each of these “High Flyers” delivered an annualized relative return greater than 50%, with an average of over 100%. This compares to just 45% for Apple. In addition, P/E expansion drove the returns for the vast majority of “High Flyers”, which has not been the case for Apple. More specifically, Apple is trading in-line with the market, whereas the average “High Flyer” traded at nearly a four times premium. The stock looks inexpensive on a PEG basis as well, trading at less than half of its projected growth rate.

    Golub & Co. also conclude that Apple’s sales represent “true innovation” and therefore the company deserves a “premium” multiple on its stock, which the firm expects will happen over time:

    We believe that companies that deliver above average growth rates despite economic conditions warrant a premium multiple to their peers and the broad market. This should be especially true in the current environment given the macro headwinds of the past five years. While Apple has met this test with flying colors, it carries a multiple roughly in-line with the S&P 500 — 12.8x versus 12.9x. In our view, the company’s ‘true growth’ characteristics should increasingly result in a premium valuation. While Apple trades at a premium to most competitors its multiple seems hardly unreasonable.

    Apple shares this morning are up $16.43, or 3%, at $602.

    Copyright 2011 Dow Jones & Company

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    To: brokenst0nes who wrote (110555)3/19/2012 9:35:54 AM
    From: Jim Mullens
    1 Recommendation   of 122974
     
    Bs, re: 8690................................................................................

    How'bout a link for this QCOM chipset. I can't find it on Q's latest listing.

    TIA.

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