Thinking Different. How about a leveraged buyout of Apple.

  • Posted: 24 January 2011 06:39 PM #16

    Mace - 24 January 2011 05:41 PM

    Mike,

    Nobody bite.  You would need to raise the buyout price :evil:.  Only China government can buyout AAPL but even if SJ agrees, the health problem means it is not prudent to do so.  I’ll sell 20% to you at $500, and the other 80% for $1,000, deal?

    I would happily take $500 today.

         
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    Posted: 24 January 2011 07:36 PM #17

    alice - 24 January 2011 10:39 PM

    I would happily take $500 today.

    I wouldn’t. (This is also an answer to Mike)

    What would I do with the cash?! By that I mean the fact that I expect Apple to be a significant investment of mine for years to come (and I certainly expect it to top the valuation proposed by Mike). Even if I bought some aggressive OTM calls and cashed out tomorrow, I would rather rest in the knowledge that Apple is public and available for my new investments in the next 5 years. I suppose it depends on your time horizon; if you’re nearing retirement it’s a great deal. But I’m about to go on the market post-business school and enter one of the more cashflow-rich periods of my life, and I’ll need a secure vehicle to park that money and multiply it. I want to spread out both the investment, and the returns—and so far I’ve not found a company comparable to Apple.

    Also agree with Dan on the ‘soul of Apple’ if I may put it that way.

    Jonathan - Big thanks for running the numbers from a PE perspective, by the way!

         
  • Posted: 24 January 2011 09:29 PM #18

    I have to agree with JonathanU on this one.

    No one would be able to come close to pulling this off at even $500 a share.

    The largest syndicated loan in 2010 was only $10b, and the entire market was only $986b, nearly half of the height of the syndicated loan market in 2007.

    I definitely do not see it happening.  Ever.  Not sure if this is a good thing (AAPL reaches $1000) or a bad thing (how long will it take??).

    But..if I was offered $500 per share, I’d consider it.  Wishful thinking.

         
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    Posted: 24 January 2011 11:35 PM #19

    iant412 - 25 January 2011 01:29 AM

    I have to agree with JonathanU on this one.

    No one would be able to come close to pulling this off at even $500 a share.

    The largest syndicated loan in 2010 was only $10b, and the entire market was only $986b, nearly half of the height of the syndicated loan market in 2007.

    I definitely do not see it happening.  Ever.  Not sure if this is a good thing (AAPL reaches $1000) or a bad thing (how long will it take??).

    But..if I was offered $500 per share, I’d consider it.  Wishful thinking.

    I guess if I “had” to take $500 a share now I would then have to invest all my money in shorting apples competitors that I believe they will destroy. Probably the only way you could “invest” in the apple story if it went private.

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    Full Disclosure:

    - Long Apple
    - Pro: Apple HDTV, iPhone Air, Stock split, Consumer robotics

         
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    Posted: 24 January 2011 11:45 PM #20

    Man, you guys only look one direction. You are equating a buyout while the stock is going up, how about when it is going waaaaaaaay down. It is a lot easier to get people to part with their shares when there is major uncertainty. I will have to clarify, the only people who are going to take over Apple is Apple, by going private, and yes this would definitely have SJ’s blessing. :innocent:

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    Adversity does not just build character, it reveals it.

         
  • Posted: 24 January 2011 11:54 PM #21

    Mike, I have to completely agree with Roman.

    I would not sell my shares for $500, nor $600, nor $700, nor $800 if I could never own them again.

    Just where would I invest the proceeds of a sale?  Where will I find another Apple to invest in?  They do not come along every day.