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AAPL Fiscal Q3 2012 Early Estimates
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Here’s Dealgol’s F3Q estimates….
http://aaplmodel.blogspot.com/2012/07/fiscal-3q-2012-final-estimates.html?m=1
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Tim Cook: iPad is 91% of all tablet web traffic. I don’t know what these other tablets are doing.
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Have been traveling so a little late posting.
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I’m at $12.27, so, we’re basically mostly thinking the same thing based on the numbers I’ve seen so far.
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The Summer of AAPL is here. Enjoy it (responsibly) while it lasts.
AFB Night Owl Team™
Thanks, Steve. -
Does anyone else find it amazing that apple gets such a seemingly shitty cash return on its $100 billion+ in cash & equivalents?
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Full Disclosure:
- Long Apple
- Pro: Apple HDTV, iPhone Air, Stock split, Consumer robotics -
Huh? You mean its hyperconservative capital preservation approach?
Or the lack of value investors place in the cash as seen in the share price?
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The Summer of AAPL is here. Enjoy it (responsibly) while it lasts.
AFB Night Owl Team™
Thanks, Steve. -
Huh? You mean its hyperconservative capital preservation approach?
Or the lack of value investors place in the cash as seen in the share price?
The former, but the latter issue irks me also now that you mention it.
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Full Disclosure:
- Long Apple
- Pro: Apple HDTV, iPhone Air, Stock split, Consumer robotics -
Apple is doing the right thing I think. Return on cash = risk. Apple will lag in income from cash reserves and I could not care less.
But when (if?) interest rates rise, as DT has said, those billions will start spinning off billions every year to boost earnings and cash flow the purchase of those smaller companies Apple is fond of acquiring.
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The Summer of AAPL is here. Enjoy it (responsibly) while it lasts.
AFB Night Owl Team™
Thanks, Steve. -
Apple is doing the right thing I think. Return on cash = risk. Apple will lag in income from cash reserves and I could not care less.
But when (if?) interest rates rise, as DT has said, those billions will start spinning off billions every year to boost earnings and cash flow the purchase of those smaller companies Apple is fond of acquiring.
Thats what I’m hoping. I guess there are significant currency transactions & hedging costs involved (not to mention taxation issues), but when I can go down to one of the local NZ/Australian banks down here and get a very safe cash account interest rate of 5%, it feels bizarre that apple manages less than a 1% return.
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Full Disclosure:
- Long Apple
- Pro: Apple HDTV, iPhone Air, Stock split, Consumer robotics -
Well, it ain’t necessarily safe at 5% around the rest of the world. 5% is but a “happy” memory in the US.
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The Summer of AAPL is here. Enjoy it (responsibly) while it lasts.
AFB Night Owl Team™
Thanks, Steve. -
Apple is doing the right thing I think. Return on cash = risk. Apple will lag in income from cash reserves and I could not care less.
But when (if?) interest rates rise, as DT has said, those billions will start spinning off billions every year to boost earnings and cash flow the purchase of those smaller companies Apple is fond of acquiring.
Thats what I’m hoping. I guess there are significant currency transactions & hedging costs involved (not to mention taxation issues), but when I can go down to one of the local NZ/Australian banks down here and get a very safe cash account interest rate of 5%, it feels bizarre that apple manages less than a 1% return.
That 5% is retail rates of banks trying to woo your business, and these days, it’s usually temporary. With foreign banks, you also get currency risk vs dollar-denominated, which is huge. They could guarantee 5%, but nobody can assure you that the NZ dollar won’t lose 10% vs US dollars due to inflation. Considering these are dollar denominated, triple-AAA assurances, plus balances of over $100B, I’m just happy AAPL is able to manage anything over zero.
As an aside, and with $100B in the bank, I do agree I would make sense to allocate a portion, and buy a basket of commercial debt, which could be easily yield 5%, and still be very safe. Apparently, the near-death experience at AAPL in the 90’s left them scarred, so they’re not willing to do even that.
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I’m all for conservative cash management.
As for what Apple’s “cash” is comprised of, well it DOES hold commercial paper…just not “much”. And it’s much more than just cash. In fact, it’s HARDLY cash (as of the 2011 10-K). Check out page 55:
http://files.shareholder.com/downloads/AAPL/1465600822x0xS1193125-11-282113/320193/filing.pdf
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The Summer of AAPL is here. Enjoy it (responsibly) while it lasts.
AFB Night Owl Team™
Thanks, Steve. -
I’m all for conservative cash management.
As for what Apple’s “cash” is comprised of, well it DOES hold commercial paper…just not “much”. And it’s much more than just cash. In fact, it’s HARDLY cash (as of the 2011 10-K). Check out page 55:
http://files.shareholder.com/downloads/AAPL/1465600822x0xS1193125-11-282113/320193/filing.pdf
Wow, thanks for that Mav. Had never seen that level of detail before… probably wasn’t looking. It’s impressive that roughly 40% of the “cash and cash equivalents” were in “corporate securities”. Is that FAS550 speak for plain old stocks? If not, how is that different from “commercial paper”?
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It’d be a real kick if Apple owned certain dividend-paying stocks like, say, IBM.
Apple probably owns some WMT too via either shares or some fund or ETF or something, which is all kinds of ironic to me.
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The Summer of AAPL is here. Enjoy it (responsibly) while it lasts.
AFB Night Owl Team™
Thanks, Steve. -
It’d be a real kick if Apple owned certain dividend-paying stocks like, say, IBM.
Apple probably owns some WMT too via either shares or some fund or ETF or something, which is all kinds of ironic to me.
Now we know why AMZN has that stoopid P/E ratio. Mercel, get on the horn to investor relations stat!
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Oppenheimer’s Secret Shame:
AMZN Momo Investor.
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The Summer of AAPL is here. Enjoy it (responsibly) while it lasts.
AFB Night Owl Team™
Thanks, Steve.
