Site icon The Insiders Fund

Apple, your stock has become a distraction

Really, Tim Cook.  It’s time to put an end to the trading mania around your stock.  My calculations today that $12.86 billion worth of stock that traded today was 58% of entire dollar volume ($12.86 billion)of the most popular ETF out there, the SPY.  That’s just plain ridiculous and it wasn’t even an unusual volume day for Apple.  Clearly the stock is now getting in the way of innovation,hiring, and retention of employees.

Can you think of anything better to do with your mountain of cash than buy back your own stock.  Apple is trading near 8 times earnings when you subtract out the $131 billion in cash.  I’ve heard some analysts recommend that you buy back 10% of the Company.  That’s a no brainer when you can borrow the money at less than 2% and not even have to repatriate the cash.  No company can buy Apple because it’s too valuable but then again- you could.  Maybe Apple should buy Apple.

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