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A Worthy Investment (7/14/99)
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My, my-- over three billion dollars in cash on hand. Whatever will Apple do with a bankroll that thick? We'll tell you what they'll do: they'll buy back a sizeable chunk of their own stock. In a second press release, Steve Jobs announced that "Apple's Board of Directors believes that the Company's stock is a good long term investment." To that end, Apple plans to spend about a half-billion dollars buying up shares of AAPL.
Maybe this announced stock buy-back plan will help bolster AAPL's price even further. While it's currently trading at levels close to the highest it's seen in six years, we have to assume that when a company shows enough confidence in its own performance to invest $500 million in stock, investors will sit up and take notice. After all, no one really knows the details of what Apple's going to be doing over the course of the next year, except Apple-- and if they think their own stock is a good investment at this time, well, we personally are going to have to believe them. Could this perhaps counteract the dreaded "post-profit deflation" that seems to happen every time Apple posts better-than-expected earnings? (According to a Reuters story over at CBS MarketWatch, Apple's stock price did indeed dip slightly in after-hours trading once the financial results were made public, continuing the long, strange streak.)
So Thursday's market activity ought to be fun to watch, just to see what the profit and the buy-back will do to AAPL. In fact, the entire next week will be fun, too, given the roller-coaster ride that Apple's stock often takes during a Macworld Expo. We don't know what exactly is going to happen, but we can say this with a pretty high degree of certainty: Apple's shareholders are probably wearing some big silly grins right about now.
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SceneLink (1661)
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And Now For A Word From Our Sponsors |
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 | | The above scene was taken from the 7/14/99 episode: July 14, 1999: Apple does it again; how's a $203 million profit for Q3 grab you? Meanwhile, all these profitable quarters have given Apple the cash it needs to start buying back some of its own stock, and speculation about a possible Apple-Palm announcement at next week's Expo continues unabated...
Other scenes from that episode: 1660: Mmmm... Success... (7/14/99) Is this getting old, yet? Apple announced their quarterly financial results in a press release after the market closed, and surprise, surprise-- they beat the Street yet again. The analysts were expecting a profit of about $89 million, and Apple delivered $203 million instead... 1662: Sooner Than You Think (7/14/99) Enough of the rosy financial news-- let's leap back into the world of rumors and half-truths where we feel right at home. Specifically, we find ourselves unable to stop thinking about this whole Apple-Palm thing...
Or view the entire episode as originally broadcast... | |  |
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