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	<title>Comments on: Apple&#039;s $24.5 billion: The case for a big stock buyback</title>
	<atom:link href="http://brainstormtech.blogs.fortune.cnn.com/2008/10/29/apples-245-billion-the-case-for-a-big-stock-buyback/feed/" rel="self" type="application/rss+xml" />
	<link>http://brainstormtech.blogs.fortune.cnn.com/2008/10/29/apples-245-billion-the-case-for-a-big-stock-buyback/</link>
	<description>Fortune&#039;s tech team offers analysis and perspective on the world’s most important developments.</description>
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		<title>By: thetechnutz</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2008/10/29/apples-245-billion-the-case-for-a-big-stock-buyback/#comment-15827</link>
		<dc:creator>thetechnutz</dc:creator>
		<pubDate>Fri, 31 Oct 2008 21:18:38 +0000</pubDate>
		<guid isPermaLink="false">http://fortuneapple20.wordpress.com/?p=2314#comment-15827</guid>
		<description>On paper it sounds good, but lets be honest do we really think Jobs and Co. will approve something like this?

I highly doubt it. This really is not the way get get market share. Come on Jobs is an intelligent guy and can come up with something better than this. Like you said last time was the Apple Store chain.



As an Apple Stockholder I hope they do not go this route.



http://thetechnutz.wordpress.com/</description>
		<content:encoded><![CDATA[<p>On paper it sounds good, but lets be honest do we really think Jobs and Co. will approve something like this?</p>
<p>I highly doubt it. This really is not the way get get market share. Come on Jobs is an intelligent guy and can come up with something better than this. Like you said last time was the Apple Store chain.</p>
<p>As an Apple Stockholder I hope they do not go this route.</p>
<p><a href="http://thetechnutz.wordpress.com/" rel="nofollow">http://thetechnutz.wordpress.com/</a></p>
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		<title>By: cynik, switzerland</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2008/10/29/apples-245-billion-the-case-for-a-big-stock-buyback/#comment-15826</link>
		<dc:creator>cynik, switzerland</dc:creator>
		<pubDate>Fri, 31 Oct 2008 02:48:52 +0000</pubDate>
		<guid isPermaLink="false">http://fortuneapple20.wordpress.com/?p=2314#comment-15826</guid>
		<description>&quot;Wall Street is all about the current or immediately past 90 days. The manager that thinks about next year or 5 years from now will most certainly never maximize his/her bonus.&quot;



I&#039;ve heard that from others, as well. I wouldn&#039;t know myself, as i don&#039;t play stocks, but it seems a savage indictment of the numerics culture that feeds on the work of industry.



All the big guys who built great companies always say the same thing: they wanted to make better products and make their mark in industry. they wanted to create.



And so they went to the market to gather capital from share issues because it is better than borrowing. And then their companies were mismanaged by fools who peer into a bag full of numbers and use their parents money to force change in industrial practice.



Sad, and probably the core reason we get bubbles in the market instead of sustainable, enriching growth.



Folks who create nothing but numbers are a cancer, a drain on those who creates products and services that help other people.</description>
		<content:encoded><![CDATA[<p>&#034;Wall Street is all about the current or immediately past 90 days. The manager that thinks about next year or 5 years from now will most certainly never maximize his/her bonus.&#034;</p>
<p>I&#039;ve heard that from others, as well. I wouldn&#039;t know myself, as i don&#039;t play stocks, but it seems a savage indictment of the numerics culture that feeds on the work of industry.</p>
<p>All the big guys who built great companies always say the same thing: they wanted to make better products and make their mark in industry. they wanted to create.</p>
<p>And so they went to the market to gather capital from share issues because it is better than borrowing. And then their companies were mismanaged by fools who peer into a bag full of numbers and use their parents money to force change in industrial practice.</p>
<p>Sad, and probably the core reason we get bubbles in the market instead of sustainable, enriching growth.</p>
<p>Folks who create nothing but numbers are a cancer, a drain on those who creates products and services that help other people.</p>
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		<title>By: deagol, Caracas VE</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2008/10/29/apples-245-billion-the-case-for-a-big-stock-buyback/#comment-15825</link>
		<dc:creator>deagol, Caracas VE</dc:creator>
		<pubDate>Thu, 30 Oct 2008 22:04:12 +0000</pubDate>
		<guid isPermaLink="false">http://fortuneapple20.wordpress.com/?p=2314#comment-15825</guid>
		<description>Hey Philip, that formula should read:



18 &lt; 1/.0155 &lt;b&gt;≈&lt;/b&gt; (approximately equal to) 64.5



Not that I think it&#039;s a good formula anyway.</description>
		<content:encoded><![CDATA[<p>Hey Philip, that formula should read:</p>
<p>18 &lt; 1/.0155 <b>≈</b> (approximately equal to) 64.5</p>
<p>Not that I think it&#039;s a good formula anyway.</p>
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		<title>By: Fred, Fresno, CA</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2008/10/29/apples-245-billion-the-case-for-a-big-stock-buyback/#comment-15824</link>
		<dc:creator>Fred, Fresno, CA</dc:creator>
		<pubDate>Thu, 30 Oct 2008 22:01:37 +0000</pubDate>
		<guid isPermaLink="false">http://fortuneapple20.wordpress.com/?p=2314#comment-15824</guid>
		<description>Stock Buy Backs are not dumb in the present current quarter focused financial world.  Stock price is the issue.  High stock prices make shareholders happy.  Happy shareholders pay management big bucks. The major mover of stock price is earnings per share.



There are two ways increase EPS, increase earnings or decrease the number of shares.  Obviously, Apple management thinks that in the present economic setting spending $25B on shrinking the number of shares will get more or safer EPS than risking that $25B in the product market.



Wall Street is all about the current or immediately past 90 days.  The manager that thinks about next year or 5 years from now will most certainly never maximize his/her bonus.</description>
		<content:encoded><![CDATA[<p>Stock Buy Backs are not dumb in the present current quarter focused financial world.  Stock price is the issue.  High stock prices make shareholders happy.  Happy shareholders pay management big bucks. The major mover of stock price is earnings per share.</p>
<p>There are two ways increase EPS, increase earnings or decrease the number of shares.  Obviously, Apple management thinks that in the present economic setting spending $25B on shrinking the number of shares will get more or safer EPS than risking that $25B in the product market.</p>
<p>Wall Street is all about the current or immediately past 90 days.  The manager that thinks about next year or 5 years from now will most certainly never maximize his/her bonus.</p>
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		<title>By: Paul, Acton, MA</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2008/10/29/apples-245-billion-the-case-for-a-big-stock-buyback/#comment-15823</link>
		<dc:creator>Paul, Acton, MA</dc:creator>
		<pubDate>Thu, 30 Oct 2008 20:42:26 +0000</pubDate>
		<guid isPermaLink="false">http://fortuneapple20.wordpress.com/?p=2314#comment-15823</guid>
		<description>What a moronic idea.  Companies don&#039;t grow or become better or more competitive or have better products or services when they buy back stock.  They don&#039;t grow when they sell or close divisions either.   They dont grow when they change names or restructure their management team. They also don&#039;t grow when they pay huge dividends.



 Managers are paid to grow businesses, to innovate and to develop new and improved products and services in order to keep customer&#039;s money flowing in.  Not every new improved product will be a hit, but some will and good companies spend their accumulated earnings on new products and services.</description>
		<content:encoded><![CDATA[<p>What a moronic idea.  Companies don&#039;t grow or become better or more competitive or have better products or services when they buy back stock.  They don&#039;t grow when they sell or close divisions either.   They dont grow when they change names or restructure their management team. They also don&#039;t grow when they pay huge dividends.</p>
<p> Managers are paid to grow businesses, to innovate and to develop new and improved products and services in order to keep customer&#039;s money flowing in.  Not every new improved product will be a hit, but some will and good companies spend their accumulated earnings on new products and services.</p>
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		<title>By: notedscholar</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2008/10/29/apples-245-billion-the-case-for-a-big-stock-buyback/#comment-15822</link>
		<dc:creator>notedscholar</dc:creator>
		<pubDate>Thu, 30 Oct 2008 18:51:24 +0000</pubDate>
		<guid isPermaLink="false">http://fortuneapple20.wordpress.com/?p=2314#comment-15822</guid>
		<description>Mmmm could crash at any time though. Keep that in mind. Although high tech industry is notoriously stable. But then again it has been developed in the dynamic state sector. See the book, Targeting the Computer.



http://sciencedefeated.wordpress.com/</description>
		<content:encoded><![CDATA[<p>Mmmm could crash at any time though. Keep that in mind. Although high tech industry is notoriously stable. But then again it has been developed in the dynamic state sector. See the book, Targeting the Computer.</p>
<p><a href="http://sciencedefeated.wordpress.com/" rel="nofollow">http://sciencedefeated.wordpress.com/</a></p>
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		<title>By: Bubba, Passaic,NJ</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2008/10/29/apples-245-billion-the-case-for-a-big-stock-buyback/#comment-15821</link>
		<dc:creator>Bubba, Passaic,NJ</dc:creator>
		<pubDate>Thu, 30 Oct 2008 16:05:13 +0000</pubDate>
		<guid isPermaLink="false">http://fortuneapple20.wordpress.com/?p=2314#comment-15821</guid>
		<description>VZ  Market Cap:   $85.5B

S     Market Cap:  &lt;$10B

DTLSF Market Cap:  $56.21B

ATT is at $157B but would fall should AAPL buy one of the above.</description>
		<content:encoded><![CDATA[<p>VZ  Market Cap:   $85.5B</p>
<p>S     Market Cap:  &lt;$10B</p>
<p>DTLSF Market Cap:  $56.21B</p>
<p>ATT is at $157B but would fall should AAPL buy one of the above.</p>
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		<title>By: cynik, switzerland</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2008/10/29/apples-245-billion-the-case-for-a-big-stock-buyback/#comment-15820</link>
		<dc:creator>cynik, switzerland</dc:creator>
		<pubDate>Thu, 30 Oct 2008 12:26:32 +0000</pubDate>
		<guid isPermaLink="false">http://fortuneapple20.wordpress.com/?p=2314#comment-15820</guid>
		<description>Norman makes interesting comments. i would also like to hear more about the idea of underwriting the share price in this way.



But there are a few suggestions here that Apple should subsidize products to grow market share. With respect, that is lunacy, and idiot numerics. It is throwing away money to get a good set of numbers, according to the opinion of some &quot;economist&quot; who earns 15 grand a year from the state.



The way you grow market share is to make products that appeal to the market. then the market buy them, and you have market share at a profit. The idea that you can win in business by selling at a loss is so crazy I am not going to talk about it further.



So the big challenge for Apple is how to grow market share at a profit. NO SHIT. I mean, Stevo is so thankful for everyone who has looked into their crystal ball and come up with this nugget of gold. All this time, he thought he was painting a chicken yellow in order to win an art contest.



But money can&#039;t BUY market share. It has to be conquered, with good products. So the question becomes, What is the product Apple needs to build, in order to grow?



I think it is becoming evident that this product is the Enterprise framework. Apple need to stop perfecting the personal computer and music player, and start building a business machine.



How? Well, my two cents is that they need the best people. Everywhere they have dominated, it has been because they have the best people. Jonathan Ives, how much is that guy worth? You can&#039;t put a price on him. You just can&#039;t put a price on the minds that generate quality ideas. For a company that deals in tech, the grey matter is the fundamental asset upon which all else is built.



I have no idea who these folks are, the best brains for building the Enterprise framework, but I would bet my last dollar that this is where that cash must be spent.



If Apple succeed in Enterprise, they will own the show. If they fail, they are going nowhere. So I think they must employ every bright spark in the Enterprise tech world, put them to work, and cull the weak without mercy.



And that will not cost billions, but it will take some real leadership. I suspect it is already happening, but i don&#039;t have the data to back me up. So it is a guess, based on the way the Divine being has built this company over the course of my lifetime.</description>
		<content:encoded><![CDATA[<p>Norman makes interesting comments. i would also like to hear more about the idea of underwriting the share price in this way.</p>
<p>But there are a few suggestions here that Apple should subsidize products to grow market share. With respect, that is lunacy, and idiot numerics. It is throwing away money to get a good set of numbers, according to the opinion of some &#034;economist&#034; who earns 15 grand a year from the state.</p>
<p>The way you grow market share is to make products that appeal to the market. then the market buy them, and you have market share at a profit. The idea that you can win in business by selling at a loss is so crazy I am not going to talk about it further.</p>
<p>So the big challenge for Apple is how to grow market share at a profit. NO SHIT. I mean, Stevo is so thankful for everyone who has looked into their crystal ball and come up with this nugget of gold. All this time, he thought he was painting a chicken yellow in order to win an art contest.</p>
<p>But money can&#039;t BUY market share. It has to be conquered, with good products. So the question becomes, What is the product Apple needs to build, in order to grow?</p>
<p>I think it is becoming evident that this product is the Enterprise framework. Apple need to stop perfecting the personal computer and music player, and start building a business machine.</p>
<p>How? Well, my two cents is that they need the best people. Everywhere they have dominated, it has been because they have the best people. Jonathan Ives, how much is that guy worth? You can&#039;t put a price on him. You just can&#039;t put a price on the minds that generate quality ideas. For a company that deals in tech, the grey matter is the fundamental asset upon which all else is built.</p>
<p>I have no idea who these folks are, the best brains for building the Enterprise framework, but I would bet my last dollar that this is where that cash must be spent.</p>
<p>If Apple succeed in Enterprise, they will own the show. If they fail, they are going nowhere. So I think they must employ every bright spark in the Enterprise tech world, put them to work, and cull the weak without mercy.</p>
<p>And that will not cost billions, but it will take some real leadership. I suspect it is already happening, but i don&#039;t have the data to back me up. So it is a guess, based on the way the Divine being has built this company over the course of my lifetime.</p>
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		<title>By: Jonathan, London, England</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2008/10/29/apples-245-billion-the-case-for-a-big-stock-buyback/#comment-15819</link>
		<dc:creator>Jonathan, London, England</dc:creator>
		<pubDate>Thu, 30 Oct 2008 09:53:44 +0000</pubDate>
		<guid isPermaLink="false">http://fortuneapple20.wordpress.com/?p=2314#comment-15819</guid>
		<description>Any shareholder in Apple that is happy to make only 1.55% on the cash that they own needs to learn a thing or two about investing. Apple&#039;s $24.5bn cash pile is making meagre returns... surely any rational shareholder would prefer to have the cash themselves (in the form of a dividend) to invest as they see fit.



A share buy back is effectively forcing shareholders to invest more of the cash they own into the company... I would rather do that myself if I wanted to increase my investment in Apple...



A dividend payment makes much more sense...</description>
		<content:encoded><![CDATA[<p>Any shareholder in Apple that is happy to make only 1.55% on the cash that they own needs to learn a thing or two about investing. Apple&#039;s $24.5bn cash pile is making meagre returns&#8230; surely any rational shareholder would prefer to have the cash themselves (in the form of a dividend) to invest as they see fit.</p>
<p>A share buy back is effectively forcing shareholders to invest more of the cash they own into the company&#8230; I would rather do that myself if I wanted to increase my investment in Apple&#8230;</p>
<p>A dividend payment makes much more sense&#8230;</p>
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		<title>By: Katelyn, Fort Wayne Indiana</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2008/10/29/apples-245-billion-the-case-for-a-big-stock-buyback/#comment-15818</link>
		<dc:creator>Katelyn, Fort Wayne Indiana</dc:creator>
		<pubDate>Thu, 30 Oct 2008 05:06:33 +0000</pubDate>
		<guid isPermaLink="false">http://fortuneapple20.wordpress.com/?p=2314#comment-15818</guid>
		<description>OKay Philip doesn&#039;t know what he&#039;s talking about.  APPL has no need to buyback stock.  Buying back stock is it increase investor&#039;s confidence in a company and keep them from selling.  Stock buybacks are essentially a guarantee that the company they invested in can still pay there bills.  APPL has $25 bln in cash equivalent assets and no debt.  Therefore, APPL has no logistical reason to buy stock.  APPL if it choses to use said money will use it to make logistical acquisitions that serves its long-term goals.  Seriously, has anyone looked what idiots in Wall Street did with they money and the toliet that their in now?</description>
		<content:encoded><![CDATA[<p>OKay Philip doesn&#039;t know what he&#039;s talking about.  APPL has no need to buyback stock.  Buying back stock is it increase investor&#039;s confidence in a company and keep them from selling.  Stock buybacks are essentially a guarantee that the company they invested in can still pay there bills.  APPL has $25 bln in cash equivalent assets and no debt.  Therefore, APPL has no logistical reason to buy stock.  APPL if it choses to use said money will use it to make logistical acquisitions that serves its long-term goals.  Seriously, has anyone looked what idiots in Wall Street did with they money and the toliet that their in now?</p>
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