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Stocks A / Apple
|Subject: Re: say no to financial engineering distractions||Date: 11/1/2013 4:20 AM|
|Author: NailThatJello||Number: 197698 of 205650|
they could just come out and say "well, we have big plans for that cash, but for competitive reasons, we can't share any of the details with the public".
I recall they actually did this once, in the late Jobs years. Steve said something at a conference call like "we're holding onto the cash for possible major acquisitions or investments" (not his exact words). Time has passed, Steve has passed and this reason may not still hold, but I wouldn't declare it invalid without evidence otherwise.
One reason they may not be commenting further on this is that it really says little and only invites further speculation. Aha! They are going to make a giant acquisition! Can you tell us what sector, Mr. Cook? Ok just a hint please? Ok well tell us if it's not 'this' or not 'that'... blogosphere in a tizzy, etc. It rarely does a corp any good to signal its intentions to spend money in any direction, even a vague one.
Based on 1) the near-impossibliity of actually spending $100,000,000,000 of cash
Let's say for example, and of course this is sheer speculation, that their secret strategy was to buy Disney in order to break through the content owner's moat that has so far stopped Jobs' vision of a whole new approach to TV. Disney's market cap is $123 billion. Wow, suddenly Apple's $100 million doesn't go as far as we thought...
Again iTV is just a hypothetical example and may not be the one they go for so I am not arguing for that as the real thing. There