AAPL BuyBack

[ztirffritz]

As Apple moves through its stock buy-back program do they just buy what is available on the open market or can they just give me a wad of cash for my shares and send me on my way? I have no intention of selling anytime soon.

[cbelt3]

They buy from the market .unless they really don't want you as a stockholder . Then they invite you for a ride in the Gulfstream and toss you out at 45,000 feet.

[Lemon Drop]

Apple used two methods last quarter to buy back their stock:
accelerated share repurchase (ASR) was most of it, and they did this with 2 investment banks, basically buying back $12 billion of shares that the banks owned.
the rest, around $4 billion, was direct open market repurchase

Apple used debt to finance this entire stock repurchase, but they've authorized up to $60 billion in buy backs so from here on they'll likely use their own cash

the point of a buy back is to do dollar cost averaging so that they buy back their own stock at the most discounted price available, which means they take more off the market for less money

[pRICE cUBE]

cbelt3 wrote:
They buy from the market .unless they really don't want you as a stockholder . Then they invite you for a ride in the Gulfstream and toss you out at 45,000 feet.

I survived it. It wasn't so bad.

[cbelt3]

They liked you . Most people don't get a parachute !

[Buzz]

Lemon Drop wrote:
Apple used two methods last quarter to buy back their stock:
accelerated share repurchase (ASR) was most of it, and they did this with 2 investment banks, basically buying back $12 billion of shares that the banks owned.
the rest, around $4 billion, was direct open market repurchase

Apple used debt to finance this entire stock repurchase, but they've authorized up to $60 billion in buy backs so from here on they'll likely use their own cash

the point of a buy back is to do dollar cost averaging so that they buy back their own stock at the most discounted price available, which means they take more off the market for less money

Why wouldn't they continue to use debt for the repurchase as long as the company is (very) profitable? If they have to repatriate the cash hoard, it costs a bunch of tax to do so, or in the mean time, the cost of the debt is tax deductible to accomplish the goals of the repurchase.

///

[Lemon Drop]

Buzz wrote:
[quote=Lemon Drop]
Apple used two methods last quarter to buy back their stock:
accelerated share repurchase (ASR) was most of it, and they did this with 2 investment banks, basically buying back $12 billion of shares that the banks owned.
the rest, around $4 billion, was direct open market repurchase

Apple used debt to finance this entire stock repurchase, but they've authorized up to $60 billion in buy backs so from here on they'll likely use their own cash

the point of a buy back is to do dollar cost averaging so that they buy back their own stock at the most discounted price available, which means they take more off the market for less money

Why wouldn't they continue to use debt for the repurchase as long as the company is (very) profitable? If they have to repatriate the cash hoard, it costs a bunch of tax to do so, or in the mean time, the cost of the debt is tax deductible to accomplish the goals of the repurchase.

///
they used up all the debt they took on already,
so if they want to buy back more stock with debt, they have to issue more debt
they might decide to do that
I'm not so sure they'll buy back a great deal more stock, especially not at the higher prices seen lately
maybe investors will be satisfied with dividends, plus the buy backs already done
it no longer looks as though that pile of cash is idle