HBC: I honestly enjoy Samsung but personally, I believe that no matter how bad things get, Apple will never stop selling, Apple will never sink!
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| APPLE's Logo |
-Apple shares had lost 45% since last September, as rivals such as
Samsung have eaten into the smartphone market it used to dominate and
its iPad has faced similar challenges.
-Apple is asking investors for
$17bn which makes this the
biggest ever bond issue by a non-banking company.
-The bonds are being sold in New York.
-By midday New York time, Reuters were reporting the company had
received orders for $50bn, about three times the amount being offered.
-The money will be used to fund special payments to shareholders who,
after years of seeing their shares rise in value, have become frustrated
in recent months.
-Although this month Apple reported its first quarterly drop in
profits in a decade, it said it would raise dividends for shareholders.
-It made a net profit of $9.5bn in the January to March quarter, down from $11.6bn last year.
-It is unusual thing - Apple is borrowing lots of money when it has $145bn in cash sitting in the
bank.
-Most of that money, though, is sitting in accounts outside the United
States and will be liable for US taxes once it is repatriated.
-That makes it cheaper for Apple to raise the money through a bond
issue – its first – even though that will attract interest payments.
-The company has also said it plans to buy back $60bn in shares, and raise its dividend to shareholders by 15%.
Culled from The Herald.
In a related story...Russian Billionaire Alisher Usmanov Bets $100 Million On An Apple Comeback.
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| Alisher Usmanov |
While Apple was crashing, Russian billionaire Alisher Usmanov was buying.
He told Bloomberg he bought $100 million worth of Apple as it fell, though he didn't specify where he bought in.
He explained the investment, saying,
"I believe in the future of this company even after Steve Jobs ... When the company lost $100 billion of its market value, it was a good time to buy its shares, as the capitalization should rebound."
He also said, "for the next three years I believe Apple is a very promising investment, especially given large dividend payments and buybacks."
Usmanov is well-known in the tech industry for investing in Facebook when it was valued at $6.5 billion in 2009. That investment netted him a $1.4 billion return, according to Bloomberg.
Apple's stock, which had been getting wrecked, appears to be making a slow comeback now that investors have digested all the news from its earnings report.
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