Why Is Apple Hoarding So Much Cash?

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Dec. 30 (Bloomberg) -- Bloomberg's Adam Satariano reports on Apple's cash holdings on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

To oppose the measure.

We will break down the developments with adam and jon erlichman.

I thought it was really interesting they did not seem to fight the proposal at all and really want to put it out there in front of the shareholders.

They are embracing the spirit yes.

They are allowing it to come to a vote and then saying, here it is and please vote against it.

Apple posses argument is they already have a large share buyback and dividend and they are exploring other options that they anticipate making some sort of announcement in the new year.

The same wait and see and not to go with icons planned, which involves taking on new debt and things that they do not want to do.

When we look at the proposal, the call for apple to spend their cash have gone on for years and years.

Do you think they're thinking, look, fine, vote on it and let's put this to rest?

Yes, i think they are comfortable with it.

Apple has the problem a lot of companies which they had.

They generate a lot of cash.

Cash from operations less year, if you go back to the beginning of this year, when apple had its annual meeting, they were very comfortable to have a conversation about the best uses of their capital.

At the time back in february of this year, the activist investor, at the center of everything, was david einhorn.

Now we are gearing up for this meeting where the focus will be another activist investor.

If you go buy some of the language from some of the other investors, we heard from one of the most influential investors in the country, an apple shareholder, which described as a johnny-come-lately, they are totally fine to put in front of shareholders and probably feel they will get a lot of support for long-term investors.

Is there a suggestion they might come up with another plan to put the cash in use?

It is possible.

They certainly have a lot of cash and they continue to generate a town with sales of the iphone and ipad.

They had the opportunity to do that.

Apple went from having no cash return policy to having what is now one of the biggest ones in corporate america.

I think that is why what john is saying is correct.

They have the support of investors who, for a long time, had been pushing them to do something.

Now, what they have been doing, the $100 billion plan that is supposed to roll out over the next several years, that is not pocket change.

It is a lot of money.

Even to a guy like me.

I also wonder, some of the analyst notes are suggesting they would come out with yet another plan to put more of the cash to use.

You wonder, the scars of apple posses near-death experience from over a decade ago, still linger over the company.

That is absolutely -- it absolutely could be the case.

At the same time, we know that even if they are developing a television, a smart watch, and countless other things that make him out over the next couple of years, they would not need all of this cash to go down those roads.

They can still do it.

I think what is interesting is you have got to take the financial picture, the timing of a meeting like this, and put it all together.

A lot of people have told this story over the last week about apple posses stock performance this year versus the rest of the market, disappointing, perhaps, to some, and yet i was looking at the stock performance since the annual meeting last year, and the shares have rallied about 25% since that meeting into the end of the year.

There may be a different tone

This text has been automatically generated. It may not be 100% accurate.


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