Reuters - Video

EDITION: U.S. | U.K. | IN

Finance Videos

Breakingviews: Apple iCash

Tuesday, February 12, 2013 - 03:11

Feb 12 - Jeffrey Goldfarb talks to Breakingviews columnists about David Einhorn's creative idea for Apple's cash and whether it's the best option for the company's shareholders.

▲ Hide Transcript

View Transcript

Never dull moment at apple yes very bad news surface of the possibly do I watch coming. As we record this Tim Cook is on stage out on the West Coast talking about a number of things. Including a proposal from green like capital off founder David Einhorn about a way to maximize the value of the cash. Almost -- 140 billion dollars worth that's on Apple's. Books Richard you're a look at this proposal that David -- and on Friday what he is talking about face and the issuing -- preferred stock which carries a particular coupons a full percent. The idea being you can -- crystallize value in -- sense -- that saying this bit of -- Tesla is worth this much. And then the rest of apple of regular common stock is probably still woods. This much which is pretty much what it is -- -- -- Missing hidden but I would also mean there are so isolated that's the yields. On that on that would be hired him would be afraid to step up -- and right now yeah right but also it's a more concrete instruments as a specific. We're right I think I think one of the things you see that apple -- it's not like the dividend yield is infinitesimal these bullets they're tied for tech companies but he loved it to it doesn't translate into capital value now and she'll cook. Tim Cook at apple and everybody else there is thinking about whether they need to address putting in the rest can especially adding -- it plus a quarter of maybe twenty of those fortunate thing he said and it seems unlikely that they would. Jump immediately to do some English definitely has been as bad sort of. Welcoming our guests what final out of -- I have apparently came out apple came out that we're at the board is actively examining what to do just. Pretty rare news for apple to make a statement like I -- wasn't exactly at the conference today Apple's exit at the bit defensive saying that we don't have this depression or mentality. You know pointed out we have pretty hyperbolic kind of yeah greater than -- exactly saving streak in the basement tied to think that the. If he does seem to mean it would certainly be an official everything you said yet but it seems like he's saying we sort of setting the stage. For some sort of release of cancer cells whether time running dividend or special dividend of some kind played Microsoft has done in the polls for instance. This is unarmed proposal I mean people are calling it creative including apple. But it is as high praise were created a company like apple but. Is it to create a visit to many bells and whistles they are better more effective way to do that yet -- easy just give back cash I mean if he can with what happens and when Microsoft return cash and in 2004 they had about. I think it's fifty billion of cash account should they return thirty billion. Investors and the stock -- -- didn't like if you look at it before the dividend and six months afterwards is about the same level. But he pink about that are returned thirty billion so therefore even the value to investors are using a thirty billion better off you know after after trying to catch investors. So should investors didn't really. Give any values this cash in the balance sheets that thinks that we're tapping to apple and it seems like an easy way to crystallizes it's just get back to them. -- keep an eye on apple of course and Tim -- were remarks today. We've got more breaking news tomorrow.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Breakingviews: Apple iCash

Tuesday, February 12, 2013 - 03:11

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Thu, Jul 03, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)