Time To Catch A Falling Apple

In recent months, investor perceptions of the company have undergone a tectonic shift. People are starting to realize Apple is now too big an enterprise to keep growing at the heady rates of yesteryear. As momentum-driven “growth” investors exit the stock, the share price is coming down to levels that have begun to make sense for long-term value investors.

While David Einhorn’s quixotic crusade to get AAPL to issue a special class of preferred stock seems to be running out of gas, I think CEO Tim Cook will soon persuade the company’s board to do something much more dramatic and effective. Possible steps at tomorrow’s shareholder meeting include a monster dividend increase, a stock split or a buyback — or perhaps all three at once. I figure AAPL could raise its dividend 50%, buy back $20 billion of stock annually — and still not put a dent in its cash pile!

Source: InvestorPlace

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