IB Net Payout Yields Model

Apple: Time To Unleash A Massive Buyback Program

With the stock price plummeting to 52-week lows, Apple (AAPL) should immediately unleash a massive buyback plan. A plan with the size and scope that it materially reduces the shares outstanding and provides support for the stock.

Clearly signs exist that the company has exited the massive growth phase of the last decade with a load of competitors constantly attempting to undercut the price and performance of its smartphone and tablet products. Apple though isn't entering a feared phase of flat stock performance similar to the often compared decade of disappear at Microsoft (MSFT). Investors continue to miss the drastic difference between the valuation prospects of both stocks at those starting points.

As highlighted a month ago (see Apple s Cash Balances Approaching $150B), Apple needs to adopt a material plan to absorb the constant cash inflows. The recent success of the buyback program of Yahoo! (YHOO) should energize a market that typically frowns on buybacks.

Read the full article at Seeking Alpha.

Disclosure: Long AAPL. Please review the disclaimer page for more details. 


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