Boston, MA 03/05/2014 (wallstreetpr) – As shareholders like Ichan and Enhron push Tim Cook to squeeze more “wallet value” for their shareholdings in Apple Inc (NASDAQ:AAPL), Cook has for the time being resorted to Share Buy Backs. But this does not mean that he is not moving forward on product innovation and creation of real value for his share holders. Just that his focus is on “long-term interest of the shareholders” not the “short-term shareholder….. day trader”, as he said in an interview on Feburary 7h.
Tim was discussing the effects of February trench of the $60 billion, share buyback plan announced last year. For investors like Icahn, who have been eyeing up the $1.6 billion cash hoard for want of more buybacks, Tim’s answer was, “We may see a huge company tomorrow that we want to acquire”.
Larger institutional players have been fighting for more value in dividend or share buybacks. On the other side of the table, there are the non-institutional iFan-Investors who have been complaining over the lack of product innovation. The puzzle is getting more and more perplexed over time; riddled with word wars over and over. However, Tim seems to have an answer to both the issues.
Keep Liquidity For Buying Elswhere
He plans to continue the previously announced $60 billion share buy-back. It will raise the stock ticker on the screener and help pay more dividends per share, but there won’t be any new repurchase accords. A firm grasp on the current liquidity which he could use later to build innovative portfolios like BlackBerry Inc (NASDAQ:BBRY) did with QNX software systems last year. Many investors have been hinting out that the cash which this company spent on buy backs to date could have been more than enough to buy Yahoo Inc (NASDAQ:YHOO). The digital media company has 26% stake in Chinese eCommece site AliBaba.com.
A FlashBack On Tim’s Insights
In the last years’ shareholder meeting the Tech-CEO said he needed more fun and it seems he has not had enough, “fun”, as yet! ….or, probably he does not want to share the fun with the rest of 68% institutional owners in the iHit maker he created from scratch. He is instead, planning to take the bottom line to the next level for long tern sustainable profits.
Growth by acquisition is always a strong precursor to product innovation and market share growth. Apple Inc (NASDAQ:AAPL)’s latest iPhoen is using the platform from Blackberry (NASDAQ:BBRY) owned QNX software system, in its car-connected applications.
