Apple Inc. (AAPL): Einhorn Got What He Wanted

Which companies will follow Apple?

Apple Inc. (NASDAQ:AAPL) hasn’t been the only company hoarding cash. Microsoft Corporation (NASDAQ:MSFT) has mastered that practice way before Apple did. Mr. Softy currently maintains $68 billion on its balance sheet, or $8.13 per share. Similarly to Apple, 30% of the share price of Mr. Softy consists of pure idle cash. It’s worth noting that Microsoft shares have surged 10% in the past 2 weeks on the news that ValuaAct, a activist shareholder fund, took a $2 billion stake in Microsoft Corporation (NASDAQ:MSFT). I firmly believe that things are starting to turn at the company and that future shareholders will be greatly rewarded.

Cisco Systems, Inc. (NASDAQ:CSCO), the provider of plumbing services for the Internet is another cash-gushing monster. Cisco currently has $45 billion of cash on its balance sheet, or $8.50 cash per share, a whopping 40% of its share price. The company grows its earnings at an annual clip of 17% with a gross operating margin of 23% which explains perhaps why it’s able to accumulate so much cash, so fast. With a relatively modest dividend yield of 2.5%, Cisco’s annual dividend definitely has some room to grow. It should.

The Fool looks ahead

There’s a wind of change in the air. Apple Inc. (NASDAQ:AAPL)’s move towards larger buybacks and greater dividends marks the beginning of a march by shareholders to try and unlock value from big tech companies. With massive balance sheets filled with cash, I believe that Microsoft Corporation (NASDAQ:MSFT) and Cisco are heading that same path. Invest accordingly.

The article Mr. Einhorn, You Got Your Wish! originally appeared on Fool.com.

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