Apple and Einhorn: Brian White of Topeka Capital Markets always has a lot to say about Apple Inc. (NASDAQ:AAPL). Most recently, he talked about how the Cupertino-based company is in position to “seize the opportunity” by giving more of a cash return to investors.
White is projecting that Apple Inc. (NASDAQ:AAPL) will have roughly $241 billion in cash by the end of fiscal year 2015. With the company continuing to hoard cash, he believes that a change is coming at some point in the near future, most notably that the company will pay out more cash to shareholders.
AppleInsider was nice enough to share some of the quotes provided by White on Thursday:
“Since over $94 billion of the net cash is outside of the U.S., we believe David Einhorn’s perpetual stock makes sense. Also, Apple could tap into the debt market to increase its U.S. cash position, using the proceeds for an increased common stock dividend and an expanded stock repurchase program.”
He strongly believes that Apple Inc. (NASDAQ:AAPL) is in position to “increase its cash dividend payout from its current $3.75 to $5.00 per share on a quarterly basis.”
It is interesting to see that White and Einhorn are on the same page as far as what Apple should be doing next. The article goes on to add:
“In particular, he noted that the 36 percent decline in Apple’s stock since late September represents a shift in the company’s shareholder base. Like Einhorn, White believes a more significant return of cash will attract value-oriented investors.”
It is important to note that White is not stuck on the fact that Einhorn is “married to the idea” of perpetual preferred stock.
At this time, Topeka Capital Markets is holding steady on its price target of $888.
How do you feel about these thoughts by Brian White regarding Apple Inc. (NASDAQ:AAPL)? Share your opinion in the comment section below.
Check back here for more updates on Apple and Einhorn.
DISCLOSURE: I have no positions in any stock mentioned.
For more Apple news stories, visit these pages: