Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Microsoft Corporation (MSFT), Apple Inc. (AAPL): Fined For Working Late?

If you are like me, that’s never happened — but it can, even to underage Americans. Apple Inc. (NASDAQ:AAPL) was fined when a Paris court found them guilty of forcing workers (not underage) to work until 11 pm after the store closed at 9 pm. The median American household income is just over $50,000/year — if this was lobbied against the typical American family, the fine would be approximately $0.005.

This $13,000 fine, to a company that generated over approximately $156.51 billion in 2012, would hardly be considered a slap on the wrist. However, the company better watch out as they will be fined an additional $65,000 if they are found violating the labor law again. What were they fined for? French law requires that employers release employees between 9 pm and 6 am unless the company provides social services, or the company is there to maintain economic activity. The Apple Inc. (NASDAQ:AAPL) stores were open until 9:00 pm, but kept employees until 11:00 pm for cleaning and organization purposes. Yes, that additional $65,000 potential fine is equivalent to $0.021 of the average American household income, but that is the “threat” that Apple was given.

Ok, so maybe Apple will not work its employees between those hours again, but I don’t think it’s the fine that will stop them. After all, the company’s gross profit for 2012 was well over $68.6 billion (43.9%). Apple’s market cap has grown 545% since 2008, and currently holds a 11.2% Free Cash Flow, or FCF, yield. I don’t know how low the stock will drop and honestly won’t make a prediction as there are so many variables, but Apple Inc. (NASDAQ:AAPL) does show promising metrics in virtually every area besides its stock price.

With revenues in excess of $73.7 billion, Microsoft Corporation (NASDAQ:MSFT)’s fine would have been equivalent to $0.009 to an average American’s annual income. However, Microsoft wasn’t fined by a Paris court and will be able to keep its full $27.6 billion in FCF. Gross margins for the company are a remarkable 76.2%, which led to approximately $56.2 billion in gross profit. Microsoft’s earnings per share, or EPS, have risen seven of the past ten years (Apple’s EPS have risen ten of ten, by the way), but dropped from $2.69 to $2.00 in 2012. Finally, Microsoft Corporation (NASDAQ:MSFT)’s FCF yield is 11.8%.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.