Apple announced it will hold a press conference tomorrow at 9:00 a.m. EDT concerning their $100 billion cash reserve:
Tim Cook, Apple’s CEO, and Peter Oppenheimer, Apple’s CFO, will host a conference call to announce the outcome of the Company’s discussions concerning its cash balance. Apple® will not be providing an update on the current quarter nor will any topics be discussed other than cash.
A few possibilities immediately come to mind:
- Apple could announce that they are issuing dividends to investors. They haven’t done so since 1995 and it seems too minor to warrant a conference call.
- Apple might consider buying back stock to increase earnings per share. However, that seems unnecessary given their earnings growth.
- Apple could announce a large acquisition - the target possibilities are endless. However, Apple hasn’t historically made such acquisitions.
- Apple might announce a strategic investment, perhaps in manufacturing infrastructure or component supplies.
What will it be? Your guess is as good as mine. I’d prefer to see an investment in manufacturing, but it may end up just being a dividend.