Apple Makes A $14 Billion Acquisition

Apple keeps on adding the "Benjamins" to its cash portfolio. Savvy investing by Tim Cook in shares of AAPL makes Apple even more valuable.

Apple keeps on adding the “Benjamins” to its cash portfolio. Savvy investing by Tim Cook in shares of AAPL makes Apple even more valuable.

iMaker invests aggressively in AAPL!

While other cash flow positive companies go out buying all sorts of businesses that don’t necessarily make a good fit, Apple makes a $14 Billion acquisition in itself! Apple certainly knows a good deal when Tim Cook sees it. The company gobbled up more than 122 million shares of itself after those Wizards of Smart on Wall Street pruned back the AAPL share price by almost 30%.

Apple went above and beyond what was planned for in the company’s accelerated share buy back plan. Apple had retired 10 million shares already in its official repurchase plan. The $14 Billion Apple invested in AAPL was done so in the open market.

Making the deal even sweeter was the method Apple used to make the purchases. Apple used the revenue generated in its bond offerings rather than its own horde of cash. Why did the iMaker do this you might ask when it’s sitting on more than $200 Billion in cash and cash equivalents? The answer is quite simple.

Apple is paying a mere 2% interest of the money generated by the bond sales. Had the iMaker used any of its offshore holdings, it would have incurred a 35% tax bite. The Apple shareholders love it. The reduction in outstanding shares drives Apple’s earning per share even higher.

That in turn forces the Wizards of Smart on Wall Street to eat a big dose of humble pie. They also are forced to put off the “Apple is Doomed” mantra until their next fake rationale for dumping their AAPL shares. The only ones not happy about Apple’s debt strategy are the Federal Pigs feeding at the tax trough in Washington. Too bad for them!

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