Apple's cash mountain keeps on reaching for the sky
Cash is king at Apple and the stockpile grows steadily quarter by quarter. What on earth will they do with so much cash which is already worth $67 per share? Already, according to Asymco, Apple’s fund managers handle a portfolio bigger than any hedge fund and the investments rank among the top 100 funds in the world.
Oh, by the way, Apple make computers, iPads, iPads and sell lots of accessories, music tracks and videos. Here are some cash facts from Asymco to ponder:
- The funds are big enough to place Apple’s CFO office in the top 100 largest fund managers in the world and larger than any hedge fund manager.
- Cash growth in one quarter was higher than the market cap of many companies. For example, if pre-payments were added back, the cash increased by about the market cap of Motorola Mobility.
- Current cash is worth more than Nokia, RIM and Motorola Mobility’s market caps, put together.
- Apple’s cash is worth half of Google’s enterprise value.
- About two years ago, in January 2009 the stock traded at a price of $78 with at least one analyst placing a target of $70 on the stock. Today Apple’s cash is worth $67/share.
- If you owned $100,000 of Apple stock, $19,000 of that would be cash and only about $80,000 would be “at risk” capital.
- If Apple had no revenues, the current cash would sustain operations (SG&A and R&D) for over 7 years or until the middle of 2018.