Apple raise $17B for bonds to buy back its stocks?!

[比花花还花]

Apple is making preparations to raise $17B in international and domestic bonds in order to help finance its stock-repurchase program, which the company has increased to $90B from $60B.

So... I guess AAPL think it can profit out here. Borrow at 5-6% loan and then get more ? from repurchase its stocks. Plus all the operational cost (usually 1%? ), it can make some $ out of this.

大佬们， 怎么看？

[jeepster]

1) the prime rate would go nowhere but up, even though nobody knows when would happen
2) Apple's credit rating more likely would go down than up, aka, need pay more interests to borrow.

[ecbb]

[njrookie]

is reflecting the fact that it is now a value company, instead of a growth company. it is becoming the new msft. you can only do so much financial engineering to create value without a new innovative product.

there is nothing wrong with it. just a natural development of a firm's life cycle.

[jeepster]

[njrookie]

WB got fooled for IBM. WB likes stable CF growth. However for the case of IBM, CF growth in last few years is largely a result of FE. FE can only go so far. WB is paying the price now.