Apple’s stock buy back plan is set to start this week. The program, approved by Apple’s board back in March, kicks off a three-year, $10 billion stock repurchasing program. The main objective: “neutralizing the impact of dilution from future employee equity grants and employee stock purchase programs.”
According to Fortune journalist Philip Elmer-Dewitt, plenty of analysts were displeased with Apple’s decision:
[quote]No Apple analyst had pushed harder than Sacconaghi for the company to give some of the billions it had accumulated back to the shareholders — by which he meant the institutions that hold roughly 70% of Apple’s shares. He made no secret of the fact that he was disappointed with Apple’s plan. “For a company that prides itself on thinking differently,” he wrote to clients that night, “Apple’s announcement reflects a pretty vanilla return of cash program.”[/quote]
Yesterday marked the beginning of the three-year plan. A lot of shareholders are about to see an infusion of cash over the next three years. Sadly, I own zero Apple stocks.
Via: TUAW
