Apple's High-Class Problem

The following video is from Friday's Motley Fool Money roundtable discussion with host Chris Hill and analysts Jason Moser, James Early, and Ron Gross.

In this segment, hedge fund manager David Einhorn sued Apple (NASDAQ: AAPL  ) in federal court this week, saying management needs to do more to unlock shareholder value. Since Apple has $137 billion in cash on the balance sheet, Einhorn is pushing for preferred shares of stock with a 4% dividend. While Apple disagrees with the plan, it has spurred the company to begin to look at taking action on its balance sheet cash. The guys discuss Apple's options in deploying capital back to shareholders.

The relevant video segment can be found between 0:24 and 4:12.

There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, after the company's recent backslide, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple and what opportunities are left for the company (and more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

For the full video of today's Motley Fool Money, click here.


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Comments from our Foolish Readers

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  • Report this Comment On February 08, 2013, at 8:40 PM, TimKnows wrote:

    Just an idea here, why not invent something consumers would want?

  • Report this Comment On February 09, 2013, at 2:09 AM, deasystems wrote:

    TimKnows, that's a great idea. If only Apple invented something consumers would want, it'd have some revenue and maybe some profit.

    Shirley, Apple knows it needs revenue and profit?

    C'mon, Apple! Invent something people want!

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