A Fool Looks Back

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Everyone seems to be treating Apple's (NASDAQ: AAPL  ) balance sheet as if it's a pinata these days. Morgan Stanley analyst Katy Huberty became the latest Wall Street pro to argue that the tech giant should ease up on its purse strings.

If Apple would devote the IT industry average of returning 68% of free cash flow to investors, the result would would be a hefty 6% yield. Apple could also be more aggressive with its share buybacks. However, it needs to be pointed out that the majority of Apple's cash is overseas and would face stiff repatriation taxes if it were to be brought back for either purpose.

More importantly, Apple hasn't been a laggard in recent months because its yield is too low. The market's genuinely concerned about the company's future. The smart money is on lower margins as Apple competes against cheaper mainstream products. Until Apple can prove that it can retain its market leadership without sacrificing its juicy markups, a lot of growth investors will remain skeptical.

Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.

  • The Herbalife (NYSE: HLF  ) story took an interesting turn after billionaire activist Carl Icahn revealed a 13% stake in the company in an SEC filing. Icahn has been debating the merits of Herbalife, but now he's putting his money where his mouth is.
  • CenturyLink (NYSE: CTL  ) tumbled after slashing its dividend. The move sent shares of other regional telcos with potentially unsustainable yields lower, too. Sometimes you can't just phone it in, folks.
  • Blue Nile (NASDAQ: NILE  ) fell well short of Wall Street's revenue and profit targets in its latest quarterly report. The online retailer's engagement-ring business held up, but it was the rest of the high-end jeweler's business that stumbled. Investors got jilted at the altar.

We've taken a look back, but now let's look at your future
While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. In our free report "
3 Stocks That Will Help You Retire Rich," we name stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 16, 2013, at 3:34 PM, sammycooool wrote:

    Absolutely noone has faith in the management to do anything good with the money. Get it out of there while you still can. Apple is dead for 2013.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2260171, ~/Articles/ArticleHandler.aspx, 9/27/2016 1:37:20 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,225.67 130.84 0.72%
S&P 500 2,159.91 13.81 0.64%
NASD 5,298.05 40.56 0.77%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 1:21 PM
AAPL $112.80 Down -0.08 -0.07%
Apple CAPS Rating: ****
CTL $27.44 Up +0.13 +0.48%
CenturyLink CAPS Rating: **
HLF $61.10 Down -0.03 -0.05%
Herbalife CAPS Rating: *
NILE $35.40 Down -0.04 -0.11%
Blue Nile CAPS Rating: **