Apple is having to dramatically increase its share price buybacks to keeps its share price increasing.
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Now at nearly $100 Billion per annum.
This should increase the stock price by 10% per annum going forward.
But the great days since 2012 of 30% annual price appreciation are over!!!!!!!!!!!
To keep the share price appreciation going APPLE is having to go increasingly
Deep into the “COYOTE FIELD” going more and more towards “FULL COYOTE”.
i.e. using borrowed money to fund share buybacks
At $100 billion per annum it is not only using up all its annual free cash flow generation on share buybacks.
It will also have to run down its balance sheet cash and investments at a rate of $40 billion per annum.
This means in about 5 years these assets will be gone.
And remember it already has $100 billion of debt on the balance sheet.
After that to still push the price up will require outright borrowing.