Dear Bullish Cross readers. Just wanted to let you know that Apple will probably end 2011 with $81 billion in cash. It will end 2012 with $120 billion in cash and be producing roughly $12 billion in cash flow per quarter by October 2012. If Apple grew at 0.00% in fiscal 2013, it would still end the year with roughly $170 billion in cash or just about $190 in cash for every single share in the company.
If it then carried that 2013 0.00% growth rate into 2014, the company would have $230 billion in cash or just about $250 in cash per share. 2015 it would have $300 billion in cash or $330 in cash per share. Again, that assumes 0.00% growth for 2013, 2014, and 2015. So if Apple grows 0.00%, then by 2015, it will have more cash per share than the stock is trading at today.
Let me let you in on a little secret. Apple is trading at $78 right now. This is the financial crisis. This is your second opportunity to capitalize on that run that a lot of you might have missed when Apple was sitting at $78. There is no chance that Wall Street is going to allow Apple to trade below it’s cash value. Next year is going to be one monumental year for Apple and that’s largely due to the fact that it’s going to flex its cash flow muscles.
While the whole world already discusses Apple’s massive cash holding, they have absolutely no clue just how major that cash flow is going to actually be. If Apple is trading anywhere close to where it’s trading today 2-years from now, it would be able to take itself private with very little outside help. Just something to think about as wall street debates its daily moronic bullshit about whether there’s an iPhone delay, whether Steve Jobs is coming back or whether iPad production is hurt as a result of some explosion in china. I’ll be devoting an article to this issue after the WWDC. I’ll get you the details next week. For now, please see my iPhone revenue estimates, iPad revenue estimates and Macintosh revenue estimates for 2012 as the main driver of my expectations for $150 billion in total revenue.