Apple should split 10 to 1 and buy Intel for cash
I can't read the minds of the Apple Board but I suspect they are stupid political appointees in need of the exits. Here we have a company that really knows how to stock pile cash but somehow managed to look like they are falling apart.
Part of the problem is perception. Fist why does Apple insist on haivng stock that is $500 a share? They have opened themselves up to the Hedge fund short sellers that love a nice big fat even number which looks expensive even if its not. Thats psychology. Instead this $500 share price acts like a Voodoo curse on Apple and the jungle drums are beating tonight.
What should Apple do? They should call a 10 to 1 split and rid themselves of the $500 black monkey clamped to their backs. A cheaper stock is psychologically more appealing to smaller investors and large institutions as well.
My second thought is that stockpiling $138 billion looks stupid and makes the company look mismanaged. So they need to buy something big. I have searched the landscapes and have decided that Apple should buy Intel.
Intel is a $64 billion dollar company that is mismanaged. There present CEO needs to leave. He has missed virtaully every chip in the handheld world and has set up a plan to spend $13 billion on R&D just as he is heading out the door. This is extraordinary bad form. The only thing more destructive he could do is bring in a woman as the new CEO.
Apple could easily buy Intel and it would give Apple the secrecy that Jobs always craved. Plus it would really complicate things for Steve Ballmer though Gates could continue to short MSFT as he has for the last year.
That's it; That's all I have to say: Apple should reverse split 10 to 1 and should buy Intel for cash.