Apple's Pending Euro Bond Issue

Per multiple news reports (Bloomberg story link here), Apple is looking to issue Euro based debt. Some thoughts on this are below:

- There is the thought that this debt will be used to buy back shares. This gives some credence to the idea that Apple feels that its stock is undervalued, even at these all time high prices.

- A dividend increase would also not be surprising.  It also gives credence to higher stock price.

- As this information was not in the last conference call, some analysts will be forced to adjust their guidance to their clients. The guess is that guidance will be raised.

All of this generally will have a positive effect on the stock price. Add product sales numbers to the mix and the probability of a higher stock price is near certainty. It is becoming quite clear that Apple is in a sweet spot right now. Their financial engineers are clearly on the same page as their product engineers. Their management has everyone on the same page.

Disclosure - KDK Options owns a December $130 call

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