Some weird guy named Toni Sacconaghi just won’t give up the ghost. Phillip Elmer-DeWitt in Fortune. The setup:
For more than two years, Bernstein Research’s top Apple (AAPL) analyst been after Steve Jobs to spend some of the company’s growing cash hoard ($51 billion as of September), preferably on a stock buyback or cash dividend.
Why does Apple need to buy back stock or give a dividend? Is a record price not enough of a dividend for shareholders? Will a stock buyback make the stock double?
He found that Apple was held by 9 out of 10 top growth funds, representing nearly 6% of their total portfolios. By contrast, the stock was held by none of the top 10 value funds he examined.
Could that be because Apple isn’t a value stock at $320 a share? His argument?
So many institutional asset managers already own Apple, he says, that unless the company starts distributing some of that cash to shareholders, there will be nobody left to buy the stock.
Somebody is buying Apple stock. Weird.