Earlier this week, the financial press was over the moon about a Citigroup equity research department report. The completely unironic title: "Addressing the Problem of Too Much Cash."
In the report, analysts Jim Suva and Asiya Merchant discuss the possibility that post-tax-reform Apple Inc. (Nasdaq: AAPL) brings home its $220 billion cash stockpile that is currently overseas and uses it for a takeover of other media or technology companies.
The two intrepid research analysts tell us, "the firm has too much cash – nearly $250 billion – growing at $50 billion a year. This is a good problem to have. Historically, Apple has avoided repatriating cash to the U.S. to avoid high taxation. As such, tax reform may allow Apple to put this cash to use. With over 90% of its cash sitting overseas, a one-time 10% repatriation tax would give Apple $220 billion for M&A or buybacks."
Oh, boy! Well, that is kind of the obvious answer, but this sounds like great news for shareholders. Right?
Let's hear some more bottled sunshine from Citi… before I blast a few ugly, jagged holes in its analysis and show you where the deals really are…
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