Apple’s (NASDAQ: AAPL) balance sheet shows $269 billion in cash and cash equivalents.
Of that jaw-dropping Apple cash, $252 billion (nearly 94%) is held in foreign accounts.
You could claim a share of Apple’s foreign cash. RSVP today.
The percentages are set to change.
Most, if not all, of Apple’s foreign cash is headed home.
Apple announced last week that it would pay a one-time tax of $38 billion on its foreign cash. (That sounds right. The Tax Cut and Jobs Act of 2017 applies a 15.5% tax to foreign earnings.)
The tax would reduce the foreign-cash account to $214 billion.
We’re still talking about a gargantuan number. Apple’s foreign cash alone (even net of taxes) exceeds the gross domestic product (GDP) of two-thirds of the world’s countries.
So, what will Apple do with this cash tsunami once it has settled into the domestic account?
The company is certainly saying the right things from a PR perspective. It was quick to note that it would create a $5 billion fund to invest in U.S. manufacturing.
Great, but $5 billion barely registers as a rounding error. What about the rest?
Apple also said that it would allocate $30 billion of the Apple cash to capital expenditures (CAPEX) over the next five years.
Another big standalone number, but in the grand scheme of a vast empire, it’s a nonevent. Apple spent $14.9 billion in CAPEX in the last fiscal year alone.
Executives were keen to chat up the spending potential. They say Apple will spend $350 billion in the U.S. economy over the next five years.
Is that figure really needle-moving, though?
Apple’s spends roughly $55 billion in the United States as it is. It’s already on track to spend $275 billion over the next five years.
In other words, the Apple cash repatriation plans were noncommittal, but that fact hardly dampened the enthusiasm of the federal government’s chief executive.
“Great to see Apple follow through as a result of TAX CUTS,” President Trump gushed in a tweet. “Huge win for American workers and the USA!”
Or it could be a huge win for the owners of Apple’s liberty vouchers.
Add your name to our list of liberty-voucher owners today.
I base my conjecture on a precedent.
U.S. corporations were offered a similar repatriation tax holiday in 2004.
How did U.S. corporations respond 15 years ago?
They repatriated 45% of the $800 billion they held in their foreign accounts. But little of the repatriated money was used to fund new investment. Even less was used to increase the employee count.
Most of the repatriated cash was diverted to stakeholders, including liberty-voucher owners.
CNN found that for every dollar repatriated, $0.60 to $0.92 was paid to corporate stakeholders.
Apple’s repatriated cash could lead to a huge one-time liberty-check payment. I estimate up to $44 per liberty voucher.
Even a modest investment in Apple’s liberty vouchers could produce a $2,246 (or more) liberty check for any investor.
Opportunity abounds. Apple’s potential liberty check could be the first of many to come.
U.S. companies have accumulated nearly $3 trillion in offshore cash.
Alphabet (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) hold over $100 billion each in foreign cash holdings. Cisco Systems (NASDAQ: CSCO) holds over $70 billion.
These companies have the same potential to reward liberty voucher owners with large liberty checks like Apple’s potential liberty check.
Now is the time to lock in the potential opportunity.
The Liberty Voucher Program is paying $1,175 in liberty checks every 20 days (on average).
We expect a record number of liberty checks to be declared in the second half of 2020. Could an Apple liberty check be among them?
Click here NOW to enroll. The deadline is today.
It’s FREE, but space is limited.
Good Fortunes,
Stephen Mauzy