Tuesday, December 12, 2017 10:03:27 PM
1. They have the largest pile of overseas cash (relative to the size of their market cap). Their overseas cash pile is equal to about 34 percent of their market cap... that is huge!!! Tax reform will allow repatriation of that cash at a low tax rate.
2. They are on the record stating that they will use repatriated cash to get much more aggressive with their share buyback program. If they use only half of the repatriated cash for buybacks, the stock could possibly go up 15 percent
More info below
Background on companies with high tax reform repatriation potential
https://www.cnbc.com/2017/09/26/goldman-these-companies-are-headed-for-a-big-tax-break-on-overseas-cash.html
Related info from Cisco earnings call on 15 Nov 2017
James Faucette -- Morgan Stanley -- Analyst
Thanks very much. I wanted to ask a question on capital structure. Can you give us an idea of what your preferences and priorities will be in capital structure in terms of buybacks and acquisitions, etc. if the proposed new tax changes pass versus if that change in tax law gets derailed? I'm particularly curious as to how you're thinking about the pacing of acquisitions versus buybacks, etc.
Thank you.
Kelly Kramer -- Chief Financial Officer
I'll take that one. What I'd say is in terms of acquisitions, the tax policy isn't impacting us either way because we are lucky to have a great cash flow and access to capital. So, it hasn't been stopping us from anything from an acquisition perspective and it won't. So, that will continue.
I would say we're definitely encouraged by the progress that's going on, on the tax reform. So, like we said in the past, when that happens and if we get a repatriation which both plans currently have, we're going to continue like we have, growing or dividend with our earnings growth and where we have opportunity is really to get much more aggressive than we have been on the share buyback and of course we want to make sure we continue to have enough firepower to continue to be able to do the right acquisitions to help position Cisco right for the long term.
https://www.fool.com/earnings/call-transcripts/2017/11/16/cisco-systems-csco-q1-2018-earnings-conference-cal.aspx
God grant me the serenity to deal with the things I cannot change; courage to change the things I can and should; and wisdom to know the difference.
Recent MSFT News
- Coca-Cola and Microsoft Sign Billion-Dollar Agreement, Apple Event Set for May 7, and More News • IH Market News • 04/24/2024 11:28:02 AM
- Stocks Close On Firm Note For 2nd Straight Day On Earnings Hopes • IH Market News • 04/23/2024 09:00:38 PM
- The Coca-Cola Company and Microsoft announce five-year strategic partnership to accelerate cloud and generative AI initiatives • PR Newswire (US) • 04/23/2024 01:30:00 PM
- Futures Pointing To Extended Rebound On Wall Street • IH Market News • 04/23/2024 01:11:27 PM
- Apple Loses Market Share in China, GM Surges in Pre-Market Following Upward Revisions for 2024 Projections, and More News • IH Market News • 04/23/2024 11:25:34 AM
- U.S. Stocks Close On Bright Note Despite Coming Off Day’s Highs • IH Market News • 04/22/2024 08:38:04 PM
- Cognizant and Microsoft Announce Global Partnership to Expand Adoption of Generative AI In the Enterprise, And Drive Industry Transformation • PR Newswire (US) • 04/22/2024 12:30:00 PM
- Nasdaq, S&P 500 Extend Losing Streaks On Tech Weakness But Dow Advances • IH Market News • 04/19/2024 08:32:14 PM
- Paramount’s Shares Surge Following Sony and Apollo’s Joint Bid; ISS Backs Berkshire Hathaway Director Re-election, and More • IH Market News • 04/19/2024 11:31:22 AM
- Tether’s Division Restructure, Aptos-Microsoft DeFi Collaboration, and More Crypto News • IH Market News • 04/18/2024 05:59:13 PM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
- Microsoft investit 1,5 milliard de dollars dans G42 d'Abu Dhabi pour accélérer le développement de l'IA et l'expansion mondiale • PR Newswire (Canada) • 04/17/2024 04:14:00 AM
- Microsoft to reportedly announce new $1.5B AI deal with UAE • IH Market News • 04/16/2024 02:22:28 PM
- Ericsson Soars with 66% Net Profit Growth; Live Nation Under Antitrust Scrutiny in US, and More News • IH Market News • 04/16/2024 11:18:19 AM
- Microsoft Invests $1.5 Billion in Abu Dhabi's G42 to Accelerate AI Development and Global Expansion • PR Newswire (US) • 04/16/2024 05:44:00 AM
- Microsoft Invests $1.5 Billion in Abu Dhabi's G42 to Accelerate AI Development and Global Expansion • PR Newswire (US) • 04/16/2024 04:45:00 AM
- Samsung Surpasses Apple in Q1 Smartphone Market; Salesforce in Talks to Acquire Informatica, and More News • IH Market News • 04/15/2024 11:06:48 AM
- Paramount Global Board Shrinks, Morgan Stanley Faces Regulatory Probe, and More News • IH Market News • 04/12/2024 11:05:29 AM
- Microsoft announces quarterly earnings release date • PR Newswire (US) • 04/11/2024 08:12:00 PM
- Delta Generates US$37 Million Profit in Q1, Google and Intel Unveil Cutting-Edge AI Chips, and More News • IH Market News • 04/10/2024 11:13:48 AM
- Apple Terminates 614 Employees, Disney Unveils June Crackdown on Password Sharing, and More Updates • IH Market News • 04/05/2024 11:38:57 AM
- Cloud Software Group and Microsoft Sign Eight-Year Strategic Partnership to Bring Joint Cloud Solutions and Generative AI to More Than 100 Million People • Business Wire • 04/04/2024 01:00:00 PM
- Cal-Maine Surges on Strong Quarterly Performance, Taiwan Earthquake Disrupts Tech Supply Chain, and More • IH Market News • 04/03/2024 11:12:20 AM
- GameStop Shares Tumble 20% in Pre-Market Trading Amid Revenue Decline, Direct Digital Plummets 42%, and More News • IH Market News • 03/27/2024 10:54:47 AM
Axis Technologies Group and Carbonis Forge Ahead with New Digital Carbon Credit Technology • AXTG • Apr 24, 2024 3:00 AM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM
Avant Technologies Launches Advanced AI Supercomputing Network and Expansive Data Solutions • AVAI • Apr 23, 2024 8:00 AM
BestGrowthStocks.com Issues Comprehensive Analysis of Triller Merger with AGBA Group Holding Limited • AGBA • Apr 22, 2024 1:00 PM
Cannabix Technologies to Present Marijuana Breathalyzer Technology at International Association for Chemical Testing (IACT) Conference in California • BLO • Apr 22, 2024 8:49 AM