Replies to post #10135 on Apple Inc (AAPL)

[langostino]

fmikehugo - understood

Mentioned that stuff just in case.

An owner dumping 15% of outstanding shares can create a pretty huge weight on a stock price.

But also, dividends achieved by borrowing from the balance sheet are by definition unsustainable in the longer term, and usually are found in stagnant and declining businesses trying to artificially prop up their stock prices.

In the case of CHT, you're talking about a company with declining marketshare, in a stagnant market, in a country with demographic trends and national economy working against it.

Here in the states, SBC holds an overwhelming dominant position in its regional market, offers a 5% dividend and carries high ratings from the bond-rating agencies due to its cash flow -- but I wouldn't touch it with a 10 foot pole. Until it invests in a whole new infrastructure, it's in an eroding business.