Investor Carl Icahn reveals 'large position' in Apple, advises Tim Cook to buy back more stock [u]
Billionaire investor Carl Icahn spoke with Apple Chief Executive Tim Cook on Tuesday about potentially increasing the company's share buyback program, while also revealing his holding company currently has a "large position" in the iPhone maker.
Icahn took to his official Twitter account on Tuesday to tell followers that he believes Apple is "extremely undervalued" at its current share price. He is the majority shareholder of diversified holding company Icahn Enterprises, which had $15.39 billion in revenue in fiscal 2012.
The billionaire also revealed he had a conversation with Apple's CEO on Tuesday, in which Icahn shared his belief that "a larger buyback should be done now." Apple announced plans to boost its quarterly dividend and buy back shares at a cost of $100 billion through 2015.
Icahn said Tuesday that he plans to speak with Cook "again shortly." After his tweets were published, shares of AAPL shot up by more than 4 percent.
Update: After Icahn's comments gained publicity, Apple offered comment to The Wall Street Journal: "We appreciate the interest and investment of all our shareholders. Tim had a very positive conversation with Mr. Icahn today."
Apple spent $16 billion last quarter alone on repurchasing 36 million in shares. The original schedule had called for the company to buy 10 million in shares in the third quarter, but Apple apparently decided to push harder and buy at an average share price of $444.44 ??more than $250 off from the company's high of $702.10 reached last September.
The investor has made headlines in recent weeks for his opposition to Dell's attempts to take the company private. Icahn opened his Twitter account in June with a joke about his ongoing spat with the PC maker: "Twitter is great. I like it almost as much as I like Dell."
While Icahn's feuds with Michael Dell and the Dell Board of Directors are well known, the billionaire's bullish take on Apple wasn't revealed until Tuesday.
Icahn took to his official Twitter account on Tuesday to tell followers that he believes Apple is "extremely undervalued" at its current share price. He is the majority shareholder of diversified holding company Icahn Enterprises, which had $15.39 billion in revenue in fiscal 2012.
The billionaire also revealed he had a conversation with Apple's CEO on Tuesday, in which Icahn shared his belief that "a larger buyback should be done now." Apple announced plans to boost its quarterly dividend and buy back shares at a cost of $100 billion through 2015.
Icahn said Tuesday that he plans to speak with Cook "again shortly." After his tweets were published, shares of AAPL shot up by more than 4 percent.
Update: After Icahn's comments gained publicity, Apple offered comment to The Wall Street Journal: "We appreciate the interest and investment of all our shareholders. Tim had a very positive conversation with Mr. Icahn today."
Apple spent $16 billion last quarter alone on repurchasing 36 million in shares. The original schedule had called for the company to buy 10 million in shares in the third quarter, but Apple apparently decided to push harder and buy at an average share price of $444.44 ??more than $250 off from the company's high of $702.10 reached last September.
The investor has made headlines in recent weeks for his opposition to Dell's attempts to take the company private. Icahn opened his Twitter account in June with a joke about his ongoing spat with the PC maker: "Twitter is great. I like it almost as much as I like Dell."
While Icahn's feuds with Michael Dell and the Dell Board of Directors are well known, the billionaire's bullish take on Apple wasn't revealed until Tuesday.
Comments
Icahn is famous for butting heads with CEOs - Watch out Tim!
Just great. This guy is the last thing Apple needs.
Tim should offer to buy back his shares, specifically, so he can take a hike.
I could imagine if this occurred in the past, Steve would get with Larry E and tell this guy to f'off or they raid all his holdings! Cant ever see Tim doing that.
Ok... now its time to say it- Apple is Doomed!
Correct me if I am wrong but if Apple buy back more stock and Icahn holds, wouldn't that eventually make him the largest shareholder by far and give him more control over Apple?
a crap... this is as good as Loeb over at SONY. Tim needs to stand his ground if he needs to just like Kazuo Hirai did.
He's turned around many companies and has been in the news a lot over the past year for his involvement with both NetFlix and Dell. He tremendously helped NetFlix's share price performance over the past year and a half after he announced his stake. As someone who wants less focus on Apple's declining share price and more focus on new product innovation, this should be a positive news bit.
Also, he came to Herbalife and its CEO's defense this summer, taking on so called "greedy slimy manipulators". He's not a manipulator, he just knows value when he sees it. I am very happy he announced his stake.
Ha no. He, by law, has to disclose his positions in his 13F filings. The news would have come to light anyway. The fact that he posted it on twitter in no way means he "manipulated" the market. This site throws around "manipulated" way too loosely. The stock moved because people respect him. He thinks the stock's undervalued, other people follow his lead. If I announced tomorrow I bought a stake, that doesn't mean I manipulated the market. That's silly.
The largest shareholder has over $19b invested in Apple. I highly doubt Icahn invested anywhere near that much. He invested $320m in Netflix. He invested in Dell too:
http://business.financialpost.com/2013/08/01/carl-icahn-sues-dell-in-latest-attempt-to-foil-us24-4-billion-buyout/?__lsa=cd79-4685
He can be influential with other shareholders though despite not having a majority share. It doesn't sound like he's investing in Apple in order to enact any changes.
Quote:
Originally Posted by Creid1987
Ha no. He, by law, has to disclose his positions in his 13F filings. The news would have come to light anyway. The fact that he posted it on twitter in no way means he "manipulated" the market. This site throws around "manipulated" way too loosely. The stock moved because people respect him. He thinks the stock's undervalued, other people follow his lead. If I announced tomorrow I bought a stake, that doesn't mean I manipulated the market. That's silly.
My do we have an outsized opinion of one's influence! You can announce all you want about your stock purchases and it would not move the market one iota. Even if you tried, you won't be able to manipulate the market.
You think Icahn isn't aware that what he says will move the market? He sure did manipulate the market but he did not break any laws.
Not talking 13D, 13F is just reporting of holdings. 13D is required when you cross 5% threshold.
https://whalewisdom.com/filer/icahn-carl-c-et-al
http://www.sec.gov/answers/form13f.htm
imo Apple did what it had to do regarding dividends and buybacks. It should not add more but instead focus on innovation and small acquisitions.
I think we just got a "Blue Horseshow Loves Anacott Steel"
He bought over $1bn of Apple stock fyi.
Again, you guys are using manipulate in the context of a marketplace too loosely. Connotations matter.
http://en.wikipedia.org/wiki/Market_manipulation
Quote:
Originally Posted by zoetmb
Wait a minute...Icahn announces publicly that he has a large position and that he's advised Apple to buy back more stock? Isn't that a manipulation of the market? Based on that announcement (and probably Foxconn's announcement of increased profits), Apple stock is up $20 today. How much did Icahn make in one day based upon his announcement?
Anyone is allowed to publicly acknowledge his/her positions in the market. The trouble occurs when you secretly let some people in on it so that they can profit to the detriment of others.
The fact that publicizing his actions amounts to a self-fulfilling prophecy is more power to him and something he has earned through past successes. We should all be so lucky.
Thompson
Quote:
Originally Posted by Creid1987
He bought over $1bn of Apple stock fyi.
Again, you guys are using manipulate in the context of a marketplace too loosely. Connotations matter.
http://en.wikipedia.org/wiki/Market_manipulation
To which source do you attribute the $1 billion figure?