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Apple's largest active shareholder cuts stake by 10%

post #1 of 95
Thread Starter 
Equity mutual fund Fidelity Contrafund, the largest active Apple shareholder, has cut its stake in the company by 10 percent.

Fidelity


The $92 billion fund, run by portfolio manager Will Danoff, reduced his stake in Apple over the first two months of 2013, according to Reuters. Fidelity Contrafund went from 11.56 million shares of AAPL at the end of 2012 to 10.43 million shares at the end of February.

The selloff pushed Apple to No. 2, behind Google, on the mutual fund's list of largest holdings. Google now accounts for 5.8 percent of the fund's assets, while Apple takes up 5.2 percent.

The change reflects the fact that Google recently passed Apple as the top U.S.-based mutual and hedge fund holding. A study released last month found that Google was the most-owned stock by the 50 largest actively managed mutual funds in America.

Shares of AAPL were off more than 2 percent in Monday morning trading, and the company's stock fallen nearly 33 percent over the last six months, since the launch of the iPhone 5.

Analysts and market watchers have expressed concern that Apple's growth is slowing, particularly in the highly competitive smartphone market where Google's Android has become the global market share leader. Some have even predicted that Apple could miss its own guidance for its just-concluded March quarter.

The company's recent stock woes have prompted some investors to clamor for a higher dividend financed by the company's $137 billion-and-growing cash reserves. Market watchers are also eagerly awaiting Apple's next moves in multiple markets, including the potential for a cheaper iPhone model, and the prospect of new products like a smart wristwatch and a full-fledged television set.
post #2 of 95

Go~ private! *clap clap clap* Go~ private! *clap clap clap*

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #3 of 95

How often does one read dire news for a company, such as 'Some have even predicted that Apple could miss its own guidance for its just-concluded March quarter' followed by 'The company's recent stock woes have prompted some investors to clamor for a higher dividend financed by the company's $137 billion-and-growing cash reserves'. These statements seem diametrically opposed and speak strongly to the odd nature of Apple's dilemma I feel. Perhaps FC should have increased its stake.

 

Where are we on the curve? We'll know once it goes asymptotic!
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Where are we on the curve? We'll know once it goes asymptotic!
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post #4 of 95
I am all for Apple going private as well. LOL
post #5 of 95
Illuminati, their agenda is clear, they've got plenty of money to loose if they need and after all these games make them more money - clearly political.

Being a company of the Light, Apple has been having no rest being attacked by the somber ones.

I also feel Apple should start moving towards going private, however it cannot sell its soul like Michael Dell most probably is now doing.

Apple is attacked because of its integrity, it's not willing to pay up journalists etc for good press and everybody is now eyeing their growing 137B treasure chest - even the name indicates how coveted it is by the greedy ones. I say Apple grows it endlessly until it can buy itself back - however I'd see it with good eyes they'd change it into several different currencies and physical gold, wouldn't the worst happen to the USD currency...

Hang in there, this media frenzy is really just noise - AAPL will surely break the USD1000 soon, they know it and they're playing for highest profits possible. BUY!

(Attackers to this post define themselves)
post #6 of 95
Last time I checked, APPL made more money last quarter than any tech company in history. If anything, Google is in most trouble as Android continues to be forked and shutting them out of the revenue streams in customer data. Android is a break even proposition for them as desktop search has already peaked.
post #7 of 95

Apple Mini

Cubist
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Cubist
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post #8 of 95
i don't know where they get there market share #, all i can say is that i was at disney world this weekend and everyone i saw using a phone or tablet had a iphone or ipad. maybe people with androids just don't use them as much?
post #9 of 95
$250B in wealth wiped out in less than a year -- is this the largest in known history for any corporation (including perhaps the East India Companies)? -- and not a peep from management.

Wow.
post #10 of 95

I see that there is breaking news about Tim Cook stepping down because of his inability to perform in the capacity that the board expects. Should be on all media outlets within the hour.
 

na na na na na...
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na na na na na...
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post #11 of 95
Quote:
Originally Posted by anantksundaram View Post

$250B in wealth wiped out in less than a year -- is this the largest in known history for any corporation (including perhaps the East India Companies)? -- and not a peep from management.

Wow.

Not a peep from management? Really? Have you even listed to the conference calls after quarterly earnings reports?

Besides, what do you want Cook to say? "You people dumping stock are idiots"?

They really need to be encouraging private ownership rather than institutional. Split the stock for Pete's sake.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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post #12 of 95

Maybe Apple should apologize to them, and then they'll reinvest. 1oyvey.gif

post #13 of 95
Let's see how much more value Tim Cook & Co. can destroy by ignoring Wall Street and pissing off investors. Between that and Cook's supply chain "expertise" AAPL might crash below $400 this week. Tim Cook makes Jerry Yang, Steve Balmer, and John Chambers look like a pack of bloody geniuses!
post #14 of 95
Quote:
Originally Posted by jragosta View Post

Quote:
Originally Posted by anantksundaram View Post

$250B in wealth wiped out in less than a year -- is this the largest in known history for any corporation (including perhaps the East India Companies)? -- and not a peep from management.

Wow.

Not a peep from management? Really? Have you even listed to the conference calls after quarterly earnings reports?

Besides, what do you want Cook to say? "You people dumping stock are idiots"?

They really need to be encouraging private ownership rather than institutional. Split the stock for Pete's sake.

Hard action such as a massive repurchase (and perhaps less important, but nonetheless useful for sending a strong signal, a split) is exactly what I mean. And, occasionally showing up to counter real FUD that has a valuation impact. After all, he does show up for maps, China, CSR issues, etc.

And yes, I carefully listened to the post-quarterly earnings conference call, and all I heard was the usual boilerplate.
post #15 of 95
The title is misleading. The word "cuts" suggests the selling just occurred, but in fact it occurred January and February. It is now two months later.
post #16 of 95
Quote:
Originally Posted by MJ Web View Post

Let's see how much more value Tim Cook & Co. can destroy by ignoring Wall Street and pissing off investors. Between that and Cook's supply chain "expertise" AAPL might crash below $400 this week. Tim Cook makes Jerry Yang, Steve Balmer, and John Chambers look like a pack of bloody geniuses!

 

With due respect, I don't see it that way.  I hold enough AAPL that it's a significant part of my net worth, so like others, I've lost quite a bit of wealth in the past few months.  Nevertheless, I'd be seriously disappointed in Tim Cook if he were to bow down before Wall Street.  Part of what makes Apple Apple is that it navigates by its own north star and it (mostly) ignores Wall Street.  I hope this doesn't change.

 

That said, I also hope for and expect a larger dividend soon.  But I'm patient.  It was fifteen years ago that I bet heavily on Apple, and I remain bullish about the next fifteen years.

post #17 of 95
Quote:
Originally Posted by anantksundaram View Post

$250B in wealth wiped out in less than a year -- is this the largest in known history for any corporation (including perhaps the East India Companies)? -- and not a peep from management.

Wow.

 

And yet still the most valuable company in the world in terms of market capitalization, with a pile of cash equal to the GDP of some countries, margins any company any would kill for, raking in most of the profit of the tech universe, and a P/E that leaves any rational person scratching their heads Your argument simply does not apply here. Nothing about this situation has any basis in rational thought so no "peep" from management could possibly explain it either. The entire story of Apple is based on emotion, usually the emotion of hate.

post #18 of 95
Quote:
Originally Posted by MJ Web View Post

Let's see how much more value Tim Cook & Co. can destroy by ignoring Wall Street and pissing off investors. Between that and Cook's supply chain "expertise" AAPL might crash below $400 this week. Tim Cook makes Jerry Yang, Steve Balmer, and John Chambers look like a pack of bloody geniuses!

 

You have absolutely no basis on which to voice your opinion other than ignorance.

post #19 of 95
Quote:
Originally Posted by lkrupp View Post

 

You have absolutely no basis on which to voice your opinion other than ignorance.

Perhaps you'd like to try that shoe on the other foot. Investors and Wall Street are divorcing Apple. The basis of my observation is the stock had nosedived from $700 to $400 during the biggest bull market in this century. Use your eyes instead of shooting off your mouth, lkrupp!

post #20 of 95

Considering how secretive Apple is with its product roadmap I'm not sure it makes sense to go 6 months without announcing any product refreshes or new products.  It just puts that much more pressure on them when they do announce something.  I suppose they could have an event between now and WWDC but that seems unlikely.  So there will be huge expectations for what does get announced at WWDC.  My hope is that with all the leaks last year Apple really is clamping down on leaks and we'll get some surprises later this year.

post #21 of 95
Quote:
Originally Posted by MJ Web View Post

Let's see how much more value Tim Cook & Co. can destroy by ignoring Wall Street and pissing off investors. Between that and Cook's supply chain "expertise" AAPL might crash below $400 this week. Tim Cook makes Jerry Yang, Steve Balmer, and John Chambers look like a pack of bloody geniuses!

What rational basis is there for the dumping of stock?  Seems it me its based more on emotion than fundamentals.  I will say though going 6 months with no product refreshes or new product announcements doesn't help shift the narrative.  Especially considering Apple is very secretive about product plans.  This creates a vacuum which is being filled with plenty of FUD and D&G.

post #22 of 95
Quote:
Originally Posted by Rogifan View Post

Seems it me its based more on emotion than fundamentals. 

 

I don't disagree with that. There seems to be a lot of emotional people out there in that case though.

post #23 of 95
Quote:
Originally Posted by MJ Web View Post

Perhaps you'd like to try that shoe on the other foot. Investors and Wall Street are divorcing Apple. The basis of my observation is the stock had nosedived from $700 to $400 during the biggest bull market in this century. Use your eyes instead of shooting off your mouth, lkrupp!

Still waiting for a rational response to his question.

Apple just had a record quarter. Sales continue to grow. Market share continues to grow. Cash continues to grow. Yet their P/E has dropped to a cash-adjusted forward P/E below 7 while the average company on Wall Street is trading at more than twice that.

Please explain why an average company with average earnings (and, on average, no dividends) is worth more than twice AAPL. EVEN IF its performance drops to the level of the average company, it's still trading at least than half of what it should be.

So where's your detailed analysis of why it's overvalued and should drop another 10%?
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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post #24 of 95
Quote:
Originally Posted by MJ Web View Post

Let's see how much more value Tim Cook & Co. can destroy by ignoring Wall Street and pissing off investors. Between that and Cook's supply chain "expertise" AAPL might crash below $400 this week. Tim Cook makes Jerry Yang, Steve Balmer, and John Chambers look like a pack of bloody geniuses!

Thank God nobody at Apple is ever listening to clowns like you.

Stop thinking with your butt an use your brain for a while.

post #25 of 95
Quote:
Originally Posted by jragosta View Post

They really need to be encouraging private ownership rather than institutional. Split the stock for Pete's sake.

Fidelity sold 1.13 million shares in the period from January through February. That is just one institution for only a two month period. If we assume they received about $450 per share on average, that amounts to $508.5 million. What split do you envision which would entice enough individuals to replace
that size of institutional investment, let alone all the other institutional investments? Or never mind replacing it. How many investors at what price would
even make a dent? If you are going to continue promoting a split as helping AAPL's price, you should provide some numbers explaining why.
post #26 of 95
They lost me at "this change reflects the fact that..." with absolutely NO proof of such an assertion.
post #27 of 95
Quote:
Originally Posted by Apple ][ View Post

 

I don't disagree with that. There seems to be a lot of emotional people out there in that case though.

Not sure what Cook and team can do about that other than spacing out product launches throughout the year (so there are no vacuums being filled up with FUD and D&G)  and maybe better PR/marketing.  It makes my blood boil when I see a puff piece on the Verge (one of the least Apple hating tech sites out there) about Google's design revolution under Larry Page.  Or another puff piece on the back story behind Microsoft Surface.  It's all this free positive media that Apple gets none of because they choose to be so close lipped.  And the last piece of PR we got from Apple was quite bizarre - first Phil Schiller going after Android on the eve of the S4 launch.  And shortly after 'why iPhone' and 'why iPad' campaigns that were portrayed in the media as desperation more than anything else. 

 

I guess it's just frustrating....I don't have the answers on what Apple can do to change the narrative but it feels like they should be doing something.  Even if the stock sell off is completely irrational, it's still happening and it feeds into more pessimism about the company which causes more sell offs.

post #28 of 95
To everyone saying Tim Cook should pay more attention to Wall Street: Steve Jobs was famous for his contempt for Wall Street, and mostly ignored them. And yet he created a lot of shareholder value, and no small part of that was because he didn't follow the "expert" advice of short sighted Wall Street.
post #29 of 95
Quote:
Originally Posted by Rogifan View Post

What rational basis is there for the dumping of stock?  Seems it me its based more on emotion than fundamentals.  I will say though going 6 months with no product refreshes or new product announcements doesn't help shift the narrative.  Especially considering Apple is very secretive about product plans.  This creates a vacuum which is being filled with plenty of FUD and D&G.

A six month product drought after Cook & Cos. amateurish product dump of Apple's product line last Fall. Could Cook deliver any of those products reliably? No! He just wanted to beat Windows 8 and Samsung Galaxy to market so he introduced Apple vaporware -- products he couldn't deliver. 6 month later, now that Cook's supply chain has begun to catch up, nobody wants Apple's 6 month old vaporware. Tim Cook can't even count beans properly! 

post #30 of 95
Quote:
Originally Posted by seanr View Post

To everyone saying Tim Cook should pay more attention to Wall Street: Steve Jobs was famous for his contempt for Wall Street, and mostly ignored them. And yet he created a lot of shareholder value, and no small part of that was because he didn't follow the "expert" advice of short sighted Wall Street.

It's times like these I wish Apple could go private.  Screw Wall Street.

post #31 of 95
Originally Posted by MJ Web View Post
A six month product drought…

 

Steve Jobs never let Apple go six months without a product update¡


…amateurish product dump…

 

Steve Jobs never updated more than one product at once¡


…deliver any of those products reliably?


Apple under Steve Jobs never had any production issues for any reason at any time¡

 

Also, you're just outright lying at this point. 


…just wanted to beat Windows 8 and Samsung Galaxy to market…

 

This message brought to you by the Look What I Found Up My Butt Council, a subsidiary of AßPulls, Inc.

 

Just go away.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply
post #32 of 95
Quote:
Originally Posted by seanr View Post

To everyone saying Tim Cook should pay more attention to Wall Street: Steve Jobs was famous for his contempt for Wall Street, and mostly ignored them. And yet he created a lot of shareholder value, and no small part of that was because he didn't follow the "expert" advice of short sighted Wall Street.

Perfectly true! SJ showed the greedy WS guys again and again his middle finger. And he was proven right to to so.

 

If anything, TC does listen rather to much to WS. But for the he is doing extremely well as CEO.

 

And this MJ troll doesn't have a clue what he is talking about.

post #33 of 95

I knew Steve Jobs... Tim Cook is no Steve Jobs!

post #34 of 95
Quote:
Originally Posted by MJ Web View Post

I knew Steve Jobs... Tim Cook is no Steve Jobs!

please just go away

post #35 of 95
Originally Posted by MJ Web View Post
I knew Steve Jobs... Tim Cook is no Steve Jobs!

 

Two fine people are different? What're the odds. 

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply
post #36 of 95
Rolling out so many products/updates so late last year (and the limited availability too) really hurt Apple. And now there is no products being introduced this quarter. Spreading out some new product intros (and updates) would be nice!
post #37 of 95
Release Mac Pro now; 5s in June; iPad mini w/retina August; iWatch in October and their stock will reach $700 again. Split shares and it could reach $1,000.
post #38 of 95
Quote:
Originally Posted by poally dog View Post

Release Mac Pro now; 5s in June; iPad mini w/retina August; iWatch in October and their stock will reach $700 again. Split shares and it could reach $1,000.

Wall Street doesn't give a shit about MacPro.

post #39 of 95
Quote:
Originally Posted by lkrupp View Post

 The entire story of Apple is based on emotion, usually the emotion of hate.

The story was mostly about Fidelity dumping some AAPL stock. It is just a 10% equity holding adjustment, no big deal. Sure there was a bit of editorializing in the last couple of paragraphs of the article though it expresses some common sentiments echoed lately by many stock holders, but I don't think the recent AAPL sell off is due to hate. Institutional investors are in business to make money and are unlikely to take a position based on emotion especially if it is contrary to financial indications. Typically trash talk as a tactic to lower a stock price is done for short term profit but this decline is a steady downturn for the past six months, which to me exhibits more of a long term trend. Stock trends are usually based on forward expectations not past performance. I don't have a position in AAPL right now but the chart is a little scary.

Life is too short to drink bad coffee.

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Life is too short to drink bad coffee.

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post #40 of 95
Quote:
Originally Posted by mstone View Post

The story was mostly about Fidelity dumping some AAPL stock. It is just a 10% equity holding adjustment, no big deal. Sure there was a bit of editorializing in the last couple of paragraphs of the article though it expresses some common sentiments echoed lately by many stock holders, but I don't think the recent AAPL sell off is due to hate. Institutional investors are in business to make money and are unlikely to take a position based on emotion especially if it is contrary to financial indications. Typically trash talk as a tactic to lower a stock price is done for short term profit but this decline is a steady downturn for the past six months, which to me exhibits more of a long term trend. Stock trends are usually based on forward expectations not past performance. I don't have a position in AAPL right now but the chart is a little scary.

Here's a 6 month AAPL chart compared to Dow, Nasdaq and S&P.  Scary indeed.  If the board announces a bigger dividend or share buy back I think the question will be what took them so long.  If I was an employee, especially one who received stock as part of my compensation, not sure how my morale would be seeing the stock near its 52 week low.

 

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