Carl Icahn says Apple should buy more of its 'dramatically undervalued' stock, reveals valuation of

1356

Comments

  • Reply 41 of 107
    stompystompy Posts: 360member
    Quote:

    Originally Posted by TomMikele View Post

     



    The guy is about making money and exploiting differentials between market prices and underlying values. He has quite a record of success in doing so. Like the Godfather said, "He always makes money for his partners."




    Very succinct. I might add that although typical mom and pop Apple investors might be "up" right now, they are not "his partners."

  • Reply 42 of 107
    sog35 wrote: »
    Wrong.  The bankruptcy judge can void any agreement by Apple if they see fit.  There is no contigency that can account for Chapter 11 completely.

    If Apple has a legal agreement in good standing that enables their claims to take precedence over those of any other investors, then Apple will be first in line to take property or other items of value, especially since they poured nearly half a billion into the plant and equipment.
  • Reply 43 of 107

  • Reply 44 of 107
    Originally Posted by sog35 View Post

    Ichan is $5,000,000,000 LONG in apple shares.


     

    Yeah, I can’t possibly imagine a situation in which someone would want to temporarily lower the price of a stock so that he could buy more¡

  • Reply 45 of 107

    I have no doubt AAPL is worth more than its current value.  Potentially much more.

     

    I also have no doubt that if AAPL ever hit Icahn's magical $203 valuation, he'd immediately sell, short the stock, tell the world AAPL is highly overvalued, profit on the drop, then buy a bunch more at the lower valuation.

     

    I hate this Wall Street crap.

  • Reply 46 of 107
    damonfdamonf Posts: 223member
    Quote:

    Originally Posted by kaiser_soze View Post



    There were lots of people who criticized Carl back when he started his Apple activist investor endeavor. Most people who did that were not Apple investors themselves, but there were plenty of Apple investors who were critical of Carl. It does not seem likely to me that the stock would be anywhere near as high as it is today, were it not for Carl. The P/E ratio for Apple stock has long been very much lower than for most other companies doing similar business. Carl came along and said that the reasoning that investors were using, to value Apple stock so low, was not good reasoning, and that it ought to be much high. He was right. Stock prices are strongly influenced by irrational reasoning, and by people who ignore the intrinsic value of a stock in favor of "technical analysis", where they believe that the patterns that they see in the history of the stock's price foretell its future. When they get it right, it is mainly because of the effect known as the self-fulfilling prophesy. Carl has not always been the best friend of the smaller investor, but in the case of Apple, which he could never attempt to take over owing to the size, he has been the small stock owners best friend. In fact, from the small investors' perspectve, Carl is the best friend that Apple stock ever had. I have strong appreciation for him, and I hope he keeps it up. Apple stock is still greatly underpriced, especially in consideration of what the numbers are probably going to be like over the next several quarters, and Apple still is sitting on a horrific pile of cash that they don't know what to do with. The repatriation business remains a factor, but it should not prevent Apple from buying more of its own shares and returning capital to shareholders.



    Apple's stock was going up on Apple's own buybacks, not based on what Icahn was saying.  Would you mortgage your house or sell all of your other investments right now to buy more Apple stock?  Because that's exactly what Icahn is wanting Apple to do: they'd either have to  take out another loan to buy back more stock (your mortgage equivalent), or repatriate existing cash from overseas, at a tax rate of 25% percent (equivalent to selling all of your stock gainers and paying capital gains tax, but worse). 

     

    What Icahn wants is to run up the stock so he can SELL it.  Do you seriously believe he's going to hold onto it when it hits his target price?  No, he wants to sell it at $198 to some schmucks who think that because *he* says it's worth $203, they'll buy it at his "mighty-hard-to-let-go-of-it-below-my-target" price of $198.  Carl has no interest in any other shareholders than himself.  He wants to artificially balloon the price beyond what it should reasonably be.  And we know how well that turned out for the real estate market in the mid 2000s when housing prices were unrealistically high.  I don't want Apple to become a "popped balloon" stock.  That will kill its position as a desirable stock forever.  The market should dictate Apple's price, not Icahn's greed. 

  • Reply 47 of 107
    sog35 wrote: »
    Apple's stock is up about 3.5% since Ichan talked about this letter to Tim Cook yesterday.......

    just roll with it.

    You guys who hate on Ichan are ridiculous. 

    Who is "Ichan"?
  • Reply 48 of 107
    tmaytmay Posts: 5,163member
    Quote:
    Originally Posted by sog35 View Post

     

     

    Wrong.  The bankruptcy judge can void any agreement by Apple if they see fit.  There is no contigency that can account for Chapter 11 completely.


     

    Quote:

    Originally Posted by sog35 View Post

     

     

    Nope.  Not if the judge things the Apple arrangement was unfair.

     

    Also remember GTAT sold hundreds of millions in Bonds before the Apple deal.

     

    NOTHING is guaranteed in Bankruptcy.  NOTHING.

     

    That's why you don't make deals with companies close to Bankruptcy.  Tim Cook should have know this


    You need to get over blaming Tim on the assumption that Apple did no due diligence. In fact just a little while ago on a newer thread, you were speaking of fraud by GTAT.

     

    Which is it?

  • Reply 49 of 107
    tmaytmay Posts: 5,163member
    Quote:
    Originally Posted by sog35 View Post

     

    Apple's stock is up about 3.5% since Ichan talked about this letter to Tim Cook yesterday.......

     

    just roll with it.

     

    You guys who hate on Ichan are ridiculous. 


    Correlation is not causation, but maybe if Icahn talks it up day after day, he could reach that $200 valuation without Apple intervention.

     

    Think of it as a telethon.

  • Reply 50 of 107
    tmay wrote: »
    Correlation is not causation, but maybe if Icahn talks it up day after, he could reach that $200 valuation without Apple intervention.

    Think of it as a telethon.

    Since Carl "knows" AAPL is worth more than $200 why doesn't HE buy billions more of their stock? Clearly he's not willing to bet more of his own money on this, therefore he's just pumping. Always beware free financial advice. It's worth exactly what it costs.
  • Reply 51 of 107
    ifij775ifij775 Posts: 470member

    Icahn should be sending letters to Obama and the Congress about a tax cut on repatriating overseas profit. That would actually speed this along.

  • Reply 52 of 107
    ifij775 wrote: »
    Icahn should be sending letters to Obama and the Congress about a tax cut on repatriating overseas profit. That would actually speed this along.

    The administration is waiting to see what their pals at Goldman Sachs wants.
  • Reply 53 of 107
    ktappektappe Posts: 808member
    Quote:

    Originally Posted by sog35 View Post

     

    Ichan said Apple should increase the buyback last year when the shares were $60-$70.  He was right.  The shares are now $100+

     


     

    They were buying back when the shares were $60. They're also buying back now. It's called dollar-cost-averaging. Look it up.

  • Reply 54 of 107
    matrix07matrix07 Posts: 1,993member
    Quote:

    Originally Posted by sog35 View Post

     

    Apple's stock is up about 3.5% since Ichan talked about this letter to Tim Cook yesterday.......

     

    just roll with it.

     

    You guys who hate on Ichan are ridiculous. 




    No. it's up because Apple announced another event.

  • Reply 55 of 107
    normmnormm Posts: 636member

    Icahn's letter seems like helpful PR to me.  Just trying to herd the speculators a bit.

  • Reply 56 of 107

    Can people please ignore this insufferable [you-know-who-I'm-talking about].

     

    Please, people, please?

  • Reply 57 of 107
    Interesting, since Icahn is getting ready to sell, it's probably in Apples best interests to wait about a year.
  • Reply 58 of 107

    Oh sweet naive ...

    If Icahn can bring Apple down, he can easily earn 30-40 billions or even more. What's more important, he will do something that no one would think is possible. He will be legend - the man who took Apple down to dirt. 

    Everything he's done so far goes point by point by textbook "What is hostile takeover and how to perform it". Only time he's done something wrong was trying to oust Cook before right time. He understood his mistake and right now it's going as planned. I just hope that Lenovo outbids Samsung with iPhone. iPhone Galaxy would be horrible.

  • Reply 59 of 107
    sog35 wrote: »
    Three shares? LOL.

    I'm holding 550 shares right now.  If you are not an Apple investor than you don't understand the good Ichan is doing.

    Wow, 550!

    /s
  • Reply 60 of 107
    malaxmalax Posts: 1,598member
    Quote:

    Originally Posted by anantksundaram View Post

     

    Can people please ignore this insufferable [you-know-who-I'm-talking about].

     

    Please, people, please?


    Ok.  However I reserve the right to "I told you so" (not you, of course) when we eventually learn what actually happened though.  Fair enough?

Sign In or Register to comment.