Self correction - It was Johnny Ola speaking to Michael Corleone about Hyman Roth about why he was still around and had never been whacked. In my original post, I meant to say, "as said in the Godfather ... "
I'm not hating on Icahn. Quite the contrary. He might be a huge buttwipe and his tactics, at times, may amount to extortion, but you can not argue with his record of success or the fact he pulls no punches with respect to who he is and what his objectives are. He plays hard, just about never lets up and almost always comes out on top.
I just don't understand why some Apple investors hate on Ichan. The man is supporting Apple unlike the thousands in the media who are constantly BASHING and HATING on Apple (bendgate anyone?)
He's not supporting Apple, their stock price doesn't impact their earnings. He's boosting the stock price to profit. He's 78 and in it to get out before he croaks:
It took what 14 months to ditch Netflix and he's been with Apple since about a year ago. He's probably getting a bit anxious for Apple to drain their cash so he can bail. Question is, who can he sell all his stock to? Who would buy so much at such a high value? He said he's not in it to eventually sell it back to Apple but that might end up being the case.
I don't get the value of a stock buy-back. Apple's cash would essentially be vaporized when the shares are retired.
Most of the valuation of Apple is based on future earnings not cash (current value is over $600b with just over $100-150b in cash), it actually seems like investors ignore the cash balance. So under the assumption that the market cap remains the same then trading cash for erasing stock should push remaining stock higher. If they factored cash in, it shouldn't change. If Apple kept the stock then there would be more incentive for Apple as they could use it in deals like with Beats but taking it off the table is purely a move to benefit shareholders (not that there's anything wrong with that).
He's not supporting Apple, their stock price doesn't impact their earnings. He's boosting the stock price to profit. He's 78 and in it to get out before he croaks:
It took what 14 months to ditch Netflix and he's been with Apple since about a year ago. He's probably getting a bit anxious for Apple to drain their cash so he can bail. Question is, who can he sell all his stock to? Who would buy so much at such a high value? He said he's not in it to eventually sell it back to Apple but that might end up being the case.
Most of the valuation of Apple is based on future earnings not cash (current value is over $600b with just over $100-150b in cash), it actually seems like investors ignore the cash balance. So under the assumption that the market cap remains the same then trading cash for erasing stock should push remaining stock higher. If they factored cash in, it shouldn't change. If Apple kept the stock then there would be more incentive for Apple as they could use it in deals like with Beats but taking it off the table is purely a move to benefit shareholders (not that there's anything wrong with that).
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.
And if I could eat the whole company I would be the biggest buffalo in all Estonia. What is common to both theses statements is neither one makes a lick of sense. I can see him closing in on the 308.55B he would need wrest control of the company, at 5B he's almost there! /s
It doesn't make sense because he does not need put his own 308.55B in. What he needs is support from other shareholders (what he is already gaining) and sum of supporters shares value doesn't have to be 308,55B. This number is just number based on todays value and don't forget, Apple has shares as well and those shares are already considered as shareholders property. Is it really too hard to look up, how those things are done?
Comments
Self correction - It was Johnny Ola speaking to Michael Corleone about Hyman Roth about why he was still around and had never been whacked. In my original post, I meant to say, "as said in the Godfather ... "
I'm not hating on Icahn. Quite the contrary. He might be a huge buttwipe and his tactics, at times, may amount to extortion, but you can not argue with his record of success or the fact he pulls no punches with respect to who he is and what his objectives are. He plays hard, just about never lets up and almost always comes out on top.
He's not supporting Apple, their stock price doesn't impact their earnings. He's boosting the stock price to profit. He's 78 and in it to get out before he croaks:
http://www.cnbc.com/id/101137397
It took what 14 months to ditch Netflix and he's been with Apple since about a year ago. He's probably getting a bit anxious for Apple to drain their cash so he can bail. Question is, who can he sell all his stock to? Who would buy so much at such a high value? He said he's not in it to eventually sell it back to Apple but that might end up being the case.
Most of the valuation of Apple is based on future earnings not cash (current value is over $600b with just over $100-150b in cash), it actually seems like investors ignore the cash balance. So under the assumption that the market cap remains the same then trading cash for erasing stock should push remaining stock higher. If they factored cash in, it shouldn't change. If Apple kept the stock then there would be more incentive for Apple as they could use it in deals like with Beats but taking it off the table is purely a move to benefit shareholders (not that there's anything wrong with that).
When AAPL hits $110 he'll probably bail.
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.
And if I could eat the whole company I would be the biggest buffalo in all Estonia. What is common to both theses statements is neither one makes a lick of sense. I can see him closing in on the 308.55B he would need wrest control of the company, at 5B he's almost there! /s
It doesn't make sense because he does not need put his own 308.55B in. What he needs is support from other shareholders (what he is already gaining) and sum of supporters shares value doesn't have to be 308,55B. This number is just number based on todays value and don't forget, Apple has shares as well and those shares are already considered as shareholders property. Is it really too hard to look up, how those things are done?