It’s likely that Tim Cook doesn’t exactly look forward to hearing from Carl Icahn, but it’s difficult to argue that the activist investor isn’t a massive cheerleader for Apple.
As promised, Icahn published his open letter to Tim Cook today and the big surprise (spoiler alert!) is that he feels his 45 million shares of AAPL stock are grossly undervalued.
In a message entitled “Sale: Apple Shares at Half Price,” Icahn explains why he believes Apple stock is currently trading at half its true value, instead claiming it should be priced at $203 per share — based on growth forecast for the next two years, alongside the company’s massive cash reserves.
Bullish activist-investor Carl Icahn is back again! In a tweet sent earlier today, Icahn noted that he plans to send Tim Cook an open letter tomorrow. The contents of this letter are unknown, but Icahn promises it will be “interesting,” to say the least.
AAPL shares have finally completed the long climb back to 2012 levels today, closing at an all-time high of $100.53 per share.
The stock’s 1.4 percent rise today was aided by bullish reports from both RBC and Morgan Stanley claiming Apple’s Fall lineup is going to be more extraordinary than ever this year as Apple puts the final preparations on the iPhone 6.
Bullish billionaire activist-investor Carl Icahn recently ramped up his stake in Apple to the tune of 2.8 million shares — bringing his total stake in the company to a little over $4.4 billion.
Icahn’s position was revealed in a Securities and Exchange Commission filing on Thursday, showing how Icahn now owns more than 7.5 million AAPL shares. The buy took place during the March period, which preceded Apple’s announcement of the 7-to-1 stock split and share repurchase program.
Wall Street is lining up to stuff its pockets with cash from Apple’s money printing empire, but rather than dipping into its massive offshore cash pile to pay for its expanded buyback program, Apple is once again planning to raise an enormous amount of debt to pay off investors.
Carl Icahn has backed off campaigning Apple to increase its stock buyback — citing the company’s recent repurchases, along with influential proxy adviser ISS’s call against his proposal.
In a letter directed to Apple shareholders, Icahn noted that he was ditching his non-binding proposal to get Apple to add a further $50 billion to its buyback plan — down from the original $150 billion he was initially requesting.
Proxy advisory firm Institutional Shareholder Services (ISS) has recommended that shareholders vote against Carl Icahn’s share buyback proposal for Apple.
According to the ISS report, “[The Apple board] has returned the bulk of its U.S.-generated cash to shareholders via aggressive stock buybacks and dividends payouts. In light of these good-faith efforts and its past stewardship, the board’s latitude should not be constricted by a shareholder resolution that would micromanage the company’s capital allocation process.”
Carl Icahn’s relationship with Apple has been rocky ever since he became the company’s most loquacious investor last Fall. While ribbing Tim Cook publicly with one hand for not doing a bigger buyback, the other has been busy forking over fat stacks of cash for more and more AAPL shares.
This morning Carl went classic Icahn and took to Twitter again to complain about Cook and the Apple board not giving him and other investors more money with his proposed $50 billion buyback, while also announcing he’s been gobbling up AAPL shares faster than Jaws went after those guys on the boat: