Over the last couple of weeks a ‘silly sideshow’ has been playing out between Greenlight Capital and Apple Inc. Greenlight Capital’s CEO, David Einhorn, has been trying to force Apple to offer preferred stock plans by suing Apple in court, while Tim Cook and Apple disagree with his proposals.
Even though Einhorn has won at least one small victory over Apple in court, it’s been reported that Greenlight Capital just dropped their lawsuit against Apple.
Time to tie executive salaries to stock performance, right?
According to a newly-posted shareholder document, Apple now requires executive officers to own three times their annual salary. The CEO is still required to hold ten times his own annual salary in stock, as well.
This current move, as reported by the Wall Street Journal, comes a month after Apple’s board actually opposed a similar measure proposed by a shareholder.
Rumors are swirling that Apple, a company which has been having a rocky time on Wall Street lately despite reporting their most profitable quarter ever, might announce a decision to issue a stock split tomorrow at their next shareholder meeting, to be held tomorrow.
With AAPL stock in decline, investors are rioting to get a piece of Apple’s $137.1 billion cash horde. Greenlight Capital’s David Einhorn, of course, has been making waves with his lawsuit against Apple and his proposal that Apple issue an ‘iPref’ preferred dividend to investors; now, Morgan Stanley Katy Huberty has come out of a meeting with Apple CFO Peter Oppenheimer, apparently convinced that Apple will more than double its existing dividend to investors to 6%.
The sage between prominent Greenlight Capital investor David Einhorn and Apple continues.
If you’ve been up on your Apple news the past few months, then you’ve probably heard about a “silly sideshow” that been going on about Apple’s stock. Basically, Greenlight Capital isn’t happy with the amount of cash their getting back on their investment in Apple, while Apple has been hoarding all their cash.
Hoping to convince Apple to give shareholders some of their cash, Greenlight Capitals found, David Einhorn, has a concocted a plan that would have Apple selling “iPref” stock to investors who want to eat Apple’s cake.
The saga between David Einhorn of Greenlight Capital and Apple continues.
Greenlight Capital’s David Einhorn is a very influential Wall Street investor who is going after Apple for proposing to allegedly eliminate preferred stock options from AAPL shareholders. Apple recently started issuing small dividends to investors, and preferred stock would entitle investors to fixed dividends instead of the fluctuating common-stock dividends.
Einhorn and Greenlight Capital will hold a conference call today with interested Apple investors to discuss their ideas on how Apple should use its massive cash pile.
Apple stock opened at $457.70 this morning, down more than 10%, following its financial results on Wednesday. The Cupertino company announced $13.1 billion profit for the first quarter of 2013, a slight increase over the $13.06 billion it posted for the first quarter of 2012. But despite that increase, it’s clear Apple’s phenomenal growth has hit a stumbling block.
Earlier this week, The Wall Street Journal reported that Apple has cut its iPhone 5 component orders by as much as half following “weaker-than-expected” demand for device. The news sent Apple’s stock price plummeting, but according to some analysts, there’s nothing to worry about. iPhone 5 demand is doing just fine, according to Sterne Agee’s Shaw Wu, and the component cuts are in no way related to poor demand.