• Carl Icahn Invests another $500 Million in Apple after Stock Value Tumbles



    With the share price of Apple dropping more than $40 recently following a disappointing earnings report, billionaire Carl Icahn announced that he has bought another $500 million stake in the company. Icahn took to his official Twitter account to announce his purchase and unsurprisingly he also pushed his desire for Apple to increase its share buyback program. He wrote the following regarding the matter:

    My buying seems to be going neck-and-neck with Apple's buyback program, but hope they win that race.
    The announcement comes less than a week after Icahn announced that he had placed another $500 million bet on Apple shares. This means that Icahn has put over $1 billion into Apple in the last week. Though Icahn has been critical of Apple’s board of directors for their growing cash hoard, he believes the company itself has a bright future ahead of it. On a number of occasions, Icahn has stated his investment in AAPL is a “no brainer.”

    Icahn, the activist investor who has a reputation for using his considerable sway with publicly traded companies, believes Apple should spend the entirety of its $158.8 billion in cash on its own shares. However, he has made a more moderate proposal to shareholders, asking by proxy vote that Apple invest $50 billion immediately. Apple has advised that shareholders vote against the proposal at its upcoming annual investor meeting, saying that its board is already “thoughtfully considering options for returning additional cash to shareholders.”

    For those of you who didn’t know, shares of Apple recently tumbled after the company reported its December quarter earnings on Monday. Though it was a record quarter for the company, investors had anticipated more growth and were particularly bothered by lower-than-expected iPhone sales of 51 million units.

    Source: Carl Icahn (Twitter) via AppleInsider
    This article was originally published in forum thread: Carl Icahn Invests another $500 Million in Apple after Stock Value Tumbles started by Akshay Masand View original post
    Comments 11 Comments
    1. crouching's Avatar
      crouching -
      So tired if this guy! Wish he would just leave already!!
    1. okitsugu's Avatar
      okitsugu -
      Quote Originally Posted by crouching View Post
      So tired if this guy! Wish he would just leave already!!
      Personally I like what he wants to be done. Apple stock keeps going down despite having one of the highest if not the highest net profits of any company in the world. The more they buyback the less pressure they will have from the share holders. Ofcourse mean while this guy will ride the rise of value of the stock and be even more rich. Apple may eventually be able to have full control of its timelines for any of it's product and "new" categories.

      I'm tired. Maybe this response made no sense
    1. Faresismail's Avatar
      Faresismail -
      Can someone please explain how will apple benefit by buying its shares back ( I'm not being sarcastic )
    1. tridley68's Avatar
      tridley68 -
      If you got that kind of money in this economy you might as well put it to good use
    1. exNavy's Avatar
      exNavy -
      Would be nice to give that 500 million to people who really need it: the unemployed, the hungry on the streets, et cetera instead of some already well-off corporate monstrosity.
    1. bigboyz's Avatar
      bigboyz -
      I am not this guys biggest fan. At the same time he is a capitalist and is riding the wave. Unfortunately capitalist do not go into business to feed the poor. In a perfect world that would be ideal..maybe someday.
    1. romeo_herman's Avatar
      romeo_herman -
      If me, I' m not buying AAPL but I will buy NOK....
    1. fleurya's Avatar
      fleurya -
      Either the biggest fanboy ever, or he knows something the rest of the world doesn't, as billionaire investors often do.

      Quote Originally Posted by Faresismail View Post
      Can someone please explain how will apple benefit by buying its shares back ( I'm not being sarcastic )
      It's a signal to the market that you have a lot of faith in your company, and that you believe your market price is undervalued. It lowers dividend cash expenditures because the less stock out there the less dividends to pay. It makes your earnings per share go up, but only if the stock is fully retired (search EPS vs diluted EPS).

      Just a few general quick ones off the top of my head, the individual businesses may have other reasons.
    1. mmaboi21's Avatar
      mmaboi21 -
      Quote Originally Posted by fleurya View Post
      Either the biggest fanboy ever, or he knows something the rest of the world doesn't, as billionaire investors often do.



      It's a signal to the market that you have a lot of faith in your company, and that you believe your market price is undervalued. It lowers dividend cash expenditures because the less stock out there the less dividends to pay. It makes your earnings per share go up, but only if the stock is fully retired (search EPS vs diluted EPS).

      Just a few general quick ones off the top of my head, the individual businesses may have other reasons.
      Great info, only thing I disagree with is the fanboy comment.
    1. quidam_brujah's Avatar
      quidam_brujah -
      Quote Originally Posted by exNavy View Post
      Would be nice to give that 500 million to people who really need it: the unemployed, the hungry on the streets, et cetera instead of some already well-off corporate monstrosity.
      While I appreciate the sentiment, your suggestion hardly benefits Apple. The US hasn't gone Commie quite yet.
    1. ThatOneProfile's Avatar
      ThatOneProfile -
      Quote Originally Posted by exNavy View Post
      Would be nice to give that 500 million to people who really need it: the unemployed, the hungry on the streets, et cetera instead of some already well-off corporate monstrosity.
      Do you give your money to the unemployed?
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