Go Back   MacRumors Forums > News and Article Discussion > MacRumors.com News Discussion

Reply
 
Thread Tools Search this Thread Display Modes
Old Aug 13, 2013, 03:15 PM   #1
MacRumors
macrumors bot
 
Join Date: Apr 2001
Carl Icahn Discloses 'Large Position' in Apple, Believes Company is 'Extremely Undervalued'




Legendary investor Carl Icahn disclosed on Twitter today that his holding company has taken a 'large position' in Apple, believing that the company is 'extremely undervalued' and should increase its share buyback program.

This is similar to the advice that Warren Buffett gave earlier this year, though Buffett did not take a position in Apple.

Icahn disclosed his position on Twitter after yesterday warning investors that he may disclose material information on that account in accordance with new SEC guidelines on social media use.
Quote:
We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come. - 12:21 PM - 13 Aug 13

Had a nice conversation with Tim Cook today. Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly. - 12:25 PM - 13 Aug 13
Icahn, who has an estimated net worth of $20 billion, has recently been extensively involved in efforts to keep Dell from going private and he also holds a 16% stake in Nuance, the speech recognition company that Apple uses for Siri.

Update: According to Bloomberg, Icahn has taken a position of at least $1 billion in Apple and is projecting the stock price to rise to over $600.

Update 2: Apple issued this statement regarding Icahn's investment:
Quote:
We appreciate the interest and investment of all our shareholders. Tim had a very positive conversation with Mr. Icahn today.
Update 3: The Wall Street Journal has more from an interview with Mr. Icahn.
Quote:
"This is a no brainer to go buy stock in a company that can go borrow" at a low rate, Mr. Icahn said. "Buy the company here and even without earnings growth, we think it ought to be worth $625."

Mr. Icahn's thesis rests on Apple borrowing at about a 3% interest rate and buying back shares right now, likely at around $525 a piece. That would send shares to $625, Mr. Icahn says, without taking into account any earnings growth.
Article Link: Carl Icahn Discloses 'Large Position' in Apple, Believes Company is 'Extremely Undervalued'
MacRumors is offline   3 Reply With Quote
Old Aug 13, 2013, 03:18 PM   #2
nicmr
macrumors newbie
 
Join Date: Dec 2012
aapl

... and AAPL is up 4.5%
nicmr is offline   11 Reply With Quote
Old Aug 13, 2013, 03:18 PM   #3
mrtune
macrumors 6502a
 
Join Date: Jun 2007
I guess that must explain why AAPL is up over 4.5% today.
mrtune is offline   15 Reply With Quote
Old Aug 13, 2013, 03:18 PM   #4
rjtyork
macrumors member
 
Join Date: Jun 2009
Hmmmm does he know something we don't? There may be a huge surprise waiting for us on the 10th...
rjtyork is offline   3 Reply With Quote
Old Aug 13, 2013, 03:18 PM   #5
bradl
macrumors 68030
 
Join Date: Jun 2008
Quote:
Originally Posted by nicmr View Post
... and AAPL is up 4.5%
And with that, Icahn just made everything that Ellison said yesterday a crock.

BL.
bradl is offline   20 Reply With Quote
Old Aug 13, 2013, 03:20 PM   #6
Klae17
macrumors 6502a
 
Join Date: Jul 2011
Looks like I just made 4.5% ! Oh wait I'm still upside down.
Klae17 is offline   7 Reply With Quote
Old Aug 13, 2013, 03:20 PM   #7
Some guy
macrumors member
 
Join Date: Apr 2013
Apple is doomed.
Some guy is offline   13 Reply With Quote
Old Aug 13, 2013, 03:20 PM   #8
xNYMetsx
macrumors 6502
 
Join Date: Jul 2013
Quote:
Originally Posted by rjtyork View Post
Hmmmm does he know something we don't? There may be a huge surprise waiting for us on the 10th...
Must be, because at this current state things are a little messy within Apple.
xNYMetsx is offline   1 Reply With Quote
Old Aug 13, 2013, 03:21 PM   #9
Will do good
macrumors 6502
 
Join Date: Mar 2010
Location: Earth
What does Carl Icahn and Buffett know. According to Apple haters, Apple is doom.
Will do good is offline   7 Reply With Quote
Old Aug 13, 2013, 03:22 PM   #10
the8thark
macrumors 68040
 
the8thark's Avatar
 
Join Date: Apr 2011
Stock price and market manipulation at it's finest?
__________________
Congress shall make no law . . . prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press.
the8thark is offline   54 Reply With Quote
Old Aug 13, 2013, 03:23 PM   #11
Supa_Fly
macrumors 68030
 
Supa_Fly's Avatar
 
Join Date: May 2002
Location: Toronto, Ontario, Canada
Send a message via MSN to Supa_Fly
Quote:
Originally Posted by rjtyork View Post
Hmmmm does he know something we don't? There may be a huge surprise waiting for us on the 10th...
Yeah it's called PUMP and DUMP!

Much like what pimps force street walker callgirls to do back in the early 70's.
__________________
2008 Al_MB 2.4Ghz C2D 4GB/256GB HDD/256MB Nvidia 9400M| Panther Dog Tags | Z10 | 2010 Mac Switcher
Supa_Fly is offline   8 Reply With Quote
Old Aug 13, 2013, 03:25 PM   #12
ValSalva
macrumors 68040
 
ValSalva's Avatar
 
Join Date: Jun 2009
Location: Burpelson AFB
Why does Icahn want to prevent Dell from going private? To make money off of them? If Dell has any chance it's probably going private again, at least for a while.

Apple should go private again too. Then it wouldn't have to be subject to Wall Street analyst nonsense about innovation, market share, etc. Apple could just do what they do best and keep making its billions. I know, never going to happen.
ValSalva is offline   7 Reply With Quote
Old Aug 13, 2013, 03:25 PM   #13
CausticPuppy
macrumors 65816
 
Join Date: May 2012
Holy cow, the stock price jumped at around 2:30pm EDT today which is right when he made that announcement.
__________________
2011 Mac Mini Server, 16 GB RAM, 256GB Crucial M4 SSD, 500GB HDD + 3TB NAS
Haswell rMBP 13" - i7/512GB
Mac Mini 1.83GHz Core2Duo, 3GB RAM, 60GB SSD
iPad Air/iPhone5S
CausticPuppy is offline   2 Reply With Quote
Old Aug 13, 2013, 03:28 PM   #14
bbeagle
macrumors 68000
 
bbeagle's Avatar
 
Join Date: Oct 2010
Location: Buffalo, NY
Quote:
Originally Posted by CausticPuppy View Post
Holy cow, the stock price jumped at around 2:30pm EDT today which is right when he made that announcement.
Which shows that it's not all Tim Cook or Apple that makes shares rise or fall. The stock market is a funny thing.
bbeagle is offline   8 Reply With Quote
Old Aug 13, 2013, 03:30 PM   #15
smithrh
macrumors 68020
 
smithrh's Avatar
 
Join Date: Feb 2009
Having someone influential say Apple is undervalued: great.

Having Icahn be that someone: not so good.

This could be very very very problematic.
smithrh is offline   11 Reply With Quote
Old Aug 13, 2013, 03:32 PM   #16
Clubber
macrumors member
 
Join Date: May 2009
Quote:
Originally Posted by the8thark View Post
Stock price and market manipulation at it's finest?
I'm smelling that to. Goes along with the quote, "The best way to predict the future is to make it."
__________________
Easy ABC 123 | Sleep Sounds | Sleep Songs | Match Up
Clubber is offline   11 Reply With Quote
Old Aug 13, 2013, 03:33 PM   #17
Rogifan
macrumors G3
 
Rogifan's Avatar
 
Join Date: Nov 2011
Quote:
Originally Posted by ValSalva View Post
Why does Icahn want to prevent Dell from going private? To make money off of them? If Dell has any chance it's probably going private again, at least for a while.

Apple should go private again too. Then it wouldn't have to be subject to Wall Street analyst nonsense about innovation, market share, etc. Apple could just do what they do best and keep making its billions. I know, never going to happen.
Explain exactly how Apple could go private?
__________________
"When we se something huge and powerful we aspire to make it small and meaningful." Jony Ive 
Rogifan is online now   3 Reply With Quote
Old Aug 13, 2013, 03:33 PM   #18
skinned66
macrumors 6502
 
Join Date: Feb 2011
Location: Ottawa, Canada
If I ever had a company I'd risk staying small and maintaining full control than having my coat tails ridden while getting whipped with a riding crop by people like this guy.

Last edited by skinned66; Aug 13, 2013 at 03:47 PM.
skinned66 is offline   3 Reply With Quote
Old Aug 13, 2013, 03:33 PM   #19
HiRez
macrumors 601
 
HiRez's Avatar
 
Join Date: Jan 2004
Location: Western US
Quote:
Originally Posted by the8thark View Post
Stock price and market manipulation at it's finest?
I'm not sad the price is shooting up, but yeah, always suspicious of this. Let's see if Icahn cashes out the second it reaches its peak and then tweets about how overvalued Apple is as he shorts the stock.
__________________
Go outside, the graphics are amazing!
HiRez is offline   10 Reply With Quote
Old Aug 13, 2013, 03:35 PM   #20
macchiato2009
macrumors 65816
 
Join Date: Aug 2009
these guys are desperate because they didn't get a good ROI as expected

they all believed that the stock would make $1,000
macchiato2009 is offline   1 Reply With Quote
Old Aug 13, 2013, 03:36 PM   #21
SeattleMoose
macrumors 65816
 
Join Date: Jul 2009
Location: Der Wald
But what happened to the "24/7 shelling" of Apple over the last year?

You know, all those "analysts"......those fountains of wisdom..."Apple is doomed, DOOMED I tell you!!!".....

Hey Carl....would you like a burger and fries with that stock purchase?
SeattleMoose is offline   0 Reply With Quote
Old Aug 13, 2013, 03:37 PM   #22
shanmugam
macrumors 68020
 
Join Date: Sep 2008
Location: Blazer town!
Carl Icahn -- does not look good for AAPL.

Heard lots of non sense with mentor graphics in OR and now DELL ...

not sure if he is good investor or not.
__________________
iPhone 5| iPad 4 | iPad mini | Nexus 7 | Kindle
Nov2012| Mac Mini| Core i7 2.3GHz QC | 330 240GB USB 3 | Viewsonic 21.5" 1920x1080
Sep2012|Toshiba 14" | i5 2.5Ghz 1366x768 |Win 7 | x-25M 120GB
shanmugam is offline   1 Reply With Quote
Old Aug 13, 2013, 03:38 PM   #23
jovada
macrumors member
 
Join Date: Jan 2006
So you buy a load of shares, talk to the CEO to start a new buyback, and you create your own profit. Nice...
__________________
[jorisvandael.be]
+ jorisvandael.be/weblog (Dutch only)
+ eurobilltracker.eu

jovada is offline   7 Reply With Quote
Old Aug 13, 2013, 03:39 PM   #24
Rogifan
macrumors G3
 
Rogifan's Avatar
 
Join Date: Nov 2011
Quote:
Originally Posted by HiRez View Post
I'm not sad the price is shooting up, but yeah, always suspicious of this. Let's see if Icahn cashes out the second it reaches its peak and then tweets about how overvalued Apple is as he shorts the stock.
Well he's taken positions in companies like Netflix. Not sure if he's still in it or has cashed out.
__________________
"When we se something huge and powerful we aspire to make it small and meaningful." Jony Ive 
Rogifan is online now   1 Reply With Quote
Old Aug 13, 2013, 03:39 PM   #25
sw1tcher
macrumors 6502a
 
sw1tcher's Avatar
 
Join Date: Jan 2004
Location: Los Angeles
Is this the same Icahn that wanted new Apple management? Is this the same Icahn that wanted Apple to sell bargain-priced hardware at discount chain stores which would have diluted Apple's image?

Not sure how great this news is.

Quote:
Carl Icahn gunning for Apple

April 01, 2009

The high-profile investor believes Apple is due for a management shakeup -- and a drastic change in focus

Billionaire investor Carl Icahn intimated on Tuesday that after losing his bid to take over Yahoo last year, he has set his sights on Apple. Should Icahn succeed in his takeover effort, he has a radical strategy planned for Apple: To reposition the company's products as bargain computers.

Icahn has a history of pressuring companies to change their ways, and because he holds -- or has the resources to buy -- massive amounts of stock, he is often able to ensure that his voice is heard. When Yahoo rebuffed Microsoft's buyout propositions, Icahn famously stepped in, demanding that Yahoo acquiesce to Microsoft's offer and threatening a proxy fight for control of the company if he did not get his way.

Now, Icahn has designs on pushing Apple in a new direction. He claims to see a "leadership vacuum" at the company and plenty of opportunity to expand the company's user base. "Apple has aggressively pursued a niche market," Icahn said. "It has been successful in that niche, but that is only one small piece of the pie. By cutting itself off from lower price points, it is capping its potential for success."

Icahn says that Apple has pursued branding prestige with too much vigor, noting that "all the prestige in the world won't get somebody to buy a laptop for $1,000 when he could buy the same one for $600," a line of attack Microsoft's Steve Ballmer recently used.

In Icahn's view, Apple should split its product line in two, maintaining "prestige" products on the higher end, but also introducing a differently branded line of bargain-priced hardware and selling it at discount chain stores, thereby extending Apple's reach among retail outlets and not just consumers.

Apple does have some presence in retail chains; it sells its popular iPhone handheld at Wal-Mart, for example. But the company has been reluctant to stray too far from its own Apple Stores and other official Apple retailers.

Although he did not say exactly how he plans to exert pressure on Apple to change its ways, Icahn historically has shown an affinity for proxy fights in which he installs individuals sympathetic to his views on the board of directors of a given company, taking the fight from public statements to the very leadership of the firm. In Apple's case, Icahn may push to install himself as CEO if merely taking over the board doesn't give him enough power to push the company in his proposed direction, suggested Lance Hawkins, an analyst at Redwoods Research.

http://www.infoworld.com/d/adventure...ning-apple-717
Hopefully he'll take a hand-off approach this time.
sw1tcher is offline   9 Reply With Quote

Reply
MacRumors Forums > News and Article Discussion > MacRumors.com News Discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Similar Threads
thread Thread Starter Forum Replies Last Post
Carl Icahn Buys Additional 2.8M Apple Shares Raising Stake to Nearly $4.5B MacRumors Mac Blog Discussion 78 May 20, 2014 03:14 AM
Carl Icahn Abandons Push for Apple to Boost Stock Buyback MacRumors MacRumors.com News Discussion 103 Feb 14, 2014 01:42 PM
Carl Icahn Buys $500 Million More in Apple Shares Following Earnings Dip MacRumors Mac Blog Discussion 98 Jan 30, 2014 12:26 PM
Carl Icahn Presses for Apple Shareholder Vote on Increased Stock Buyback MacRumors MacRumors.com News Discussion 360 Dec 30, 2013 02:21 PM
Nuance Adopts 'Poison Pill' Measure After Carl Icahn's Apple Investment MacRumors Mac Blog Discussion 21 Aug 21, 2013 01:33 PM

Forum Jump

All times are GMT -5. The time now is 05:33 PM.

Mac Rumors | Mac | iPhone | iPhone Game Reviews | iPhone Apps

Mobile Version | Fixed | Fluid | Fluid HD
Copyright 2002-2013, MacRumors.com, LLC