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Old Dec 4, 2013, 03:08 PM   #1
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Carl Icahn Presses for Apple Shareholder Vote on Increased Stock Buyback




Activist investor Carl Icahn has filed paperwork to ask Apple shareholders to recommend a $50 billion share repurchase to Apple's board of directors.

The request is what's called a precatory proposal, meaning even if a majority of shares vote in favor, it would not be binding on Apple's management. In an interview with Time, Icahn said he believes CEO Tim Cook and Apple's management team are doing a good job, but he believes the company should be spending more of its capital on its own shares.
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For his part, Icahn says he doesn't consider his proposal an indictment of Apple CEO Tim Cook, or the company's management, per se. "Tim Cook is doing a good job with the business," Icahn tells TIME. "I think he's good whether he does what I want or not." But, says Icahn, referring to the company's huge cash stockpile, "Apple is not a bank."

[...]

I'm not against the management of this company. But they've got too much money on their balance sheet."
Icahn is able to withdraw his proposal before the shareholder's meeting if he no longer wishes to press the issue, either because Apple agrees with him or he believes a potential proxy fight is no longer in his favor. If not, Apple would likely recommend investors vote against the proposal, even though it isn't binding.

Since he first disclosed his position in Apple back in August, Icahn has been vocal about asking the company to increase its buyback at the same time he has dramatically increased his stake in the company.

Apple, for its part, announced a significant increase in its capital return program back in April of 2013, and management pledged to reexamine its share repurchase and dividend programs in the first half of 2014.

Article Link: Carl Icahn Presses for Apple Shareholder Vote on Increased Stock Buyback
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Old Dec 4, 2013, 03:11 PM   #2
vito
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who would have thought it an investor who only cares about making even more money
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Old Dec 4, 2013, 03:11 PM   #3
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As an Apple shareholder I would like Apple to be more active in the share buyback, so I would support the motion.
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Old Dec 4, 2013, 03:11 PM   #4
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Ahh, just when I thought he'd gone away...
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Old Dec 4, 2013, 03:11 PM   #5
Swift
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Look at that face

Who doesn't despise this load of crap?
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Old Dec 4, 2013, 03:15 PM   #6
sammaffei
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Totally self serving

…making Apple buy back more shares to limit the number of outstanding shares and hopefully artificially increase the value of his investment. When that happens, he will dump and reap the profit.

He knows very well that Apple keeps that much cash on hand to buy companies outright (so they don't have to borrow to do it) and make themselves very hard to takeover.
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Old Dec 4, 2013, 03:16 PM   #7
b13o0r12e3
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Mr. Icahn, if you're reading this

here's two words for you.

****. OFF.

Yours sincerely,
Disgruntled Apple Shareholder
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Last edited by dejo; Dec 4, 2013 at 03:22 PM. Reason: circumventing profanity filter.
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Old Dec 4, 2013, 03:18 PM   #8
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Shut up, Carl.
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Old Dec 4, 2013, 03:21 PM   #9
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Apple should be spending it's money on researching new technologies, not just hoarding it for its megamillionaire shareholders. They only had like $40B after the whole time Jobs was there and now Tim Cook the beancounter siphoned off another 70-80B in just two years? And all he's doing is churning out boring and predictable iterations of Jobs' iPhone and iPad? No wonder Apple's market share is plummeting, their CEO couldn't innovate his way out of a closet.
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Old Dec 4, 2013, 03:23 PM   #10
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This just in: investor wants return on his investment.
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Old Dec 4, 2013, 03:25 PM   #11
Michael Goff
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Quote:
Originally Posted by Pyrrhic Victory View Post
Apple should be spending it's money on researching new technologies, not just hoarding it for its megamillionaire shareholders. They only had like $40B after the whole time Jobs was there and now Tim Cook the beancounter siphoned off another 70-80B in just two years? And all he's doing is churning out boring and predictable iterations of Jobs' iPhone and iPad? No wonder Apple's market share is plummeting, their CEO couldn't innovate his way out of a closet.
Their marketshare is plummeting for other reasons, it never stays as the lead in almost any category.
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Old Dec 4, 2013, 03:26 PM   #12
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Ye gods and little fishes...

…I am beginning to DESPISE this man.

He seems to have more or less singlehandedly destroyed a company that I had a fair bit of stock in, a while ago: he pumped up the share price, got out, and the company is now scraping along the bottom and is liable to get bought out for a song. Not really any different from Romney: if he can make a bunch of money by destroying a company and stepping on the faces of the employees and the small investors, he'll do it. (I sometimes think these people prefer it that way, because that way they can also contemplate how much more awesome they are than the people whose livelihoods they destroyed.)
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Old Dec 4, 2013, 03:27 PM   #13
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All he wants is a quick way to make money. If he were a long term investor he would suggest the company put more money into researching more technologies. Keeping your stock afloat means delivering quality and new products with large margins. Buying back small portions of stocks does absolutely nothing as big banks are the ones who hold a majority stake in Apple anyway.

Apple needs to continue to expand its stake in consumer electronics other than phones, computers, etc. There's little growth room left for the phone market.

Every company has an era.
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Old Dec 4, 2013, 03:28 PM   #14
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I am not a stock investor but it sure sounds like he just wants to crank up the value for a cash grab. What happens to all the other investors when the stock falls again, maybe even lower than it already is.

Hopefully other shareholders see him for what he is. Am genius or dirt bag. I do not know, but shareholders better.
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Old Dec 4, 2013, 03:28 PM   #15
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How many times is he going to ask and when is Apple going to tell him no so he can quit asking?
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Old Dec 4, 2013, 03:30 PM   #16
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Huh... buy $2 billion of Apple stock and then push for a buyback program that would raise the stock value. Doesn't seem personally motivated at all... not at all...
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Old Dec 4, 2013, 03:30 PM   #17
o9ski
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I am AAPL shareholder and would like Apple to return some money to me instead of hoarding it. It's my profits too and Carl is right.
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Old Dec 4, 2013, 03:32 PM   #18
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I find it funny how this guy has the audacity to think he should have any control in Apples finacial descions. The word "investor" is not a job position my friend. Just because you invest a large sum of your money into a company, does not mean you gain any more control in what the company does or not do.
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Old Dec 4, 2013, 03:34 PM   #19
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Apple should buy iCahn Enterprises and dump it into the Atlantic just to show that greedy Santa who's in charge of Apple.
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Old Dec 4, 2013, 03:35 PM   #20
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Yeah ....

I have to admit, his quote is priceless:

"...they've got too much money on their balance sheet."

Really? Yeah, there's really something wrong with a company when it earns too much money! I mean, hey -- I love their products and the way everything's run, but you can't just hang onto the money you earn. That's, you know, wrong - at least as long as *I* could be getting paid a chunk of it instead!

Honestly, I think there's a good argument to be made that it's time for Apple do some more acquisitions. For example, we all know it has trouble with cloud/internet related things pretty regularly. Probably time to buy up a few more companies who do those things well and roll them into the "iCloud". And although Apple supposedly bought a few companies to help improve its maps capabilities? It should have, IMO, gone all out to buy out Waze -- because that's about the only map service I've used that's truly competitive with Google Maps in accuracy and quality.

But just giving back more on stock purchases? Meh.... not really going to make Apple a better company with better products.

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Who doesn't despise this load of crap?
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Old Dec 4, 2013, 03:35 PM   #21
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Quote:
Originally Posted by o9ski View Post
I am AAPL shareholder and would like Apple to return some money to me instead of hoarding it. It's my profits too and Carl is right.
He is partially right. If Apple has this much money on cash, it is because they have nothing else better to do with it. If shares go down, the they will be able to buy them at the right time. Also there's a great risk of a huge finiancial crisis in the coming years and Apple knows that CASH IS ALWAYS CASH.
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Old Dec 4, 2013, 03:36 PM   #22
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Originally Posted by b13o0r12e3 View Post
here's two words for you.

****. OFF.

Yours sincerely,
Disgruntled Apple Shareholder
As a shareholder I agree whole hardly, I'm willing to take a loss than have this idiot make a fast buck and run.
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Old Dec 4, 2013, 03:37 PM   #23
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They should use the money to buy back their soul.
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Old Dec 4, 2013, 03:42 PM   #24
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Quote:
Originally Posted by tbrand7 View Post
I find it funny how this guy has the audacity to think he should have any control in Apples finacial descions. The word "investor" is not a job position my friend. Just because you invest a large sum of your money into a company, does not mean you gain any more control in what the company does or not do.
Umm...he is a shareholder, and that is exactly what it means.
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Old Dec 4, 2013, 03:44 PM   #25
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Just look at that smug face. I have nothing at all invested in any of this, but that man pisses me off, and I want to poke him in the eye. I think if you get rich enough, at best you ought to use the wealth in good ways like Bill Gates, or at worst go buy an island and quit dicking around with the system.
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