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

Reply
 
Thread Tools Search this Thread Display Modes
Old Jan 23, 2014, 03:31 PM   #1
MacRumors
macrumors bot
 
Join Date: Apr 2001
Carl Icahn Posts Response to Apple On Proxy Proposal for Share Buyback, Buys $500 Million More in Stock




Several weeks ago, Apple filed a statement with the SEC advising shareholders to vote against activist investor Carl Icahn's non-binding "advisory" share buyback proposal from early December.

The proposal will be voted on by shareholders at Apple's stockholder's meeting, to be held at Apple's headquarters at some point in the next couple of months. Today, Icahn published a seven-page letter to shareholders advocating for a yes vote on its proposal.

He also announced that he purchased another $500 million in Apple stock today, bringing his cumulative total to $3.6 billion. Just yesterday, Icahn revealed that he had surpassed $3 billion in AAPL ownership. He also stated on CNBC that his criticism was reserved for Apple's board of directors, not its management.

In the letter, Icahn explains his belief that Apple's stock is a "no brainer" to purchase, and that Apple's board should be supportive of a significant increase in Apple's share repurchase program. He argues that Apple's stock -- currently priced at $555 -- would be priced at $840 if its price to earnings ratio was the same as the average P/E across the S&P 500.
Quote:
We believe, however, that this share repurchase authorization can and should be even larger, and effectuating that for the benefit of all of the company's shareholders is the sole intention of our proposal. The company has recommended voting against our proposal for various reasons. It seems to us that the basis of its argument against our proposal is that the company believes, because of the "dynamic competitive landscape" and because its "rapid pace of innovation require[s] unprecedented investment, flexibility and access to resources", it does not currently have enough excess liquidity to increase the size of its repurchase program. Assuming this indeed is the basis for the company's argument, we find its position overly conservative (almost to the point of being irrational), when we consider that the company had $130 billion of net cash as of September 28, 2013 and that consensus earnings are expected to be almost $40 billion next year. Given this massive net cash position and robust earnings generation, Apple is perhaps the most overcapitalized company in corporate history, from our perspective.
Quote:
Bought another $500mil of $AAPL tday, bringing our total to $3.6 billion. If board doesn't see AAPL's 'no brainer' value we sure do. - Carl Icahn (@Carl_C_Icahn) January 23, 2014
The full letter is available from the SEC and comes ahead of Apple's first quarter earnings report, scheduled for Monday afternoon. The company is expected to report the strongest results for any quarter in its history.

Article Link: Carl Icahn Posts Response to Apple On Proxy Proposal for Share Buyback, Buys $500 Million More in Stock
MacRumors is offline   0 Reply With Quote
Old Jan 23, 2014, 03:32 PM   #2
luckydcxx
macrumors 6502a
 
luckydcxx's Avatar
 
Join Date: Jun 2013
yesssss .... AAPL is up. Keep on buying it Carl.
luckydcxx is offline   1 Reply With Quote
Old Jan 23, 2014, 03:33 PM   #3
JayLenochiniMac
macrumors 603
 
Join Date: Nov 2007
Location: New Sanfrakota
Can MR at least not post that photo of him?
JayLenochiniMac is offline   48 Reply With Quote
Old Jan 23, 2014, 03:33 PM   #4
mozumder
macrumors 6502a
 
Join Date: Mar 2009
Such horrible short-term thinking by Icahn. There could be a billion other things Apple could do with that money over the long term to improve the company.
mozumder is offline   13 Reply With Quote
Old Jan 23, 2014, 03:35 PM   #5
JackieTreehorn
macrumors 6502
 
Join Date: May 2005
Location: Amsterdam
Apple should team up with eBay, buy up iChan's hedge funds, and dump Carl and his funds into Atlantic. Or the Pacific.


Just to tell the greedy old man who runs Apple and eBay.
__________________
How's the smut business, Jackie?
27" iMac i7 | 13" MBA 3rd Gen 128 SSD | iPad 3 64Gb | iPhone 4 32Gb | iPhone 4s 32Gb | AppleTV 2nd Gen | AppleTV 3rd Gen | iPod Classic 120Gb | iPod Nano 8Gb
JackieTreehorn is offline   16 Reply With Quote
Old Jan 23, 2014, 03:37 PM   #6
MTL18
macrumors regular
 
Join Date: Jan 2013
Carl only cares about his money, not yours or mine. He wants the buy-back for short-term price gain and a higher % ownership within AAPL...
MTL18 is offline   11 Reply With Quote
Old Jan 23, 2014, 03:37 PM   #7
Cuban Missles
macrumors 6502a
 
Cuban Missles's Avatar
 
Join Date: Dec 2012
Location: East Coast, USA
Mac Rumors, PLEASE, PLEASE, PLEASE..... use a different picture. The one you keep using is creepy.
__________________
I have a collection of Apple stickers from all my Apple product purchases - they are white (the stickers not the products)
Cuban Missles is offline   11 Reply With Quote
Old Jan 23, 2014, 03:37 PM   #8
huntlane
macrumors newbie
 
Join Date: Nov 2012
Already voted no on this.
huntlane is offline   5 Reply With Quote
Old Jan 23, 2014, 03:38 PM   #9
captain cadet
macrumors regular
 
Join Date: Sep 2012
Just another way to make money off apple!
captain cadet is online now   3 Reply With Quote
Old Jan 23, 2014, 03:39 PM   #10
MacMadHatter
macrumors newbie
 
Join Date: Jun 2011
The man is doing nothing short of trying to bankrupt Apple. Apple already has a healthy dividend etc.

Buying some AAPL stocks and then saying that they should going 150 billion into debt for a stock repurchase that will only cause people like him to dump those Apple shares once he has his money and then the stock will crash.

Jobs would of told him to go to hell, Cook needs to do the same.


Oh and he now owns some Ebay shares and immediately says spin off Paypal. So what Ebay can pay paypal fees, that's why Ebay purchased them in the first place.
__________________
17" 2011 MBP i7, 8G, SSD when I get $$$
http://www.skicoloradoblog.com
MacMadHatter is offline   8 Reply With Quote
Old Jan 23, 2014, 03:39 PM   #11
Rogifan
macrumors G3
 
Rogifan's Avatar
 
Join Date: Nov 2011
Who writes this stuff?

Quote:
With respect to all of Apple’s new and existing opportunities for growth, they will only prove to be successful with strong execution from the company’s management, in whom we hold great confidence. Naysayers say Tim Cook is not Steve Jobs, and they’re absolutely right. He is Tim Cook and we believe he is doing an excellent job, and Jonathan Ive, Senior VP of Design, is Jonathan Ive and we believe he’s doing an excellent job, etcetera.
__________________
"When we se something huge and powerful we aspire to make it small and meaningful."— Jony Ive 
Rogifan is offline   1 Reply With Quote
Old Jan 23, 2014, 03:40 PM   #12
Daalseth
macrumors 6502
 
Join Date: Jun 2012
Quote:
Originally Posted by mozumder View Post
Such horrible short-term thinking by Icahn. There could be a billion other things Apple could do with that money over the long term to improve the company.
That's not what Carl Icahn is in it for. He wants dollars. He doesn't care how it impacts other investors, the companies he's investing in or even the good of the country. He's driven by greed and only exists to get more.
A truly despicable SOB.
Daalseth is offline   18 Reply With Quote
Old Jan 23, 2014, 03:40 PM   #13
bradl
macrumors 68030
 
Join Date: Jun 2008
Quote:
Originally Posted by mozumder View Post
Such horrible short-term thinking by Icahn. There could be a billion other things Icahn could do with that money over the long term to improve humanity.
Fixed that for you.

BL.
bradl is offline   2 Reply With Quote
Old Jan 23, 2014, 03:41 PM   #14
FriednTested
macrumors 6502
 
Join Date: Jan 2014
He is so pushy and clingy and annoying and shorter sighted... Not to mention creepy...!
FriednTested is offline   2 Reply With Quote
Old Jan 23, 2014, 03:42 PM   #15
koruki
macrumors 6502a
 
Join Date: Aug 2009
Location: New Zealand
lol Apple's never listened to shareholders or customers, I don't think $3b is gonna change that.
__________________
Bring back the 5S size with the A8 128GB No Protruding camera.
Steve Jobs 1955 - 2011.
koruki is offline   1 Reply With Quote
Old Jan 23, 2014, 03:43 PM   #16
FriednTested
macrumors 6502
 
Join Date: Jan 2014
Quote:
Originally Posted by Daalseth View Post
That's not what Carl Icahn is in it for. He wants dollars. He doesn't care how it impacts other investors, the companies he's investing in or even the good of the country. He's driven by greed and only exists to get more.
A truly despicable SOB.
I hope and pray Tim doesn't bend with pressure...
FriednTested is offline   7 Reply With Quote
Old Jan 23, 2014, 03:43 PM   #17
Return Zero
macrumors newbie
 
Join Date: Oct 2013
iCahn't stand any more of this guy.
Return Zero is offline   9 Reply With Quote
Old Jan 23, 2014, 03:45 PM   #18
micropig
macrumors newbie
 
Join Date: Aug 2013
"I don't always push stock buybacks...but when I do, I prefer Dos Equis. I mean AAPL."
micropig is offline   5 Reply With Quote
Old Jan 23, 2014, 03:45 PM   #19
ck2875
macrumors 6502
 
Join Date: Mar 2009
Icahn should ask (i.e. bribe) Judge Cote to be the next court appointed monitor on the ebooks thing.
ck2875 is offline   0 Reply With Quote
Old Jan 23, 2014, 03:46 PM   #20
themoffster
macrumors regular
 
Join Date: Apr 2011
I think he's right.
themoffster is offline   4 Reply With Quote
Old Jan 23, 2014, 03:47 PM   #21
Xerotech
macrumors 6502
 
Join Date: Jul 2011
If he was genuinely interested in a long term investment, he would talk more about reinvesting into different technological sectors and push for dividends based on performance. All I ever see him talking about is the stock being under valued and should be around $840. You saw what he did to Netflix, all he wants is a quick buck.
Xerotech is offline   7 Reply With Quote
Old Jan 23, 2014, 03:47 PM   #22
Jibbajabba
macrumors 6502a
 
Join Date: Aug 2011
Quote:
Originally Posted by MTL18 View Post
Carl only cares about his money, not yours or mine. He wants the buy-back for short-term price gain and a higher % ownership within AAPL...
Who wouldn't in his position
Jibbajabba is online now   1 Reply With Quote
Old Jan 23, 2014, 03:47 PM   #23
tdar
macrumors 6502
 
Join Date: Jun 2003
Sure Carl....Apple was created just for you, so that you might get even richer. None of the other 7 billion people on this planet have any use for it. It all about YOU.


Seems to be what is wrong with our world today.....
__________________
27" Core i7 iMac iPhone 5 16GB on VZ iPad New 4G on VZ iPhone 6 Plus 128GB on VZ
tdar is offline   10 Reply With Quote
Old Jan 23, 2014, 03:47 PM   #24
Prof.
macrumors 601
 
Prof.'s Avatar
 
Join Date: Aug 2007
Location: Chicago
Quote:
Originally Posted by Cuban Missles View Post
Mac Rumors, PLEASE, PLEASE, PLEASE..... use a different picture. The one you keep using is creepy.
I think that's the point. To vilify him and make him appear to be a total creeper. Which he is.
__________________
“I have not seen proven proof that [climate change] is entirely man-made.” - Joni Ernst, (R) Iowa
And the Republican party isn't the party of stupid? Okay.
Prof. is offline   6 Reply With Quote
Old Jan 23, 2014, 03:48 PM   #25
roadbloc
macrumors 604
 
roadbloc's Avatar
 
Join Date: Aug 2009
Location: UK
Nice to know somebody has $500million to throw about.
__________________
roadbloc is offline   3 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 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's Stake in Apple Passes $3 Billion Amid Continued Stock Buyback Pressure MacRumors Mac Blog Discussion 163 Jan 23, 2014 11:59 PM
Carl Icahn Presses for Apple Shareholder Vote on Increased Stock Buyback MacRumors MacRumors.com News Discussion 360 Dec 30, 2013 02:21 PM
Carl Icahn Increases Apple Stake to $2.5 Billion, Requests Immediate $150 Billion Stock Buyback MacRumors MacRumors.com News Discussion 304 Nov 2, 2013 08:11 AM

Forum Jump

All times are GMT -5. The time now is 12:39 PM.

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

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