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Carl Icahn Abandons Push for Apple to Boost Stock Buyback

Gudi said:
He wanted the stock to fall –$50 and gain back +$25. :confused:

Cause that's what he's getting with this $14b stock buyback of the past week.
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No. Wrong. As much as I dislike Icahn's manipulative ways, Icahn was not to blame for the recent crash in AAPL stock value. What triggered that was due to the "missed" analysts projections when they announced their recent quarter earnings.

If you followed AAPL stock movement every day, and have the stock ticker bookmarked on your iPhone (Stock market app) every day, then you'd know this.
 
Solomani said:
No. Wrong. As much as I dislike Icahn's manipulative ways, Icahn was not to blame for the recent crash in AAPL stock value. What triggered that was due to the "missed" analysts projections when they announced their recent quarter earnings.

If you followed AAPL stock movement every day, and have the stock ticker bookmarked on your iPhone (Stock market app) every day, then you'd know this.
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For the record, Apple didn't miss on earnings this quarter. In fact EPS was 3% above the Street consensus. What seems to have spooked investors was the iPhone sales under the estimates, and guidance for next quarter. Nobody needs a stock ticker on their phone to know this.
 
imageWIS said:
Icahn is 77 and worth $20 Billion, he doesn't need any more money. He is the poster boy for Disgusting Greed.

"Icahn went on to say that he is excited about Apple's future"

He then dirtied his adult diapers due to all the excitement.
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soon the richest guy of the cimetery ;)
 
TallManNY said:
He won. Apple did a huge buyback. And Apple has singled that they will do more buybacks. How much more would it benefit him to push on this issue again?
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He lost, because Apple did the buy backs on the sly. He didn't get to pump n dump HIS stocks because Apple isn't going to play to him, they're watching out for APPLE not one lone investor.
 
IJ Reilly said:
All of which is irrelevant.
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I understand your sentiment, but I tend to disagree. I think people's previous investment decisions play a large part in evaluating their current and future actions/motives. Call me a pessimist, but most people don't tend to change with time. That's not to say Icahn is some black/white good/evil stereotype -- everything is shades of gray -- and I certainly can't fault him for trying to make money either. I do however think his proposed buyback strategy was poor for the long-term stability of the company.

I suspect he stopped the pressure because other investment partners felt the current buyback was enough. I don't see Icahn challenging ISS, and it's a partial to total victory in his books. At least he seems to be interested in sticking around at the moment instead of selling off with a short gain.

I can't help but wonder; do you have vested interests in a large scale buyback? Looking to sell some stock with the next gain? I only say that because you seem to be a pretty ardent supporter of Icahn and the buyback.

Why do you prefer a buyback over holding cash for strategic purchases and tougher times (which will inevitably come)? Not to mention the other consideration here -- most of this capital is held overseas and has to be repatriated.
 
I must have way bigger influence over Apple than i-Cahn as they did exactly as I said it should be done. :p Apple had no choice but to comply. Bu-aaah!
 
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darkplanets said:
I understand your sentiment, but I tend to disagree. I think people's previous investment decisions play a large part in evaluating their current and future actions/motives. Call me a pessimist, but most people don't tend to change with time. That's not to say Icahn is some black/white good/evil stereotype -- everything is shades of gray -- and I certainly can't fault him for trying to make money either. I do however think his proposed buyback strategy was poor for the long-term stability of the company.

I suspect he stopped the pressure because other investment partners felt the current buyback was enough. I don't see Icahn challenging ISS, and it's a partial to total victory in his books. At least he seems to be interested in sticking around at the moment instead of selling off with a short gain.

I can't help but wonder; do you have vested interests in a large scale buyback? Looking to sell some stock with the next gain? I only say that because you seem to be a pretty ardent supporter of Icahn and the buyback.

Why do you prefer a buyback over holding cash for strategic purchases and tougher times (which will inevitably come)? Not to mention the other consideration here -- most of this capital is held overseas and has to be repatriated.
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Icahn has a history as a corporate raider. Anyone who wants to know, already knows this about him. The only question that should really matter is whether he can exercise his 1% holding in AAPL to make that kind of move on the company. The answer is a complete and obvious no. He's in this to make money, just as any stockholder should be. All stockholders gain from a buyback, so in the end it isn't about Carl Icahn at all.

I'm not an "ardent supporter of Icahn," he just happens to be right in this instance, and during the last year or more, he's been the just about the only friend Apple stockholders have got. For one, he's apparently a lot more optimistic about the company's future than a lot of people around here, including yourself it seems, who think that Apple is going to inevitably become massively unprofitable. For another, he is also putting his mouth and his money in the same place, which again is more than a lot of people around here seem to do.

And finally, I think there's a general lack of understanding about just how much money Apple has accumulated, and how quickly they are adding to the cash horde. They have more than they could ever need, unless you think they should start opening Apple Stores on Mars.
 
I'm sick of hearing of this guy. He's a billionaire throwing his money around to get what he wants.
 
Icahn is the type of guy that you see at a party and you know instinctively to grab your coat and leave.
 
mabhatter said:
He lost, because Apple did the buy backs on the sly. He didn't get to pump n dump HIS stocks because Apple isn't going to play to him, they're watching out for APPLE not one lone investor.
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Do people REALLY think he was trying to get Apple to buy his HIS stock? Sheesh!! :rolleyes:

That is not the way it works. Doing it "on the sly" accomplishes the exact same thing for him. It is not secret the number of outstanding shares (Apple has to release that information), and AAPL is a highly liquid market.

If they buy his, or someone else's shares accomplishes the exact same thing: less outstanding shares.
 
Squeak825 said:
Do people REALLY think he was trying to get Apple to buy his HIS stock? Sheesh!! :rolleyes:

That is not the way it works. Doing it "on the sly" accomplishes the exact same thing for him. It is not secret the number of outstanding shares (Apple has to release that information), and AAPL is a highly liquid market.

If they buy his, or someone else's shares accomplishes the exact same thing: less outstanding shares.
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An appeal to logic? Facts? Good luck to you.
 
giantfan1224 said:
Maybe they decided to use almost the entire year's allowance now believing that the stock price is as low as it's going to go considering their confidence in the new products to be announced this year. Whether that's the case or it's as you say, a ramp up in their buyback strategy, a stockholder can dream, right? ;)
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Maybe. If iBand or Apple TV seems like it is going to be a hit (or whatever they've got cooking in the labs), then they may think now is the time to strike.

But I suspect it has more to do with expected cash flow. They know that iPhone 5s is still going to be a hit for the rest of the year and costs will be pushed down as manufacturing process gets streamlined. And even with this big buyback, they still ended up with a larger cash pile. So it arguably still wasn't big enough!
 
TallManNY said:
Maybe. If iBand or Apple TV seems like it is going to be a hit (or whatever they've got cooking in the labs), then they may think now is the time to strike.

But I suspect it has more to do with expected cash flow. They know that iPhone 5s is still going to be a hit for the rest of the year and costs will be pushed down as manufacturing process gets streamlined. And even with this big buyback, they still ended up with a larger cash pile. So it arguably still wasn't big enough!
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In round numbers, they are looking at around $1B a week in free cash. Given that Apple is going to avoid repatriating overseas retained earnings (hoping against hope for a tax holiday?), it will be essentially impossible for them to keep the horde from growing further. I'm wondering how long they can continue to use the taxes excuse for allowing the cash to accumulate outside of the U.S. Maybe they are planning on buying a small country. Is Lichtenstein for sale?
 
IJ Reilly said:
In round numbers, they are looking at around $1B a week in free cash. Given that Apple is going to avoid repatriating overseas retained earnings (hoping against hope for a tax holiday?), it will be essentially impossible for them to keep the horde from growing further. I'm wondering how long they can continue to use the taxes excuse for allowing the cash to accumulate outside of the U.S. Maybe they are planning on buying a small country. Is Lichtenstein for sale?
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Could they make an acquisition using foreign cash while still avoiding taxes?
 
giantfan1224 said:
Could they make an acquisition using foreign cash while still avoiding taxes?
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You mean, something other than a small European country?

Seriously, I dunno. I presume they'd have to spend the money in the country where it was earned, or incur tax a liability from moving it across national borders. Since they've funneled so much of their profits through the tax haven in Ireland I'd also presume that any shifting of the cash would incur a significant tax liability. Not a good excuse for doing nothing with it, though.
 
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