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Carl Icahn Asks for Accelerated Stock Repurchase Program in Letter to Apple's Tim Cook

IJ Reilly said:
This doesn't happen. Repurchased shares aren't owned by the company, they are effectively retired.
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Or put another way, they are owned by the remaining share holders.

You have 100 million shares. Each shareholder owns one hundred millionth part of the company.

The company buys back 50 million shares. Somewhere in their headquarters they have a huge box now with 50 million share certificates. The 50 million remaining shareholders each own one 50 millionth part of the company, including one 50 millionth part of those 50 million share certificates.

If they buy back another 49,999,999 shares, the last shareowner owns the company completely.
 
Tell the angels in heaven that you had never seen pure evil so singularly personified as you did in the face of the man Carl Ichan.
 
I don't get it... Dude looks like he's on his deathbed and he's still out for more cash to pile on his billions in the bank.

He shouldn't be talking to Tim Cook about Apple's buyback program, he should be talking to Steve Jobs about how useful billions of dollars are when you're in a grave. :cool:
 
IJ Reilly said:
This is not how shares are repurchased, nor is it the affect of repurchases. A company repurchases shares on the open market, so the price is never more or less than they are worth. The reduced number of shares concentrates earnings on fewer shares, resulting in an increase in EPS.
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There you are confusing "the current share price" and "the current value of the company". Share price goes up and down all the time, while the value of the company changes rather slowly. It can be undervalued (share price is lower than it should be) or overvalued (share price is higher than it should be).
 
WRX-SRQ said:
This guy is a leech on Apple's backside. All he wants is Tim Cook to make moves that will ultimately make him more money.

Does he not have enough already. Hell, he's going to be dead in less than 3 years anyway, why does he need more.
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Oh you haven't heard? Rich people think they are taking it with them.
 
gnasher729 said:
Icahn owns 0.88% of all AAPL shares. So Apple would have to buy back all but 1.8% of its shares, that is 98.2% of all shares. To do that, Apple would have to give 98.2% of all its value back to the share holders. Icahn would have 51% of a tiny company that isn't worth much.
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True, if this were to happen in one day, but it won't. It will happen over time, and he'll be continuing his own purchase plan, which will take advantage of the inevitable dips in share price as he plays his game. The more he accumulates, the fewer shares Apple needs to buy back before he has control, and the more Apple buys back, the fewer shares he needs to buy before gaining that control. Even worse, the larger his stake, the more likely other, like-minded investors will buy the stock, making it more likely that Cook will be forced out in favor of some one willing to play Wall Street's expectations game and chase market share over profits.

You're assuming Apple's buy back program happens in a vacuum.
 
Icahn Wants Profits Now

In other words, Icahn is saying he has waited long enough to get his profits from his large position in Apple stock and "I WANT MY PROFITS NOW!!!!"
 
I would go with Mr. Cook's opinion on this one. His performance is superior to Mr. Icahn's.
 
Karloff?

fhd994EDW_Martin_Landau_004@002250.jpg
 
ChrisCW11 said:
Putting out a phone that bends, even in only limited cases, is a product flaw, period.
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You know that all phones bend (or break), right? There have already been tests showing that the new iPhones resist bending more than most phones.
 
MyopicPaideia said:
Why? So that they can all sell them at the same time and have the stock plummet like a lode stone?? Putting you back to square one or worse for all the "average joe" investors?

Buying back the stock over time IS a good idea - it give Apple more control over their own position. Buying it back all at once or at a highly accelerated rate is a BAD idea - all it will do is create a short term window for all the big holders to unload their positions and all the rest will be left no better off or worse than before the buyback. The only thing this will do is give Mr. Icahn a nice quick ROI, which, as you say, is what he is extremely good at.

But its not good for Apple and its not good for small investors, which own the majority of Apple shares.
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Having a prominent investor make positive comments and invest a lot of his own money in a company is terrific for all investors.
 
winston1236 said:
Oh you haven't heard? Rich people think they are taking it with them.
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All of the rich people I know don't think that way. They're competitive, and they enjoy winning, kind of like:

Many Apple owners like having the best computers out there.
Many Apple owners like having the best phone out there.
Many Apple owners disparage others for not seeing things their way.
 
MacSince1990 said:
So true LOL! And look at those nails. Jesus. I've literally noticed a total of maybe three other guys' fingernails in my life, and his are just.... he looks like a male witch.
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Here's a thought the leak images over the years of Apple to be released product ~ maybe we have found the culprit with his nail !!!!!
 
gnasher729 said:
Or put another way, they are owned by the remaining share holders.

You have 100 million shares. Each shareholder owns one hundred millionth part of the company.

The company buys back 50 million shares. Somewhere in their headquarters they have a huge box now with 50 million share certificates. The 50 million remaining shareholders each own one 50 millionth part of the company, including one 50 millionth part of those 50 million share certificates.

If they buy back another 49,999,999 shares, the last shareowner owns the company completely.
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Well, I suppose, but I don't understand the significance of this point. It's really just stating something I've already said in a different way. FWIW, the retired shares can be reissued, and some will be, through grants and options to employees, but this is likely to be only a small percentage of the shares taken out of circulation.
 
cwt1nospam said:
True, if this were to happen in one day, but it won't. It will happen over time, and he'll be continuing his own purchase plan, which will take advantage of the inevitable dips in share price as he plays his game. The more he accumulates, the fewer shares Apple needs to buy back before he has control, and the more Apple buys back, the fewer shares he needs to buy before gaining that control. Even worse, the larger his stake, the more likely other, like-minded investors will buy the stock, making it more likely that Cook will be forced out in favor of some one willing to play Wall Street's expectations game and chase market share over profits.

You're assuming Apple's buy back program happens in a vacuum.
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If Icahn keeps buying more Apple and if Apple "dips" to any significant degree, then these dips will make Icahn's fund look like it has lost money. Then investors won't pay the huge premium necessary to invest through Icahn's fund. Then Icahn won't have new money to buy Apple's stock in significant volume.

There just isn't any real world path to 51% control of a $600 billion publicly traded company that you are envisioning.
 
Number 1, Mr. Icahn just wants to pump up the stock price so he can sell and profit. That's his MO. Get lost, Carl.

Number 2, Mr. Icahn yes is a large shareholder. However, in order for him to actually have any power, he would have to be able to convince a large group of other shareholders representing a much larger percentage of the stock to go along with what he wants and force a vote on the matter. This isn't going to happen any time soon. So again, get lost Carl.

And finally Number 3, Apple uses that huge cash hoard to put its weight behind things and get what they want. Like pre-purchasing stocks of silicon, raw materials, buying Beats, etc. Other companies know Apple can just buy whatever it wants or go someplace else, and that gives Apple a lot of power in the marketplace. So no I'm not for distributing most of the cash to people like Icahn. So again 2x, get lost Carl.
 
gnasher729 said:
There you are confusing "the current share price" and "the current value of the company". Share price goes up and down all the time, while the value of the company changes rather slowly. It can be undervalued (share price is lower than it should be) or overvalued (share price is higher than it should be).
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No, my statement is perfectly accurate. The only "value" that actually matters is what the market says it is at any given moment (valuing being the entire purpose of the stock market). Any other value you might care to suggest is merely a theory or a guess about the future. Carl Icahn is doing nothing more than expressing an opinion about whether Apple is going to be more highly valued in the future. Only the future can prove him right or wrong.
 
IJ Reilly said:
Exactly. He says Apple is a great company with great products and great future prospects. He says the shares could be double in value. He backs up his opinion with his own money. So many reasons to hate that.

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It goes up? For the iPhone, at least.
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I think the margins for the iPhone are going to go up a lot this year. I don't think this is factored into the stock price and even Icahn's letter didn't seem to hit on this point quite right or to the right extent.
 
If the old man is so confident the price will go to 203, then double down on the amount of shares he owns.. Put ur money where ur mouth is. Total manipulation .. The rich get richer
 
IJ Reilly said:
Actually, not. Apple has done pretty much everything Icahn recommended, from accelerating stock buybacks to increasing dividends. Probably they were going to do this anyway, but it is wrong to assume that he is simply being ignored when the truth is far from it.
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They've ignored plenty that he's suggested and it's pissed him off each time.
 
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