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Carl Icahn Discloses 'Large Position' in Apple, Believes Company is 'Extremely Undervalued'
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http://www.sfgate.com/news/us/article/Heinz-announces-layoffs-in-Pittsburgh-and-Canada-4728545.php
Buffett and Icahn "invest" in a company for one thing. Money.
What a lousy attempt to lure dumb money in... If it wasn't for all the dumb money holding the stock + flow of freshly created cash into it, the price would be nowhere near as high as 500. More like 200-250.
If Mr. Icahn will give us a product leak (given his "large position"), I'll buy. Otherwise, it's all speculation.
I think the layoff is not Buffet's decision. He never acted like a corporate raider or someone who strips down companies, destroy them an sell them in parts for a profit. Take an evening for studying and compare Buffett's deals with Icahn.
There is a book called "Behind the Berkshire Hathaway Curtain", great read. That might help.
A Tweet from a guy saying, "I just bought $1Billion of AAPL" is not a "simple twitter post".
In the update to the article it states: According to Bloomberg "Icahn has taken a position of at least $1 billion in Apple". Clearly stocks do not trade on fundamentals alone. Sentiment and fundamentals sometimes diverge.
Icahn's tweet apparently moved the stock approx 2.8% to the upside from the time of the tweet to the close. Not bad.
he is good powerful investor but doesn't sound like a real apple fan....... this is all about the money.
Except for the fact that when Ellison interjects himself into Apple, nobody really listens. But whenever Carl Icahn intervenes into the affairs of ANY corporation.... that company usually self-destructs within a couple of years. TWA ring a bell? How about the pathetic crapstorm known as DELL? How about the fact that Icahn's involvement in Yahoo helped to cripple and gut that company?
Well, put it differently: Why would someone who is worth $20 billion would just randomly come out and say something like this on any company, just for the sake of sharing his great wisdom?
Without anything to gain from it?
Seems a bit fishy.
The guy didn't get $20 billions just by spreading his good advice.
I don't have the time or the crayons to explain it all.
It would have become public soon in a regulatory filing. If he was looking for a quick 5% he would just sell now but that's not his M.O. He uses the public forum to advocate for changes in capital structure/dividend policy.
He already bought $1b. He might not buy any more.
stilted said:
It got him on the news (to better advocate his ideas to other shareholders) and a couple calls with a newly-receptive Tim Cook. People listen to Carl Icahn.
morespce54 said:
Without anything to gain? He wants to see it go up way higher and his visibility as a legendary investor adds credibility to his proposed changes. He owns a small percentage of Apple but he now has a platform through which to reach many of Apple's other shareholders.
How is this not stock manipulation?
Buy boatload of stocks at low price and then do publicity about it giving target price etc.
Buy boatload of stocks at low price and then do publicity about it giving target price etc.
Can someone explain how a company with a market cap of ~$440B takes itself private? Look what's happening with Dell trying to go private and it's market cap is a fraction of Apple's.
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What about Netflix?
I agree with Icahn, but manipulation much?
I agree with Carl's thesis, AAPL is undervalued. I took a position at $450 and intend to ride it until at least ~$575, regardless or product release/announcements. With that said, it annoys me how those with so much financial influence can drive a market so significantly. Icahn was also rumored to have had a large position in Blackberry, every time his name was mentioned the stock would jump or fall +/- 6%. Analysts can write a story just rumoring his involvement and it moves the markets on a day to day basis. It ends up driving every day joe/shmo investors to overreact emotionally and buy and sell at the wrong times.
I agree with Carl's thesis, AAPL is undervalued. I took a position at $450 and intend to ride it until at least ~$575, regardless or product release/announcements. With that said, it annoys me how those with so much financial influence can drive a market so significantly. Icahn was also rumored to have had a large position in Blackberry, every time his name was mentioned the stock would jump or fall +/- 6%. Analysts can write a story just rumoring his involvement and it moves the markets on a day to day basis. It ends up driving every day joe/shmo investors to overreact emotionally and buy and sell at the wrong times.
