Carl Icahn Increases Apple Stake to $2.5 Billion, Requests Immediate $150 Billion Stock Buyback

[Orr]

Icahn is like the fly in the lab in Breaking Bad.

 

[IGregory]

I don't like this iCahn fellow....he's like having a barrel of dead fish in the house.

 

[tmroper]

He makes Gorden Gecko look like Mother Teresa

The Gordon Gekko character was pretty much based on Carl Icahn. He's been around for awhile.

 

[NewbieCanada]

No idea what your lovely graphic is meant to say, but if you are as mystified by the movement of stocks as you seem to be, then one has to wonder what you understand about the markets.

The fact that you can't read a simple graphic showing portfolio performance compared to several benchmarks over a period of time, with a handy table below in case you can't read graphs tells me all I need to know about your financial acumen.

But to put it in plain English, my lack of understanding of the markets has given me a 25% annual rate of return (which includes the losses during the last recession) over the last 7 years.

 

[Ralf The Dog]

In short, it is not. In fact large stockholders are required by SEC rules to disclose transactions, and last I checked, anyone is perfectly entitled to express their opinions about anything they like.

That is why, many work through proxies.

You have the right to express any opinion you like, just so long as you are not using your public position to manipulate stocks you own. (The rules are complex and that was an over simplification, but you get the idea.)

 

[Freida]

No they lost 1500$ and the price would likely go back up.

ROFL!!! Someone can't count

10k * 2 = 20k
10k * .6 = 6k

he lost 14k as the original statement is correct and you can't count!

 

[jasonr704]

Leave Apple alone!

These guys know how to run their business, so leave it alone. Apple didn't become the company it is on the back of guys like this. All he cares about is his return on investment and not the 5-10 year halt of the company. Billionaire investors can always go find another company to make them money, which never aligns with how the company is actually run from the inside. I hope they don't change a thing!

 

[Nunyabinez]

Here is the definition of "pump and dump" from Investopedia:

"Definition of 'Pump And Dump'
A scheme that attempts to boost the price of a stock through recommendations based on false, misleading or greatly exaggerated statements. The perpetrators of this scheme, who already have an established position in the company's stock, sell their positions after the hype has led to a higher share price."

This is exactly what Icahn is trying to do: artificially inflate the stock value by having other investors anticipate an unlikely large buyback. That would decrease the number of shares and increase the share of the company each of these other investors owns. This can cause a frenzy of buying raising the price. The he sells a large quantity of the stock causing its price to fall like a rock while he walks away even richer.

By your interpretation of the definition any statement made by any analyst or firm would be pump and dump. When Goldman puts a strong buy rating on Apple they are making investors anticipate that the stock going up. Nothing that Icahn is doing is illegal or even immoral. And I seriously doubt that Icahn selling his stock would have any more than a very very temporary dip in the stock. 2.5 Billion is a lot, but not a lot Apple's outstanding stock.

 

[SeattleMoose]

Steady on the tiller Mr. Cook, do not heed the siren's song. Else you end up on the rocks like those who were swayed….

 

[Ralf The Dog]

Really? You think so? Any other words of wisdom, oh great one?

I'm so glad I have you to guide me.

Your three year numbers don't look so good.

 

[ksnell]

It's honestly not that bad of an idea if the company feels they are undervalued. For instance, if you feel your stock is undervalued by 20%, you are essentially buying dollar bills for 20% off.

Who wouldn't do that? Especially with the knowledge of what products they have in the pipeline and the direction they feel the company is going in?

 

[Ironduke]

something I have learned over the last 10 years is that many of these so called billionaires are not true billionaires they all playing chancer with the banks money

its obvious he needs a quick return to confer the interest he owes someone else

The Glaziers, Hicks, Gillete were never billionaires either

 

[charlieroberts]

I know more than one or two billionaires, most are not that smart.

Icahn has a history of making his money by buying a bunch of stock in a company, getting on the board, gutting the company, walking off with a bunch of cash while the former company faces bankruptcy. I would not be surprised if Icahn was not working with Samsung in some kind of hostile takeover gambit, probably with multiple third party proxies.

Ok, so you would NOT be surprised if someone was trying to take the most valuable company???? Im sorry but that would be a shocking surprise especially because it is damn near impossible to do so.

 

[iRun26.2]

If the stock is undervalued, why doesn't he buy more?

That says it all.

 

[SeattleMoose]

No idea what your lovely graphic is meant to say, but if you are as mystified by the movement of stocks as you seem to be, then one has to wonder what you understand about the markets.

Such a fountain of wisdom...:roll eyes:

P.S. Carl, is that you?

 

[Ralf The Dog]

something I have learned over the last 10 years is that many of these so called billionaires are not true billionaires they all playing chancer with the banks money

its obvious he needs a quick return to confer the interest he owes someone else

The Glaziers, Hicks, Gillete were never billionaires either

Exactly, Gross worth is meaningless. If you have 500 million in cash and assets, but you owe 1.5 billion, you are not rich, you are worse than broke. The average person living in the shelter is better off than you.

Edited to change stupid math error.

 

[Pyrrhic Victory]

Icahn is totally out of his league on this one.

I hope Apple's stock crashes and he goes bankrupt.

 

[iMerik]

Leave Apple alone and put your money to good use, like trying to help people (à la Bill Gates), not just yourself.

 

[paul4339]

It's honestly not that bad of an idea if the company feels they are undervalued. For instance, if you feel your stock is undervalued by 20%, you are essentially buying dollar bills for 20% off.

Who wouldn't do that? Especially with the knowledge of what products they have in the pipeline and the direction they feel the company is going in?

Yup, and that's was also what Buffet advised Jobs to do a few years back.

.

 

[goobot]

ROFL!!! Someone can't count

10k * 2 = 20k
10k * .6 = 6k

he lost 14k as the original statement is correct and you can't count!

Doesn't matter you said it was 75 cents, they already lost that money smart one. And if Someone was stupid enough not to sell it when it was in the 5$ range then they deserve to loose the money.

 

[HeHeHaha123]

Icahn't stand this guy and his schemes.

nice, using his own name against him

 

[mbh]

What percentage do you own?

Why do you ask?

 

[markdj]

By your interpretation of the definition any statement made by any analyst or firm would be pump and dump. When Goldman puts a strong buy rating on Apple they are making investors anticipate that the stock going up. Nothing that Icahn is doing is illegal or even immoral. And I seriously doubt that Icahn selling his stock would have any more than a very very temporary dip in the stock. 2.5 Billion is a lot, but not a lot Apple's outstanding stock.

Most analysts are not trying to maximize their own holdings' value.

Not all pump and dump schemes are illegal.

Selling his stock would have an effect on the price. Although it would not really be large by outstanding shares standards, it would be a big sell by someone who investors listen to.

 

[IJ Reilly]

That is why, many work through proxies.

You have the right to express any opinion you like, just so long as you are not using your public position to manipulate stocks you own. (The rules are complex and that was an over simplification, but you get the idea.)

Stock market "manipulation" is illegal by definition. The problem is, the vast majority of what the unschooled call "manipulation" is simply someone buying or selling their shares, or stating their opinions about a public company in which they are invested. Neither of these activities are manipulation.

 

[Ryth]

Exactly, Gross worth is meaningless. If you have 500 million in cash and assets, but you owe 1.5 billion, you are not rich, you are worse than broke. The average person living in the shelter is better off than you.

Edited to change stupid math error.

Yep. No different then most rich people. Cut off the money supply and most live check to check or month to month.

If you make 1 million a year but spend 1.1 million, you aren't rich, you're playing with fire.

But hey, the way our bank system works, it's all on paper anyway. Until they start punishing people for ruining the markets or others, it won't matter. We don't punish stupidity with debt anymore and that's a real shame.