Investor Carl Icahn Dumps Apple Shares Over China Concerns

[Rogifan]

The problem is that Apple seems pretty static, and clueless. iPhone is in (relative) trouble, iCloud is inefficient, iPad is stagnant, product pipeline doesn't seem that great, they had several sw blunders in a row. Add the fact that Apple's marketing strategy is lacking (same old thing over and over, except for the Cookie monster, I give you that).
That's the real problem, not only the stocks. Apple needs a shake up.

And I'm sure some would have said the same thing back in the Jobs era when the stock dropped hard. And heck some were calling for Cook's head in 2013, yet Icahnn kept buying more shares. Even now he says he's getting out because of China, not Tim Cook and will get back in if China situation improves.

 

[Naaaaak]

Think about the billions that Tim Cook spent to buy back stock that was near all-time highs – and is still spending! Billions to buy back ownership of an exceedingly small fraction of the company. Absolutely wasted. Flushed. Burned. I have no idea why he succumbed to this douchebag, whose plan was clearly to ride a bump induced by buybacks among other things, then cash out big.

We like to make fun of MS for buying Skype for 8 billion and other dumb inflated tech purchases. The billions Cook spent could have been so much more productive, such as:

• Hiring significantly more QA and devs to make iOS and Mac OS less ******.
• Playing Apple ads for half the spots in the Superbowl.
• Lobbying the **** out of Congress.
• Building identical spaceship headquarters in other countries (in case they need to actually relocate for tax purposes).

And he'd still have money left over from this wasteful buyback!

Tim Cook's stock buyback plan has been the single largest burning of cash in the tech industry by far. He was a good operations guy, but he has no sense of direction and only offers leadership on social issues. That's worth billions I guess.

 

[69Mustang]

I can't say his stance is wrong. China is being unusually aggressive about trying to stop Western influence.

100% right. Not many in this thread wants to say it because it's easier to throw up red herrings about products, or claim he's pumping and dumping. Like him or not, what he said regarding China is true. It's effect on Apple is also true. The gov't can, at a moments notice, enhance or impede Apple's success in their country. For someone in the stock market to make money, and he is, China's protectionism is a concern. Especially when they openly make it known they will enhance their home grown brands over any foreign brand that has too much influence. The people with the pump and dump claims are either being facetious or don't really know what pump and dump really is.

 

[mildocjr]

This is alright, this means that the investors will all jump out, driving the stock price down so I can buy a whole bunch for cheap, then when they realize they made a mistake by selling, they'll buy back in and drive the price back up. It should only take the iPhone 7 release, then about mid-November, I sell, rake in my profit, and re-buy in January once people have sold their short-term gains from the iPhone 7 sales, and hold on for the iPad and MacBook refresh. Can't forget about putting my profit gains away so I can pay the taxes on them.

So I'll jump right on in there and chant with the rest, Apple is Doomed!, Apple is Doomed! Long live Microsoft! lol.

 

[pat500000]

"Everything is fine. We been getting high sale at this moment." -Tim Cook.
I really wish Tim and his Apple friends were honest to us rather than putting a fake smile.
I would respect him if he said they weren't doing that great and they recognize that they need improvement in other areas like mac desktops.

 

[yaxomoxay]

And I'm sure some would have said the same thing back in the Jobs era when the stock dropped hard. And heck some were calling for Cook's head in 2013, yet Icahnn kept buying more shares. Even now he says he's getting out because of China, not Tim Cook and will get back in if China situation improves.

I don't think that it's Cook that has to leave. It's all the untouchables below him that at the last presentation seemed like an old gang of old dudes in a country club.

 

[apolloa]

Yeap, this is a sign of things that may come. Seems to be the Chinese government may pressure Apple to not use Foxconn so much then? And you don't want to annoy them as they do what they like, I believe they still imprison and torture those who openly oppose them.
I think China has Apple over the proverbial barrel.

 

[doelcm82]

"Everything is fine. We been getting high sale at this moment." -Tim Cook.
I really wish Tim and his Apple friends were honest to us rather than putting a fake smile.
I would respect him if he said they weren't doing that great and they recognize that they need improvement in other areas like mac desktops.

I could respect what you said if you didn't think mac desktops were the solution to Apple's growth issues.

 

[Gasu E.]

I wish I'd made 2 Billion

Last year, I made over 2 billion...


cells.

 

[apolloa]

Stock at $130 last year, $94.68 (and going down) right now. And sales down.
If there's any sanity left in Cupertino, heads are going to roll.

The heads have already been 'rolling'. Unfortunately they have mostly been the wrong heads...

Perhaps Apple could start by getting rid of all those fashion experts they've hired? One thing Apple has hardly had any need for help in is design.

 

[American Hero]

This is alright, this means that the investors will all jump out, driving the stock price down so I can buy a whole bunch for cheap, then when they realize they made a mistake by selling, they'll buy back in and drive the price back up. It should only take the iPhone 7 release, then about mid-November, I sell, rake in my profit, and re-buy in January once people have sold their short-term gains from the iPhone 7 sales, and hold on for the iPad and MacBook refresh. Can't forget about putting my profit gains away so I can pay the taxes on them.

So I'll jump right on in there and chant with the rest, Apple is Doomed!, Apple is Doomed! Long live Microsoft! lol.

The iPhone 7 will be the first iPhone to miss sales expectations after launch.

 

[routine_analyst]

Is this an attempt to get the stock price to drop so that he can come back in and make another 2 billion off of it?

 

[American Hero]

One thing Apple has hardly had any need for help in is design.

.... Please tell me you're kidding.

 

[macplay]

Bye bye old man
Carl

 

[pat500000]

I could respect what you said if you didn't think mac desktops were the solution to Apple's growth issues.

I didn't say desktop is the solution. I said they could focus more in other areas...an example of mac desktop.
What I mean is that they need to figure out their own deficits.

 

[bushido]

dont know who that is. is he related to Kim Kardashian?

 

[petsounds]

This is the same guy who kept talking about how he really believed in Apple. What a slimeball.

 

[617aircav]

I would sell my 600 Apple shares too but I would be out a couple thousands. Fingers crossed.

 

[thermodynamic]

China is a very erratic country in regards to how they treat American companies selling goods there. I think American companies would be smart to pull manufacturing out of there and set up elsewhere. Obviously this will take time, but we as consumers can start but not buying clothing made in China. Why should we give them money if they treat our companies so badly?

This should also be a wake up call to Tim and co. - they need to step up their game. Services can't be updated once a year - they need to be continually updated. Tic toc of iPhone upgrades won't work anymore. If iPhone 7 looks like 6 again that means they will have lost another year. Tim - light a fire under your employees asses.

Why not apply to work there? A lot of us would love to, believe it or not. And Cook himself has criticized colleges since Americans with degrees aren't good enough, so until he can get students refunded for the antiquated classes that colleges are weaseling people out of money on, and yes that happens and students and taxpayers and workers and companies and every last person is obviously affected as a result (!!!)... the best he can do is hire and train in. His points are valid, and colleges need to put out refunds because a lot of people encouraged to get the degrees the tech companies want have been sub-par, right down to grade inflation... and for the costs so many schools demand, to not put out relevant and recent concepts has surely got to be huge in scope. And, companies don't always have the time or other resources to train in - as much as it's easy to sit here and say "He should just train people instead of scapegoating", there are numerous factors and colleges are supposed to be training the people to make them of some value in which they can improve upon. Not sell totally useless or outdated fluff that isn't useful to companies to begin with.

 

[JPLC]

Dear Mr. Icahn,

If you read this, please contact me to donate me 0.00001% of your money. I'm worth it!

Thanks!

 

[WiseAJ]

Just bought some more shares, not quite on his level though.

 

[thermodynamic]

Apple should move China manufacturing to U.S. and India, hit them back where it's hurts and maybe they will get the message.

It's not that easy nor simple to do...

 

[Naaaaak]

The problem is that Apple seems pretty static, and clueless. iPhone is in (relative) trouble, iCloud is inefficient, iPad is stagnant, product pipeline doesn't seem that great, they had several sw blunders in a row. Add the fact that Apple's marketing strategy is lacking (same old thing over and over, except for the Cookie monster, I give you that).
That's the real problem, not only the stocks. Apple needs a shake up.

This.
What's the next big thing for the iPhone besides "thinner / worse battery"?
What's the roadmap for the iPad besides "treat it like a big iPhone with a pencil"? They refuse to do a proper tablet OS. Tim Cook has gone on record saying the iPad is the future of personal computing – okay, then why are you still doing Mac OS? Where are your balls to commit? Steve Jobs killed other product lines for less. I would hate if they did this, but it just goes to show they don't any direction and are afraid to commit – which is killing us slowly with mediocrity.

 

[Attirex]

I predict Apple will be out of business before they even have a chance to move into the Spaceship campus.

 

[Rocketman]

I said to look out for prices between $92 and $95. Today AAPL closed at $94.81.

#235

Set your limit orders.

As for Icahn, he was up 40-50% and forgot to install a trailing stop so he could have sold at near $130. So much for smart or greedy.

If you follow my opinion and buy this level, put a trailing stop at about $135, the most recent high.

also:

http://seekingalpha.com/article/3969055-apples-dividend-buyback-joke

I wonder if they could borrow enough with negative interest rates in EU to go private and move HQ to Ireland with no possible blast-back at all. It would save 42.5%-10%=32.5% in income taxes alone. 76% off current taxes would be $4.5B rather than $19B in federal income taxes alone.

Look at Apple's capital return program and debt position in detail:

16717-13719-aaplbuybacksq22016-l.jpg