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David Einhorn might not be happy about Apple's (AAPL) proposal to give investors a say over the...

  • Thursday, February 21, 5:59 AM ET
    David Einhorn might not be happy about Apple's (AAPL) proposal to give investors a say over the issuing of preferred shares, but major shareholders seem to be. Calpers has spoken to 100 of them and found that the "overwhelming majority" support "Proposal 2." Meanwhile, Einhorn has reportedly been attacked by one of his own investors, the Nathan Cummings Foundation, for his tactics.
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This news story has 20 comments:

  •  
    I'm not surprised. Einhorn's suit makes no sense.
    21 Feb, 06:32 AM Reply Like
  •  
    Makes no sense is an understatement. It seems to me Einhorns actions have done much to hurt the already damaged stocks action.
    Harris
    21 Feb, 06:51 AM Reply Like
  •  
    better than what apple management has done in the last 6 months.
    they lead apple to be the worst performing stock in the sp 500.
    That is very difficult to do to be the very worst one out of 500.
    21 Feb, 07:06 AM Reply Like
  •  
    Your thought is that if shareholders aren't allowed to vote on whether Apple issues a preferred stock that will improve the share price?

    I don't think "very difficult" is the correct phrase. Apple made more profit last quarter than any other company in the world and is the worst performing stock in the S&P 500.

    I find that perplexing. It's possible if Apple follows that Amazon model and gives everything a way for free the share price may soar. Is that what you would like Apple to do?
    21 Feb, 08:05 AM Reply Like
  •  
    that tells you what an tremendous opportunity AAPL is....Apples fundamentals are as great as they were 6 or 12 months ago if not better
    21 Feb, 08:16 AM Reply Like
  •  
    If the issue is about what is best for investors why is Einhorn basically standing alone?
    21 Feb, 08:48 AM Reply Like
  •  
    I hope Apple ignores Einhorn and Einhorn loses a lot of money. He cost me a tremendous amount with his comments on Green Mountain Coffee. He has millions of Apple shares and he doesn't like it when Apple goes down, maybe he has finally lost his touch!
    21 Feb, 09:01 AM Reply Like
  •  
    Activist like Einhorn are a positive not a negative. You may not like his proposals but having a more focused shareholder's voice isn't a bad thing.
    I have nothing against day trading, but Apple long term fundamentals are being discounted by short term sentiment and technicals. I appreciate his input it may help create support for the stock, and flush out the intraday shorts.
    21 Feb, 09:20 AM Reply Like
  •  
    And.....as to The Einhorn Effect on Apple stock, let the stock level out a little. If anyone follows what is in the pipeline worldwide for the Apple ecosystem, they would be buying up Apple and stashing it for the future.

    Also, NOT paying dividends on a stock also has an upside. The money isn't taxed twice. Once for the company who, if wise, will be sitting and deciding carefully how to best use the massive amount of cash amassed by Apple and again by the receiver of the dividends. Depending on which State one lives in that can mean even more tax on dividend. Personally, I have been happy to watch my Apple stock hoard grow in my IRA, since 2007.

    I am a Buffet fan, not really a technical analyst fan, although I look at that, too. I would rather buy and hold a ton of Apple than a ton of Netflix and others like it. Check back eighteen months from now.

    Einhorn's move was, in the big picture, a non-event, IMHO.
    21 Feb, 10:32 AM Reply Like
  •  
    You state that the amount of the Dividend is taxed once by Apple and again by the share-holder? I believe the amount of the Dividend is a cost to the Apple company and is deducted as such.....

    Further, the Apple Board of Directors is doing a very poor job of investing the 137 Billion of CASH on hand and should be interested in all stable suggestions by their investors and others. Several members of the BOD have a terrible record relative to investing in general and operational practices in particular; take Al Gore for a prime example.....
    21 Feb, 05:00 PM Reply Like
  •  
    Al Gore should not be referenced as anything other than a gas bag.
    21 Feb, 07:18 PM Reply Like
  •  
    It is in our nature to support, praise and even revere that which is top quality, very classy, and immensely rewarding to use. Tiffany, Porsche, Pendleton for just a few various examples. However, when everyone is finally on the bandwagon, it is only a matter of time until naysayers and detractors attempt to dethrone the king by disclosing overlooked or developing weaknesses. That is what has happened with Apple, much more than what Einhorn did, as well before that flap Apple negatives were increasing, mostly about deficient management but also about no new products, overpricing and malfunctions. Apple stores were also criticized for rudeness and arrogance.

    It may be over for Apple as we knew it under Jobs, but it is still a great company with great products, for now. But it, as with all others before it, cannot sustain the top of the bell shaped curve forever and reality will eventually prevail.
    21 Feb, 10:34 AM Reply Like
  •  
    Apple is simply a revolutionary company, a business and technological anomaly in every sense of the word--has been from day one. Neither our past experiences nor historical business knowledge can predict Apple's future with any degree of certainty...and hundreds of analysts have attempted to without much success. You either have confidence in the company and its' management and hang on or jump ship.
    21 Feb, 12:20 PM Reply Like
  •  
    **********

    Look at this whole Einhorn thing from a different standpoint:

    If Einhorn has a dream of taking control of Apple:

    1. He'd want to get the price down in order to make an offer, say at $600.

    2. He'd want immediately a big free payout in preferred so he could pay back lenders some of the indebtedness arising from the takeover.

    3. He'd want a fight for control which he could win. If he promised stockholders, in a proxy fight, a big payout in the form of free preferred with a guaranteed dividend, then stockholders would vote him control.
    21 Feb, 04:08 PM Reply Like
  •  
    Reads as if you experienced a nightmare this afternoon - David Einhorn has not given any indication of acting to take control of Apple - Green Light, the financial company by which he is employed, controls only 1.3 Million shares of Apple - my feelings are that he has presented a sound proposal which is worthy of being considered by the BOD and presented to the shareholders for a vote.....
    21 Feb, 05:10 PM Reply Like
  •  
    If there was an attempted takeover of Apple by anyone, every analyst and talking head would be talking up what a great company Apple was ... All of a sudden they would be subtracting that cash out to show how much Apple was really worth. They would be yapping away .... "Even IF, there was margin compression they would still be doing better than everyone else in the tech sector."

    The share price of Apple would shoot well beyond $600/share.

    Have you ever heard anyone speculate about doing an LBO for Exxon? Who can come up with enough cash to control 51% of the largest company [by market cap] on the planet?
    22 Feb, 08:06 AM Reply Like
  •  
    I’ve been to Apple stores in Sacramento and San Francisco and they have always been extremely nice, not rude. They have been nicer than clerks in most major department stores. So, I do not understand the comment about "Apple stores were also criticized for rudeness and arrogance.” Maybe in some eastern cities, but certainly not on the west coast.
    21 Feb, 04:52 PM Reply Like
  •  
    Einhorn is looking out for himself and his clients, trying to put cash in their pockets sooner rather than later. I believe that Apple has plans for their treasure chest that will greatly benefit everyone including me, a satisfied stockholder. Apple needs money for new product development, new iCloud storage facilities in Oregon, the magnificent new headquarters in Cupertino, and all the relevant marketing, and production expenses. Bravo for Tim Cook, Jony Ive and all the other hard-working geniuses and workers at Apple!
    22 Feb, 04:32 PM Reply Like
  •  
    I am the president of a corporation specializing in the history and photography of historically and architecturally significant buildings in the U.S., Latin America and Europe. The results are provided to museums and universities and in books.
    22 Feb, 04:36 PM Reply Like
  •  
    Gensearch 2:

    You don't need 51% of a company to take it over.

    Proxy fights are sometimes won by people with little stock. They can make a cash offer to existing stockholders which satisfies their desires. Lenders are happy to make pledges of great sums to be used in the event of a successful takeover. They hold the stock as collateral under lucrative terms.

    Or, they can simply get stockholders' proxy (by offering big promises) and vote those proxies for directors' seats. Then use the seats to vote anything..Perhaps, perpetual preferred 4%.
    Those kinds of raiding of the treasury are attractive to short term
    stockholders.

    Remember Gordon Gecko ?

    This is part of the battle between traders and investors.

    If he has no other plans, Tim Cook would do well to buy back stock, the best use of disposable cash.
    23 Feb, 01:28 AM Reply Like
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