Icahn discloses Apple position, calls for bigger buyback; shares jump


Carl Icahn on Twitter: "We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today."

More from Icahn: "Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly."

Apple (AAPL +4.1%) shares have jumped on the disclosure. The company added $50B to its buyback authorization in April.

Update: Statement from Apple: "We appreciate the interest and investment of all our shareholders. Tim [Cook] had a very positive conversation with Mr. Icahn today."

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Comments (40)
  • PeakOiler
    , contributor
    Comments (299) | Send Message
     
    Misleading. A 'large position' isn't disclosure, it's merely shameless promotion. Money grubber Icahn, misleading headline.
    13 Aug 2013, 02:43 PM Reply Like
  • pagreen1966
    , contributor
    Comments (661) | Send Message
     
    Just announced on Bloomberg that investment is north of $1 billion.
    13 Aug 2013, 03:03 PM Reply Like
  • Voice_1
    , contributor
    Comments (19) | Send Message
     
    That is less than 1% holding
    13 Aug 2013, 03:10 PM Reply Like
  • David Pinsen
    , contributor
    Comments (2197) | Send Message
     
    Right. Icahn is long big. Worth noting, though, that market technician Tim Knight said today that Apple filled a gap and he is short. He was bearish when Apple fell out of bed last year, btw. If you're long Apple and want to hedge your bets, here's a way to do so: http://seekingalpha.co...
    13 Aug 2013, 06:51 PM Reply Like
  • The Long Tail of Finance
    , contributor
    Comments (1722) | Send Message
     
    Agreed, he is a money-grubber.

     

    Although not the same, he's very much like what we used to call these corporate raider types in the 1980s, a two-bit "green mailer".

     

    I guess "corporate raider" has now been replaced by the more PC "activist shareholder". Yeah, right.
    13 Aug 2013, 09:01 PM Reply Like
  • financeminister
    , contributor
    Comments (1218) | Send Message
     
    He did to AAPL what Einhorn tried. Hopefully not a pump and dump.
    13 Aug 2013, 02:44 PM Reply Like
  • Valueplay98
    , contributor
    Comments (582) | Send Message
     
    3 days before expiration ... nice timing.
    13 Aug 2013, 02:45 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4207) | Send Message
     
    The train is leaving the station. Please buy your tickets, enter the train, and remain seated during the steep ascend.
    13 Aug 2013, 02:46 PM Reply Like
  • Doyle3000
    , contributor
    Comments (1977) | Send Message
     
    i wish i were a 'billionaire investor' so when i said something it actually had an effect. i've been saying everything that he said all year!

     

    oh well at least i still have all my shares. i'm enjoying this for sure.
    13 Aug 2013, 02:47 PM Reply Like
  • stevesko
    , contributor
    Comments (63) | Send Message
     
    I was wondering what the nice pop was caused by. If it's pump and dump, it will clearly be investigated. There was a obvious "pop" at the announcement.
    13 Aug 2013, 02:47 PM Reply Like
  • Brian Barbour
    , contributor
    Comments (1321) | Send Message
     
    A nice gain for my portfolio which is weighted 52% Apple due to how undervalued it was around $400.

     

    financeminister - he wouldn't do a pump and dump if he was asking for a bigger buyback as this releases value over time. If he happened to just want to sell on the bounce on this news then he would seriously taint his reputation and I don't think he would want that.
    13 Aug 2013, 02:48 PM Reply Like
  • financeminister
    , contributor
    Comments (1218) | Send Message
     
    your probably right... I sometimes have this skeptical voice inside me when people like Icahn prop up a stock.... I just watched a CBS 60 minutes segment on him on youtube yesterday and he keeps reiterating that he's does the "Icahn lift" for the sole purpose of profitting for himself and any outside investors who beneift are simply "collateral".

     

    Having said that, for a hedge fund manager who is as good as himself, I don't know if he is really that bothered about his reputation as long as he can get profits for himself and investors to his hedge fund. He usually does come off sounding bossy and untamed sometimes doesn't he? And big money investors seem to like it.
    13 Aug 2013, 03:10 PM Reply Like
  • Brian Barbour
    , contributor
    Comments (1321) | Send Message
     
    I was extremely surprised what he managed to do with Netflix, and i've not heard anything about him selling his stake.
    13 Aug 2013, 03:19 PM Reply Like
  • Ted Bear
    , contributor
    Comments (703) | Send Message
     
    Carl has had one heck of a run. So did John Meriwether, John Paulson and Stevie Cohen.

     

    Nobody is 'that' good.
    13 Aug 2013, 02:50 PM Reply Like
  • scott trader
    , contributor
    Comments (7021) | Send Message
     
    Icahn is savvy he knows value when he sees it...aapl's fundamentals are ten times nflx and look how that worked out for him.....
    13 Aug 2013, 02:52 PM Reply Like
  • BRASIL
    , contributor
    Comments (70) | Send Message
     
    Nice touch to a day when CNBC aired the Ellison interview again and again..
    13 Aug 2013, 02:54 PM Reply Like
  • Keep It Simple
    , contributor
    Comments (499) | Send Message
     
    CNBC is a jerk.

     

    What Ellison doesn't realize is that Steve Jobs knew that he would have to assemble Apple for his departure. It's not like last time in the 80s when he was fired. When Jobs departed Apple this last time, he made sure that it would not only survive without him but also prevail.

     

    Go Home Ellison, You Are Drunk
    13 Aug 2013, 03:01 PM Reply Like
  • Eric Landis
    , contributor
    Comments (3283) | Send Message
     
    HLF and CHK have been great investments for Icahn as well.
    13 Aug 2013, 02:59 PM Reply Like
  • Valuable Insights
    , contributor
    Comments (478) | Send Message
     
    Gratifying to know that King Carl reads our work http://bit.ly/LVJMj9 - Carl, you owe us 2 and 20
    13 Aug 2013, 03:06 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (2751) | Send Message
     
    Folks, the bottom line is that Icahn is dead-on right about Apple. With $150BN in cash and 30-40BN available in new cash flow each year added, this price is absurdly low. The rest of the S&P 500 aren't nearly as solid as Apple and they have a much, much higher PE! Apple should be at $550-$600 on current fundamentals. If they bring out great new phones and software in a few weeks, as I expect, it should be setting new highs. Even the high $400s is a ridiculously low price. Mr. Market got incredibly depressed about Apple's product cycle and oversold Apple by a tremendous amount!
    13 Aug 2013, 03:09 PM Reply Like
  • Bleecker Street Research
    , contributor
    Comments (497) | Send Message
     
    It's kind of hard to "dump" a $1 billion investment. Not that I would know though...
    13 Aug 2013, 03:10 PM Reply Like
  • Voice_1
    , contributor
    Comments (19) | Send Message
     
    Icahn buying the stock does not make the stock any more valuable. Company fundamentals, growth prospects, and profitability is not driven by who is owning it. Remember, when people like Icahn buy it, it is often to make a fast buck. Entering into the stock now will be dangerous as you may be left holding the bag when Icahn dumps the stock. You may never know what hit you. Be careful.
    13 Aug 2013, 03:13 PM Reply Like
  • Brian Barbour
    , contributor
    Comments (1321) | Send Message
     
    voice- none of the things you mentioned directly make a stock more valuable, it is actually people like Icahn buying it that makes it more valuable.

     

    In the end the market is determined by demand/supply.

     

    Things like fundamentals and growth prospects just influence demand/supply.
    13 Aug 2013, 03:28 PM Reply Like
  • rocback
    , contributor
    Comments (1098) | Send Message
     
    Ican has made between 100 to 140% of his big investments so far this year, including Herbal Life, Netflix, etc. Apple is next when it hits $800.
    13 Aug 2013, 03:45 PM Reply Like
  • Cagdas Ozgenc
    , contributor
    Comments (405) | Send Message
     
    Shouting my ass off for the last few days, but SA has an embargo on me.

     

    http://seekingalpha.co...

     

    13 Aug 2013, 03:26 PM Reply Like
  • jebworks
    , contributor
    Comments (183) | Send Message
     
    Icahn is one of the savviest investors around and has been for decades. Not a recent newbie glued to a screen. Glad to be on the ride with him on AAPL.
    13 Aug 2013, 03:28 PM Reply Like
  • Keep It Simple
    , contributor
    Comments (499) | Send Message
     
    Watch out for endless positive articles on AAPL now.

     

    Oh how quickly the news spin will turn in favor of Apple.

     

    http://bit.ly/14upYBp
    13 Aug 2013, 03:34 PM Reply Like
  • aocdan2000
    , contributor
    Comments (14) | Send Message
     
    Well, this news certainly didn't hurt the Oct call options I purchased last week!
    13 Aug 2013, 04:06 PM Reply Like
  • Backspan
    , contributor
    Comments (5) | Send Message
     
    How can Ichan have sway on Apple ??

     

    a 5% stake in Apple is over $21 Billion. Ichan can't
    possibly own much more than that. Maybe he gets
    a board seat, but will everyone listen to him ?? I doubt it.
    13 Aug 2013, 04:06 PM Reply Like
  • Backspan
    , contributor
    Comments (5) | Send Message
     
    What's the Big Deal ??

     

    If Ichan owns a 5% stake, that's over $21 Billion.
    He would be lucky to own such a large holding.
    Maybe 5% will get you a board seat at Apple.
    Will the board listen to his suggestions ?? I doubt it.
    13 Aug 2013, 04:07 PM Reply Like
  • gmmpa
    , contributor
    Comments (674) | Send Message
     
    I believe Ichan's position is $1 billion. It is .005 % (half of 1%). I saw it in another article as .05% . That was wrong. I don't think Ichan wants to own Apple. However, I suspect he can make $300 million if the stock goes to $600. He can make much more then that by influencing the business news cycle.

     

    I would going long or buy some January calls or both and hang on for the ride. I definitely not short the stock. Most of the trading day was over when this news was out.
    13 Aug 2013, 05:40 PM Reply Like
  • Backspan
    , contributor
    Comments (5) | Send Message
     
    Ichan is the greatest.

     

    Keep buying & help my portfolio.
    13 Aug 2013, 04:22 PM Reply Like
  • june1234
    , contributor
    Comments (4412) | Send Message
     
    He probably heard Ackman took a large short in Apple; just messing with him
    13 Aug 2013, 05:46 PM Reply Like
  • damie225
    , contributor
    Comments (23) | Send Message
     
    Ichan literally made millions with those tweets, SEC anyone?
    13 Aug 2013, 06:40 PM Reply Like
  • cn_habs
    , contributor
    Comments (560) | Send Message
     
    The 1% know they cannot be touched by the SEC or anyone else for that matter.
    14 Aug 2013, 02:04 AM Reply Like
  • Bouchart
    , contributor
    Comments (1134) | Send Message
     
    And yet schools still teach the Efficient Market Hypothesis.
    13 Aug 2013, 07:28 PM Reply Like
  • AndrewBaker
    , contributor
    Comments (2702) | Send Message
     
    The calculation of Apple's value is now dependent on Carl Icahn and Twitter?! Yes, EMH may get you a business degree, but it won't necessarily make you rich if you choose to invest in stock markets.

     

    Crazy.

     

    (Disclosure: long Apple, and loving it!
    14 Aug 2013, 08:58 AM Reply Like
  • Valueplay98
    , contributor
    Comments (582) | Send Message
     
    Uh Icahn has 17B in assets as of May 2013 - maybe I read wrong but all I saw was that he had over 1B stake... so 5b or 20B seems preposterous (not to mention he hasn't filed anything which he'd need to do if he was over 5%) - link to Carl's top holdings:

     

    http://bit.ly/13iFzTF

     

    I suspect his "holdings" are option related - interesting to see what happens in next week or so - market makers are no dummies...
    13 Aug 2013, 09:44 PM Reply Like
  • Ted Bear
    , contributor
    Comments (703) | Send Message
     
    So, Icahn in, Tepper out.

     

    A new bull enters the ring.
    14 Aug 2013, 08:44 AM Reply Like
  • Warren Buffett007
    , contributor
    Comments (1093) | Send Message
     
    I think Is a good deal.
    14 Aug 2013, 10:42 AM Reply Like
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