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David Einhorn says he has met with Tim Cook and CFO Peter Oppenheimer in recent weeks about his...

David Einhorn says he has met with Tim Cook and CFO Peter Oppenheimer in recent weeks about his preferred stock proposal, and that the two sides continue to talk in spite of his lawsuit. Einhorn adds Cook has been more receptive than Oppenheimer, and that he remains a fan of the Apple (AAPL +1.7%) CEO's performance. Meanwhile, the sell-side is giddy at the prospect of fresh dividends/buybacks: Barclays thinks Apple can increase its payout by 30%-40% without tapping overseas cash. (more)
Comments (26)
  • So why didn't Einhorn just talk to the Apple guys first, rather than running to the courts and lawyers?

     

    Answer that and we'll be on our way to resolving one of the more serious problems that has dogged our society for the past 30 or so years.
    8 Feb 2013, 11:34 AM Reply Like
  • He did talk with them first
    8 Feb 2013, 11:39 AM Reply Like
  • These guys are such sell-outs that they do AH stuff like this just to get the stock to pop a bit, on which they jump for profits no matter how typically Wall Street their greedy behavior appears to the public. They just don't care a bit as long as money is made in any way they can make it. Money is the only yardstick, and public opinion matters to them about as much as it matters to politicians, and that is nada.
    8 Feb 2013, 11:43 AM Reply Like
  • Einhorn doesn't make his money flipping stocks on rumors and manipulation. Right now, he's the best friend an AAPL shareholder could have...
    8 Feb 2013, 11:48 AM Reply Like
  • Rico,

     

    Your comment is profoundly misleading and self-serving. Einhorn is out for himself.
    8 Feb 2013, 02:31 PM Reply Like
  • yes he is but what is the problem with that? Any person who buys shares in a company wants them to rise for their own personal gain no?
    8 Feb 2013, 06:29 PM Reply Like
  • A dividend increase has been in the works for a long time. Its just a matter of announcing it.
    8 Feb 2013, 11:50 AM Reply Like
  • Yes, but the long was too long :) No harm in pushing those computer geeks who ignore issues of capital allocation.
    8 Feb 2013, 11:54 AM Reply Like
  • Agreed no harm and I am benefitting, however, I still have a bit of a problem that the dude comes out in that manner and especially discussing details of CEO more comfortable than CFO.
    8 Feb 2013, 12:08 PM Reply Like
  • No harm you say? In my book it is an attempt at extortion. I sincerely hope AAPL counter sues.
    8 Feb 2013, 02:33 PM Reply Like
  • I predict that Apple will increase both the dividend and the buy backs but don't look for big increases in either - Apple is still a very conservative company when it comes to their financials (as if that is not an obvious statement).
    8 Feb 2013, 12:07 PM Reply Like
  • Its about time somebody lit a fire under their sorry seats
    8 Feb 2013, 12:12 PM Reply Like
  • Nonsense Dean.

     

    It is clear that Eihorn doesn't give a fig about AAPL,...he is jusr pursuing his own ugly selfish interests,...and as an investor, i resent it.
    8 Feb 2013, 02:35 PM Reply Like
  • Einhorn has his own agenda, he called the stock back in September to rise to a 1000 $, now we are trading here below 500 $ he wants a cushion for his investors, hence is asking for 4% yield on the preferred shares and comes up with this plan so Apple does not have to call home their overseas funds, might be good for Einhorn, but is all far too complicated for others, Einhorn's fund holds 1,3 mio shares or thereabout, Barclays own 25 mio as last reported, they just would like to see a somewhat more beefy dividend payment on the stock, as i make out of this article, makes sense to me. i don't want to own a preferential stock with a higher dividend, just up the dividend on the present stock.
    8 Feb 2013, 12:45 PM Reply Like
  • I agree completely with Wiesje. Let Einhorn stew in his juices. Let all that speculative trash go to blazes.

     

    WS has no business at all trying to run AAPL's business, or in fact, any real industrical enterprise.
    8 Feb 2013, 02:38 PM Reply Like
  • Einhorn is suggesting preferred dividends to improve the tax treatment:

     

    * Common stock dividends are post-tax (have to pay tax on the earning, then send out the cash).
    * Preferred stock dividends are considered interest and thus pre-tax (the amount distributed is deductible for the company).

     

    So he's coming up with a way for the distribution to be cheaper for apple.
    8 Feb 2013, 01:27 PM Reply Like
  • Einhorn is coming up with away to line his pockets at the expense of the firm.
    8 Feb 2013, 02:39 PM Reply Like
  • Yes. He wants Apple to line the pockets of investors instead of lining the corporate bank account. Turns out that's also what I want from companies I invest in. I don't invest for the good of the firm, I invest for a return.
    9 Feb 2013, 02:38 AM Reply Like
  • Here is a strategy. Sell GOOG (now at an all time high) and buy AAPL, now near a one year low (in spite of recent rise). As GOOG comes down, and AAPL goes up the investor will have some of each, which will balance themselves in the short-run, and give the investor good positions in both stocks for the long run. It is pretty clear that they will be the two tech leaders for several years.
    8 Feb 2013, 01:31 PM Reply Like
  • @ stevereid : maybe consider switching Google for AMZN - on tech stocks if i would play the differential at today's prices -  long Apple, Google and MSFT and short AMZN, Nokia and RIMM . good luck with your play.
    9 Feb 2013, 12:20 AM Reply Like
  • Einhorn predicted APPL will hit $1000 a share in a year when it was trading above 700. I guess he was unloading and or shorting AAPL at that time and now he possibly covered his shorts and bought more of AAPL and trying to make good on any upside breakout from trading range.
    8 Feb 2013, 01:58 PM Reply Like
  • CRAMER wants apple to buy NETFLIX at $180 when they did not buy it at 50. He also wants them to deploy cash by buying FIOS or CBS.
    Crazy stuff on CNBC They and their commentators are gone nuts. Since these comments from Cramer this morning ,I am not watching CNBC anymore. tell Cramer we will not sell apple as he said, we will join the David in his lawsuit.
    8 Feb 2013, 02:11 PM Reply Like
  • Einhorn's preferred idea is interesting, but why must he sue.

     

    I don't know about you, but I don't like to be sued.
    8 Feb 2013, 06:51 PM Reply Like
  • @ rrosey: if you run an investment fund and you own 1,3 mio shares of Apple and in a note to your investors back in September you predict Apple to go to 1000 $ and 5 months later the stock is trading below 500 $ you have investors asking questions and wanting to get out of the fund, that's how it works, so here comes Einhorn showing the best of his commitment and intentions for his share holders with an idea, sit tight i will fix you a special dividend stock yielding 4% and so off he goes to see the Board, who say not interested at present, so he sues to get it out in the open and get larger share holders to follow him.in the meantime his investors say look at Einhorn, he was not right on calling the stock, but hell he is fighting for us taking on this huge company and even getting a response , we love you Einhorn, here we throw some more money at you.it's a beautiful business.
    9 Feb 2013, 12:28 AM Reply Like
  • It s clear that Apple is going higher in a slow pace but higher
    8 Feb 2013, 11:17 PM Reply Like
  • @ isaacfigueroa : bon dia : this is the stock market " by the time there is clarity, you know you are lost "
    9 Feb 2013, 01:01 AM Reply Like
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