"If Apple (AAPL -2.5%) thinks the lawsuit is a waste of resources it could simply end the matter...

"If Apple (AAPL -2.5%) thinks the lawsuit is a waste of resources it could simply end the matter by ... filing a new proxy that unbundles the proposed changes," says Greenlight Capital, not amused by Tim Cook's dismissal of its suit as a "silly sideshow." Separately, Gene Munster thinks Cook's Goldman remarks indicate a cheaper iPhone will arrive - though Cook insisted Apple won't compromise on product quality, he also noted how Apple introduced cheaper iPods and a low-cost Mac alternative (the iPad) without doing so. Could this design do the job?

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Comments (7)
  • hahaha48
    , contributor
    Comments (1411) | Send Message
    why Apple do not just unbundles the 3 proposals?
    To begin with why did Apple propose limiting the board's power to issue prefer stocks?
    The next thing you know Cook is going to propose you need stock holders approval to fire him and claim that gives more power to the stock holders.
    If Cook really is serious about giving more power to the stock holder he should hold a referendum and stock holder vote for how much divident they should get. That will be great. Give them a choice of eliminating all dividents, cut it by 50%, no change, increase it by 50% or increase it by 100%.
    I know exactly what the vote will be. Increase it by 100%.
    So the stock holder know more about prefer stocks than the board but they do not know more about dividents than the board?
    That was similar to giving the 18 year old the right to vote. They can be sent to Vietnam and get killed but they are not mature enough to vote. (I know that was history and I was like Cramer who got a high draft number)
    12 Feb 2013, 06:26 PM Reply Like
  • Feierdrake
    , contributor
    Comments (21) | Send Message
    Without getting into haha's silliness, let's look at the "the lawsuit...it (Apple) could simply end the matter by ... filing a new proxy that unbundles the proposed changes."


    Talk about a silly sound bite. They could do that, but legally it would be impossible to accomplish before the annual meeting.


    So that would simply put it off for a year. Einhorn seems to want some "free" preferred stock. (haha probably does too). If Apple were to pass their plan, then likely it would be another year (though not necessarily, before preferred could be issued).


    My question is why is Einhorn so hot on preferred, and it's probably the same reason that Buffet wanted preferred from BofA. Should apple ever stop generating significant growth, the preferred stock would automatically continue to pay out essentially, the profits, and the regular stock would be trading for $50 a share, as post tax the preferred could require almost all of the profits.
    12 Feb 2013, 07:20 PM Reply Like
  • milehr
    , contributor
    Comments (688) | Send Message
    Cook should do less talking. Ignore iHorn and other speculators. They will not leave the company alone, if smell weakness. This is what Jobs would have been good for. He would not have gone to the SOTU circus, either.
    12 Feb 2013, 09:12 PM Reply Like
  • JG2000
    , contributor
    Comments (492) | Send Message
    It seems to me that the Einhorn preferred scheme would leave future investors in the common stock (that have no preferred) a lot less to like unless they wanted more of an option for major growth. I think a lot of retail investors would be confused or unimpressed with AAPL common stock under those circumstances.
    12 Feb 2013, 09:22 PM Reply Like
  • pabcanc
    , contributor
    Comments (201) | Send Message
    Two rats are playing "cat and mouse...no one is noticing the real CAT...o((!!))o




    paul sykes
    12 Feb 2013, 09:45 PM Reply Like
  • rrosey2
    , contributor
    Comments (884) | Send Message
    Wheeler-dealers want the stock to go up or down quickly so they can make a fast buck.


    Honest investors are content, in the old American way, to see the company, and thus the stock, grow gradually and firmly.


    A new family of products every 6 years is fine.
    12 Feb 2013, 11:52 PM Reply Like
  • Hank890
    , contributor
    Comments (2261) | Send Message
    Einhorn is a cheap fast-money artist, a speculator, a trader, a rapacious scoundrel. Let him waste his investor's money suing AAPL. His scheming won't get anywhere.


    Cook needs to concentrate on product dev; he can raise the dividend gradually, yes, and he can buy back shares when the price is right, and he can acquire smaller firms selectively,...when circumstances are right. That is what I expect. Short term stock price variance does not concern me. It never has.
    13 Feb 2013, 12:01 PM Reply Like
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