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Apple Inc. Message Board

  • fastmoneypete fastmoneypete Aug 13, 2013 4:54 PM Flag

    16:51 Icahn says AAPL worth at least $625 per share

    While Apple Inc. (AAPL) earlier this year announced a large buyback, investor Carl Icahn wants to see it happen right away, near the current share price, which he considers cheap, he said in an interview Tuesday.
    "This is a no-brainer to go buy stock in a company that can go borrow" at a low rate, Mr. Icahn said. "Buy the company here and, even without earnings, we think it ought to be worth $625 ."
    The activist shareholder has made an investment of more than $1 billion , according to a person familiar with the position.
    Mr. Icahn's thesis rests on Apple borrowing at about a 3% interest rate and buying back shares right now at around $525 a piece. That would send shares to $ 625 , Mr. Icahn says, without taking into account any earnings growth.
    Mr. Icahn made the investment on the advice of his son Brett Icahn and investment partner David Schechter , who have been looking at the technology sector for Icahn Enterprises LP , Mr. Icahn said.
    Those two also led Mr. Icahn's successful investment in video provider Netflix Inc. where they have made $1 billion in less than a year. They pitched Mr. Icahn on the Apple's solid cash position and its ability to borrow with ease to fund a massive stock buyback, Mr. Icahn said.
    They also are bullish on the Apple's ability to grow earnings, and expressed enthusiasm over the possibility that Apple's coming products, such as the much- reported watch and television, will drive sales.
    Mr. Icahn says though his son and investment partner are more familiar with technology, he likes playing chess on his iPad.

    (MORE TO FOLLOW) Dow Jones Newswires
    08-13-13 1651ET
    Copyright (c) 2013 Dow Jones & Company, Inc.

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    • Great catalyst! Anyone following Icahn's performance the past several years should appreciate that at least most of his stock picks have done extremely well and that he stays invested and supports these companies for more than just a short term. Karen Finerman on CNBC stated as much acknowledging that this is less stock activism and more just Icahn recognizing that Apple is "extremely undervalued."

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