People in general get very mediocre when they have a lot of cash , especially in this kind of situation , where I believe having that much cash on hand gives a false sense of survival to the company via all that cash , instead of surviving via innovation and hard work . So , unless the Cheff Cook opens up his mind and explains to shareholders what's his idea or ideas behind keeping that much money locked up under the pillow , the man has no credibility running a company . Sorry Tim , You gotta go , and make it quick .
Sentiment: Strong Buy
Let me say something else here ....
people become very blind where greed is involved. Einhorn KNOWS this ... he's not at all shameful to take that principle right to the doorsteps of Wall St. and to Apple Mgmt. He'll play his trump card as long and fiercely as he can, in order to extort ANY cash out of Apple. Again, remember that he's out for #1 ..... HIMSELF. And, with as many shares as his fund holds, what do you think he'll do IF he can get that share price up a bit, and/or get Apple to allocate some "iPref's" to boot .........
That article makes a good point. It is highly unlikely that Apple management would take the company private due to the size, but look what happened to the shareholders at Dell. Dell had a large cash horde and is using it to screw the shareholders by selling too cheap. I would not be happy if Apple decided to buy back the common stock for 460 bucks/share.
Apple's Cash is their biggest asset against growing competition and reducing margins. They will need it even more now to keep the innovation coming. Apple will face the same management issues that all 500B + companies have faced in the past. Distributing that cash back especially the way Einhorn suggests would be fool hardy. It is the most moronic proposal for Apple at this stage. He just wants to make a quick 30% gain at cost of long term investors. How long has he been invested in Apple?
No, they will only need it back in the states when they have to use it for their LBO. Just like that thief and crooked Michael Dell. He loved his shareholders so much that he blew them a kiss while he was doing them up the #$%$.
Thank you for post . Question for you Vaibhaven , what do you want ? you don/t won't a gain of 30%? and how long are you invested in Apple if at all ? and what is wrong with a gain of 30%? I think we are all in this game for a gain NO ? I do not understand your confusing post . Sorry
Apple has big plans for their money. Don't for one minute forget that. There is ALOT coming. One thing that will be on the agenda soon, will be U.S.-built products, in U.S. plants. Apple has the know-how, AND the CASH, to make that happen. Getting away from all this FoxConn garbage will be a huge boon to the company. Plus, Apple will be part of the new generation of re-emerging U.S. Manufacturing. This carries ALOT of political and industrial clout. (It was no accident that Cook was sitting right next to Ms Obama at the State-Of-The-Union address.)
Don't be flamboozled by Einhorn and his greedy double-talk about returning value to share holders. He wants to fleece the CASH .... that's all he's after.
Look , let us be clear here about one thing ok , Einhorn is not demanding that Apple give out all cash on hand which it maintains , there is an this thing called Equilibrium at which point what you need is balanced with what your projected plans are .Otherwise you become complaisant and you forever begin to hide under your make belief shelter of cash . People want to see innovation talk of something new , something exciting and presently it has been anything but ok, When you have such strenth as $150 billion dollars , you don't put it in a CD account and hope to weather the storm coming . And the storm coming is called Samsung , Google , Amazon to name a few . This is what people value and respect . Do you get it ?
Voting against prop 2, I'm with David, Tim Cook and BOD hates shareholders, just like Michael Dell. They pay themselves all they want and then screw shareholders whenever the feel like it. Need to send them a message, and this is the only way they will listen.
Bluelay , If you do not know the answer to your question , then you should do just a little bit of study , instead of looking for quick and easy answers to be thrown at you . Just a little bit of effort on your end would go a long way to making you a better person , more knowledgeable . This time only though you get a free answer , and the answer is , Einhorn's proposal is better for all parties period . Tim is simply cooked up in his little shell , hasn't steeped out of it ever since he was under Mr. Steve Jobs protection , and that's about it . He must of really played Steve leading him to believe he knew how to run the company after his passing , well , some people really master in fake showing of their abilities, and this is what Tim has done , he represented himself something what he is not to the EX CEO Steve Jobs , and unfortunately Steve being not in a very healthy condition went for it . That is all. Again , Tim Cook is not a creative person nor is he anything original with any kind of backbone . He hides himself from everybody and only makes comments or appearances when he has no other choice .
Sentiment: Strong Buy
Apple BOD can decide to issue preferreds tomorrow. Einhorn does not want the BOD to seek shareholder approval BEFORE they can do that - why is that - who gains? Sounds to me like he wants to be able to manipulate/sue the BOD - the heill with the small shareholder.
He has a huge long exposure and now wants his money back - I say get in line....
Sentiment: Strong Buy