• Home
  • Apple
  • News
  • Carl iCahn: “Apple Shares at Half Price” – Urges Buyback

Carl iCahn: “Apple Shares at Half Price” – Urges Buyback

Carl iCahn: “Apple Shares at Half Price” – Urges Buyback

In an open letter to Apple CEO Tim Cook on Thursday, activist investor Carl iCahn stated that he believes Apple shares are “dramatically undervalued,” giving the Cupertino firm an opportunity to buy back more of its own shares at a huge discount.

carl-icahn

iCahn’s note, published to his website, was entitled “Sale: Apple Shares at Half Price.” The investor believes AAPL shares are currently trading at half their actual value, forecasting growth in fiscal years 2016 and 2017. iCahn believes that growth, along with net cash, means Apple’s stock should be valued at $203 per share.

The investor believes Cook should (surprise!) ask the Apple Board of Directors to “accelerate and increase the magnitude of share repurchases” through a tender offer.

iCahn goes on to state how he believes the iPhone will continue to hold a significant share of the premium market share, and says Apple’s customers will keep coming back for more. He also sees great things for future Apple products and services, such as the Apple Watch and Apple Pay.

“These new launches will further distance Apple’s ecosystem from its peers and accelerate revenue and earnings growth in excess of the status quo,” he said.

As of August, iCahn held around 45 million shares of AAPL.

The entire text of iCahn’s open letter to Tim Cook can be found at iCahn’s website.

  1. 37809 108292Attractive section of content. I just stumbled upon your blog and in accession capital to assert that I acquire in fact enjoyed account your weblog posts. Anyway I will be subscribing to your augment and even I achievement you access consistently swiftly. 852547

  2. 997773 835551Great V I should certainly pronounce, impressed with your site. I had no trouble navigating through all the tabs as well as related information ended up being truly simple to do to access. I recently found what I hoped for before you know it in the least. 970608

Leave a Reply

Your email address will not be published. Required fields are marked *