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Icahn's next big target: Apple

Tuesday, August 13, 2013 - 01:21

Aug 13 - Billionaire investor Carl Icahn, known for his aggressive shareholder activism, took to Twitter to reveal a big stake in Apple and was not shy about his idea on creating shareholder value. Conway G. Gittens reports.

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Apple and Dell finally have something in common - Carl Icahn. The activist shareholder revealed in a tweet that his investment firm has acquired a large position in Apple and he thinks the company is extremely undervalued. That was followed up by a second tweet, saying he's had a conversation with Apple CEO Tim Cook, giving his opinion on what to do with the growing $147 billion cash stockpile. Icahn's advice: more large buybacks, which is in contrast to others calling for bigger dividends. Icahn's revelation, which was quiet on just how large of a stake he now has, comes at a possible turning point for Apple. The stock is down 30 percent from its all-time closing high set almost a year ago, with investors fretting the company that introduced the world to the iPad, iPod and iPhone has lost the "I" in innovation. By the way, during that same period, the S&P 500 is up 16 percent. Apple is hoping to quiet critics with its latest iPhone, or iPhones, which could be unveiled September 10th. Icahn, known for his aggressive style of shaking things up - sparked a rally in the stock to a seven-month high. And that helped the tech-heavy Nasdaq outperform the broader market in percentage terms.

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Icahn's next big target: Apple

Tuesday, August 13, 2013 - 01:21