Reservations Made for Apple's (AAPL) Dinner for Two
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Price: $283.78 +3.14%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
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In an August 22nd tweet, Carl Icahn announced the he and Apple (NASDAQ: AAPL) CEO Tim Cook were planning a dinner in September. The dinner date followed news earlier in the month (also posted on Twitter) that he has a large position in Apple. At the dinner, the magnitude of the company's stock buyback plan will be discussed.
@Carl_C_Icahn: "Spoke to Tim. Planning dinner in September. Tim believes in buyback and is doing one. What will be discussed is magnitude."
Apple currently has a $60 billion stock repurchase plan in place, of which $42 billion remains as of June 29, 2013. Icahn would like to see the repurchase amount raised and used in an accelerated buyback or tender offer.
Analysts see room for Apple to raise its buyback plan by $50-$90 billion. Icahn likely has his own numbers and Apple theirs.
So when is the dinner date?
While it is unclear the exact timing of the event, with September halfway over and no tweet from Icahn saying the event has taken place, common sense would say it is coming up shortly. It is also important to note that Apple recently announced its new iPhone 5C and iPhone 5S and the devices go on sale on Friday, September 20, 2013. It would be safe to assume that the unveiling and launch have occupied much of Tim Cook's time and scheduled. With the launch forthcoming, this could free up Mr. Cook's time and would be a good time for a dinner date. A dinner date this weekend or next week would make sense schedule wise.
Icahn's previous tweets about Apple have juiced the stock temporarily, although shares are about 2.3% below the levels they were at when he disclosed the stake on August 13. Most of the downside comes amid disappointment about the iPhone 5C, with pricing keeping the device out of the low-end smartphone market.
Given the share underperformance, the dinner date takes on even more importance for shareholders. Icahn is not known for running from a fight. He will be ready and so should Apple shareholders.
@Carl_C_Icahn: "Spoke to Tim. Planning dinner in September. Tim believes in buyback and is doing one. What will be discussed is magnitude."
Apple currently has a $60 billion stock repurchase plan in place, of which $42 billion remains as of June 29, 2013. Icahn would like to see the repurchase amount raised and used in an accelerated buyback or tender offer.
Analysts see room for Apple to raise its buyback plan by $50-$90 billion. Icahn likely has his own numbers and Apple theirs.
So when is the dinner date?
While it is unclear the exact timing of the event, with September halfway over and no tweet from Icahn saying the event has taken place, common sense would say it is coming up shortly. It is also important to note that Apple recently announced its new iPhone 5C and iPhone 5S and the devices go on sale on Friday, September 20, 2013. It would be safe to assume that the unveiling and launch have occupied much of Tim Cook's time and scheduled. With the launch forthcoming, this could free up Mr. Cook's time and would be a good time for a dinner date. A dinner date this weekend or next week would make sense schedule wise.
Icahn's previous tweets about Apple have juiced the stock temporarily, although shares are about 2.3% below the levels they were at when he disclosed the stake on August 13. Most of the downside comes amid disappointment about the iPhone 5C, with pricing keeping the device out of the low-end smartphone market.
Given the share underperformance, the dinner date takes on even more importance for shareholders. Icahn is not known for running from a fight. He will be ready and so should Apple shareholders.
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