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Apple Replies To Einhorn, Says "In Active Discussions About Returning Additional Cash"

Tyler Durden's picture




 

Hot off the wires:

By early last year, Apple's cash balance had built to a point beyond what we needed to run our business and maintain flexibility to take advantage of strategic opportunities, so we announced a plan to return $45 billion to shareholders over three years. As of next week we will have executed $10 billion of that plan.
 
We find ourselves in the fortunate position of continuing to generate large amounts of cash, including $23 billion in cash flow from operations in the last quarter alone.
 
Apple's management team and Board of Directors have been in active discussions about returning additional cash to shareholders. As part of our review, we will thoroughly evaluate Greenlight Capital's current proposal to issue some form of preferred stock. We welcome Greenlight's views and the views of all of our shareholders.
 
As a part of our efforts to further enhance corporate governance and serve our shareholders' best interests, Proposal #2 in our proxy includes some recommended changes to our articles of incorporation. These changes were recommended independently of Greenlight's proposal and would not preclude Apple from adopting their concept.

Contrary to Greenlight's statements, adoption of Proposal #2 would not prevent the issuance of preferred stock.

Currently, Apple's articles of incorporation provide for the issuance of "blank check" preferred stock by the Board of Directors without shareholder approval. If Proposal #2 is adopted, our shareholders would have the right to approve the issuance of preferred stock. As such, Proposal #2 has the support of many of our shareholders.
 
We remain committed to having an ongoing dialogue with our shareholders to get perspectives around return of capital and driving shareholder value.

 

 

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Thu, 02/07/2013 - 16:46 | 3224060 thismarketisrigged
thismarketisrigged's picture

yup, i was watching the stock the whole day and i saw the pick up in speed by the algos, so i figured something was up.

 

perfect timing for aapl to get there stock up again, release something positive by days end and the algos will pump higher. 

 

joke

Thu, 02/07/2013 - 16:53 | 3224094 slaughterer
slaughterer's picture

Surprised the Apple Borg responded so quickly to Einhorn's whining.   Clearly, AAPL wants to play the media-market game to pump its stock.  

Thu, 02/07/2013 - 16:54 | 3224099 trav777
trav777's picture

well they ain't returning that cash to all their gullible customers lol

Thu, 02/07/2013 - 17:07 | 3224146 Stackers
Stackers's picture

When my wife says "maybe let me think about it" - thats code speak for "No"

Thu, 02/07/2013 - 18:30 | 3224380 CPL
CPL's picture

http://etfdailynews.com/2013/02/07/is-apple-inc-aapl-dead-money/

 

My favorite algo newsletter.  It appears someone is turning the guns on the good ship aapl.  So who'll be left.  At this rate.

ACER

MSI

DELL

Intel

zillion small third party shops.

Those are the hardware makers that might make it out in one piece.

Thu, 02/07/2013 - 17:26 | 3224206 Ruffcut
Ruffcut's picture

Asshole whinny asshorn bitch.

Too many useless wall street cunts' and not enuff free cash.

Ain't it a bitch.

Where's cancer when you need it.

Only the good die young.

Thu, 02/07/2013 - 17:47 | 3224268 Renewable Life
Renewable Life's picture

Fuck Einhorn!!!!

When the SHTF, that whinny bitch better get in his helicopter and fly away as far as the fuel will take him!!  Apple stock will be back in the low 100's, and his bullshit hedge fund will be belly up, which would also be a great place for all the hedge fund managers, to be physically!

At some point we will have to start making some shit again in this Country, start being innovative, and start being productive again, I'll know we are there, when wall street bankers, hedge fund managers, and bank CEO's are committing suicide by the hundreds!

Until then, pucker up, the reaming will continue!

Thu, 02/07/2013 - 18:04 | 3224319 ToNYC
ToNYC's picture

RU the real 'Jump you F*ckers' guy?

Thu, 02/07/2013 - 17:30 | 3224220 Stoploss
Stoploss's picture

I am 100% sure no one understands what's really going on here.

Currently, Apple's articles of incorporation provide for the issuance of "blank check" preferred stock by the Board of Directors without shareholder approval.

 

Now..

http://www.investopedia.com/terms/b/blankcheckpreferred.asp

Pay particular attention to the second column.

Thu, 02/07/2013 - 16:49 | 3224066 Dr. Engali
Dr. Engali's picture

And Apple gets a nice end of the day boner. Look at those robots go.

Thu, 02/07/2013 - 16:50 | 3224078 Cognitive Dissonance
Cognitive Dissonance's picture

Fading fast. Moar Viagra please.

Thu, 02/07/2013 - 16:54 | 3224098 Dr. Engali
Dr. Engali's picture

I'm reading part three of your essay right now Cd. It's been very good so far.

Thu, 02/07/2013 - 18:30 | 3224385 CPL
CPL's picture

It was excellent.  Well done piece.

Thu, 02/07/2013 - 16:55 | 3224104 ebworthen
ebworthen's picture

Someone dangled pie crust and brown sugar in front of the algo's sniffers.

Thu, 02/07/2013 - 16:56 | 3224108 max2205
max2205's picture

aapl to 550 or moar in 1 mth...fuckers

Thu, 02/07/2013 - 16:49 | 3224072 davidsmith
davidsmith's picture

Well, Reggie Middleton was wrong.  Looks like Apple has thrown in the towel--will not innovate, will not go the Google route.  Question is, why not?  Have they decided the economy is going to totally collapse (which is why some say Google's buying spree was a mistake and it is also in for a BIG fall).

 

What does Apple know that we don't?  Reggie!  Chime in.  You predicted this one wrong.

Thu, 02/07/2013 - 16:56 | 3224107 trav777
trav777's picture

Goog isn't innovating, are they?  What, android?  That makes MSFT more money than anyone?

MSFT apparently owns the SW world...

Thu, 02/07/2013 - 16:58 | 3224120 e1618978
e1618978's picture

How exactly do they need $137B + $45B more each year (and accelerating earnings on into the future) to innovate?

Google is a bad comparison, also - everything that they do fails except their core business.

Thu, 02/07/2013 - 16:49 | 3224074 jcaz
jcaz's picture

So... We're gonna do what we already said we're gonna do, and Einhorn can talk to us allll day long....

Bottom line- nothing has changed, nor will it change- Apple only has 30% of that cash in the US, they're running their hedge fund offshore....

Thu, 02/07/2013 - 16:53 | 3224085 ebworthen
ebworthen's picture

Translation:

"Thanks for the capital numb-nuts.  It's our company and we'll spend the cash the way we want.  We hear you but we're not listening.  Go ask Siri the definition of Caveat Emptor and buy some Chipotle."

Thu, 02/07/2013 - 16:52 | 3224087 thismarketisrigged
thismarketisrigged's picture

amazing how news of '' will consider it'' is driving a stock up more than 2 and a half percent.

 

i guess ben just decided to get into aapl

Thu, 02/07/2013 - 16:54 | 3224100 UncleBubba
UncleBubba's picture

It means that apple is aware of what everyone else knows, and they may put that cash to use :))))  

and i was just about to dump the feb 460 calls i got this morning... I thought my internet was freaking out when aapl moved $1/sec :) 

Thu, 02/07/2013 - 16:52 | 3224089 rguptatx
rguptatx's picture

It has gone vertical since!

Thu, 02/07/2013 - 16:56 | 3224105 slaughterer
slaughterer's picture

AAPL IS THE ROBO-BONER CHART OF THE DAY.

Thu, 02/07/2013 - 16:58 | 3224117 bonzo112358
bonzo112358's picture

Different AAPL now.  Steve Jobs would have just ignored them.

Thu, 02/07/2013 - 17:06 | 3224143 Gypsyducks
Gypsyducks's picture

I am looking forward to the day two or three months from now when we find out who used the Greenlight Ramp to quietly exit the hedge fund hotel.  By that point we will know which way the smart money traded today.

Thu, 02/07/2013 - 17:21 | 3224189 Stoploss
Stoploss's picture

Bingo.

Thu, 02/07/2013 - 17:09 | 3224153 Orly
Orly's picture

Novel idea:

Return all that cash to...the workers!

(OMG! Did I say that out LOUD?)

Thu, 02/07/2013 - 17:09 | 3224156 Temporalist
Temporalist's picture

Watch for Joey Terriblenova to say he was right tomorrow.

Thu, 02/07/2013 - 17:11 | 3224163 Nid
Nid's picture

The Jerry Springer Stock Show continues....seriously, is it possible for a "market" to be more fucked up than this one?

Thu, 02/07/2013 - 17:38 | 3224238 kaa1016
kaa1016's picture

Thought this stock was dead. It broke 465 now look out for the 20 day SMA tomorrow and then 515 over the next few weeks. Sick move in the weekly options that expire tomorrow. If you didn't get to own any, you'll have another shot tomorrow.

Thu, 02/07/2013 - 17:54 | 3224285 SheepDog-One
SheepDog-One's picture

I demand retroactive special compensation for my stawk losses....GIMME DA MONIES!!

Thu, 02/07/2013 - 17:56 | 3224288 reader2010
reader2010's picture

We Demand the sweat and blood of Foxconn slaves.

Thu, 02/07/2013 - 18:48 | 3224420 css1971
css1971's picture

And yet their long awaited new phone was a warmed over rehash of the previous device and their brand new maps were so bad the CEO had to apologise for them.

Slight cognitive dissonance there.

Fri, 02/08/2013 - 00:12 | 3225127 hedgehog9999
hedgehog9999's picture

Typical banana republic methods sans the bananas.

At the height of the Peso crisis in the early 90's a $20B bailout was put in motion to rescue the country from the abyss. They were printing every bit of the Mexican budget deficit which was out of control kind of like the Obama  budget which does not exist. They are hopeless as there is no uncle Sam to rescue them.

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