Yesterday it was rumored buybacks and Bill Miller (long retired following disappointing recent performance) hopium; today David Einhorn moves to beg a "fantastic" Apple not to block paying out juicy new dividends on its preferred. Claiming that the company has a "Cash problem" and a "mentality of depression", his position is basically one of demanding that cash (that we so recently noted is actually not really there - with only 31% of it onshore - and invested) be put to work. Facing increasing losses on his profitable long position, the hedge fund manager is miffed that Apple's management has banned giving sharehodlers dividend-paying preferreds. Of course the stock is surging - even though this is actually an action by Apple that removes the possibility - echo yesterday's ramp and fade... and while we are thinking about Apple, why if the world is indeed doing so well is Apple so 'depression-esque' hording cash (as we have rhetorically asked many times in the past about all firms).
More importantly, let's not forget that AAPL's cash is not some inert substance, but as we explained previously, is a very actively managed portfolio controlled by Braeburn, of which 71% is held offshore:
Our exhaustive and complete analysis of what is really happening with AAPL's cash can be found here.