logo
  Join        Login             Stock Quote

Apple's Cook Calls Einhorn's Proxy Fight A 'Silly Sideshow'

 February 12, 2013 01:25 PM
 


(By Balaseshan) Apple Inc.'s (NASDAQ: AAPL) Chief Executive Tim Cook said David Einhorn's preferred stock proposal is "creative," but called the hedge fund activist's shareholder lawsuit as a "silly sideshow".

During a Goldman conference, Cook said that the board is in "very active" discussions about returning additional cash to its shareholders.

Shareholder uproar over unlocking value has intensified after Einhorn's Greenlight Capital last week criticized a proposal that would prevent Apple from issuing preferred shares and urged shareholders to vote against the proposal. He also sued Apple saying that the iPhone maker has volated SEC norms by bundling more than one matter in to a single proposal.

[Related -Can Eric Schmidt Resolve Google Inc's (GOOG) Biggest Challenge After $100 Mln Bonus?]

Subsequently, Apple issued a statement saying that shareholders would still have the right to approve preferred stock even if the proposal is adopted.

Apple has invested around $10 billion in capital expenditure last year and that the company will spend a similar amount this year, Cook said at the conference on Tuesday.

"We're investing in retail around the world, in product innovation, in new product, in supply chain," the Wall Street Journal reported quoting Cook as saying. "We're acquiring some companies."

[Related -Sobering Quarter and Guidance for Long-Time Apple Bull]

Apple plans to return $45 billion to shareholders in the form of share repurchases and dividends over three years, the company said in a statement of February 7. Apple announced a dividend of $2.65 a share and buyback in March 2012 .

RBC Capital analyst Amit Daryanani expects that Apple could double its dividend to a 4%-plus yield – or more - and start returning additional excess capital to shareholders.

"In our view, an increase to a 4%+ dividend could get the stock moving upwards in the near-term as the company has ample cash to fund the dividend ($43 billion domestic cash)," Daryanani wrote in a note last week. 

Wall Street, which was expecting some signs of revision in capital allocation, were disappointed with Cook's comments, resulting in 1.5 percent drop in Apple shares in mid-day trading on Tuesday.

The stock has been trading between $435.00 and $705.07 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageWinter is Coming! Here's My Favorite Seasonal Trade

Over the years, I've been successful trading weather patterns as they relate to commodities such as crude read on...

article imageHow To Avoid 5 Common Investing Mistakes

When it comes to successful investing, the field of behavioral finance has shown that sometimes the worst read on...

article imageSector Detector: Bulls Go Down Swinging, Refusing To Give Up Much Ground

Although the stock market displayed weakness last week as I suggested it would, bulls aren’t going down read on...

article imageThe Bumpy Road Ahead To Policy Normalization

When the dust clears from tomorrow’s Fed announcement, the crowd’s expecting that the slow but persistent read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.