Here’s Carl Icahn on why he dumped Apple

Kicking the stock while it’s down.

Icahn announced that he’d bought a lot of Apple shares with a tweet in the summer of 2013 that gave the stock a 4.75% kick.

He announced that he’d sold his shares in a phone call yesterday to CNBC, which showed the stock falling as he spoke.

Icahn got into the stock to pressure Apple into releasing some of its billions of overseas cash to shareholders. He got his share and left. Good riddance.

Below: The Icahn years.

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8 Comments

  1. Dan Pallotta said:

    I must admit, news of it frightened me. I’ve worried about Apple being so dependent on China, not just for sales, but manufacturing. But after a night’s sleep, his profit-taking seems pretty transparent, and his pointing the finger at China a less-than-convincing distraction.

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    April 29, 2016
  2. Robert Harris said:

    He’s all about ego if he really liked the company he would not be going on the one station that continually wants to bash Apple. CNBC has the most biased reporting of anyone if they could have Trip Chowdrhey on every day they would. He would also not have done this yesterday mid afternoon when the stock was trying to recover he did it to show his strength. Old man big ego.

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    April 29, 2016
  3. David Drinkwater said:

    Good riddance, indeed!

    Apple was a fine company before Icahn started talking it up, and it’s still a fine company now, but I certainly don’t think Icahn’s involvement in the stock has benefited AAPL or its investors any. AAPL’s PE is about the same now as it was when Icahn started his hot air campaign (11 just before, 10 today). It did peak in between at around 18, but the reason AAPL’s share Price is up now vs two years ago is more Earnings. That’s what makes Apple successful. Why AAPL isn’t is a matter of much conjecture (and in my case, consternation).

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    April 29, 2016
  4. David Emery said:

    It’s a great day for Apple to use some of that new authorized stock repurchase money…

    Actually, it’s kinda surprising Icahn didn’t offer that stock to Apple, rather than putting it on the open market.

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    April 29, 2016
  5. Dan Pallotta said:

    Also, Apple, or someone, should write a geopolitical analysis before the FUD narrative about China shutting down sales of Apple products gains too much momentum, because that one will make supply-channel-cutback rumors look like good news if it gains a foothold, and I’ve seen at least one other CNBC attempt today to help it along. I’m no geo-political expert, but the idea that China would put a halt to the sale of Apple products seems patently ridiculous. The negative reciprocity dynamics would have to make it a mutually-assured-destruction proposition, wouldn’t it?

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    April 29, 2016
  6. Dan Pallotta said:

    Just found the first rebuttal argument to Icahn on Seeking Alpha by Mark Hibben – “Apple: Why Icahn Is Wrong About China.” He writes that, ” “While Icahn regards the Chinese government as having unlimited power, in fact, the government is severely limited by economic realities, globalization, and its obligations as a member of the World Trade Organization.” More here: http://macdailynews.com/2016/04/29/why-carl-icahn-is-wrong-about-apple-and-china/ and here: http://seekingalpha.com/article/3969595-apple-icahn-wrong-china

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    April 29, 2016
  7. Mark Visnic said:

    Icahn’s positive tweets generally were received on CNBC and twitter with derisive winks and nods as if his positive tweets were nothing more than an inside joke. When he went as public about selling out (a couple of months after he did, as it turns out) the derisive winks and nods that met his buys turned into knowing nods and reverence for his move.

    Bottom line is that human nature loves to find fault with runaway success. Apple, with the largest market cap and unprecedented levels of profitability and liquid assets, is the target of derision, the company that the general public loves to hate.

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    April 30, 2016

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