Well, The Exterminator finally revealed the size of his positions in Apple (AAPL) today, and it’s something that AAPL investors should really be afraid of. Icahn has a $1+ Billion position in AAPL, and depending on its price, could add some more. That’s a lot, especially if it’s an obnoxious fool like Icahn, who wont take NO for an answer. That to me is a big problem, more than anything else right now.
AAPL has thrived over the years by creating value for its investors through the development of high quality products that world has never seen before, which in turn results in high quality earnings. That’s exactly how any legitimate company should create VALUE. The problem is, Icahn is not a VALUE Investor; dude’s an Activist. Which means, he’s like a Leech, that’ll suck a company dry of its life source, and then move to the next HOST. It’s certainly a great strategy that has worked for him over the years, and that’s how he has made his wealth; by Bullying companies into making decisions that they wouldn’t normally make.
Here’s what I think will happen:
- Icahn begins unloading his position as soon as AAPL breaks $700.
- In the mean time, Icahn will bully AAPL into a Stock Buyback, of approximately $50+ Billion dollars.
- Icahn completely exits his position at AAPL $1000.
I request AAPL investors to be on high alert once AAPL breaks $700, as some unexpected volatility might cause High Blood Pressure.