Carl Icahn thinks Apple is currently selling at half price

Michael Bluth

Well-known member
Disagree. Icahn just wants the stock price to go up because he owns a boatload of shares.

Apple is fairly valued, perhaps SLIGHTLY undervalued, but it's certainly not half-price...it's market cap is massive
 

eastside_purple

Well-known member
Here is Icahn's entire letter. I haven't read through it in its entirety, but he definitely demonstrates he knows the business quite well and he put a fair amount of thought in his valuation. It's prudent to be skeptical of Icahn's motives given his biased interest, but I wouldn't rule out he isn't correct that Apple is substantially undervalued.

http://www.shareholderssquaretable.com/sale-apple-shares-at-half-price/

I'm particularly interested to see if Tim Cook responds by increasing share buy backs significantly.
 

Michael Bluth

Well-known member
It may very well be undervalued, but to say it's half-price I just cannot agree with. If Apple's price were to double, that would put it's market cap at roughly $1.2 trillion, which would make it the 14th biggest economy in the world based on GDP, right after Spain and right above Mexico. That would also increase it's P/E to over 32, which is well above average for mature companies like Apple, and in line with many small cap growth stocks. A P/E that high should indicate Apple's growth rate is consistently going to increase at a healthy percentage, which is really not possible for them because of how big the company already is.

Having said all that, I'm quite positive Carl Icahn has done his homework, and done it better than I have...but he also has different motives.

(all in my humble opinion)
 

LittleCardsDad

Words Like Violence
Here is Icahn's entire letter. I haven't read through it in its entirety, but he definitely demonstrates he knows the business quite well and he put a fair amount of thought in his valuation. It's prudent to be skeptical of Icahn's motives given his biased interest, but I wouldn't rule out he isn't correct that Apple is substantially undervalued.

http://www.shareholderssquaretable.com/sale-apple-shares-at-half-price/

I'm particularly interested to see if Tim Cook responds by increasing share buy backs significantly.
Icahn loves getting Tim Cook to respond.
 

eastside_purple

Well-known member
Apple sets another all time high: $450+.

Icahn made an all time great call, but Warren Buffett is the true winner here. Apple now makes up 45% of Buffett’s portfolio as his $35B stake has tripled to $105B+!

Nokia is value priced at $4
 
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D4fan

Well-known member
Who knows what was truly made. Inflation is accelerating pretty fast. Have you tried to buy lumber to build a home lately? Materials are up over 20% in the last few weeks. One contractor I spoke with yesterday said he had three clients back out from a fall build date to a spring date due to prices rising above what they could afford. He builds in a relatively rural area and can not compete with money moving from New York to Florida. He may build in Florida over the winter just to keep busy.

Anyway, I have thought many times since the six trillion dollars infused into our economy with no value of goods or services provided for that money it will cause inflation. Stocks have to keep going up to stay ahead of inflation if they want to keep their value.
 

eastside_purple

Well-known member
AAPL top and bottom line growth has clearly outpaced inflation by multiple factors by any measure. The service/subscription segment built by Cook is the stuff of genius. 🤷🏼‍♂️
 

EHS 2001

Moderator
My position in Apple is up 843% from when I invested in 2011. I wish I had as much money to invest as Buffett or Icahn.
 
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