The 77-year old activist investor announced his position on Twitter two days ago: “We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come.”
The Wall Street Journal reports that he’s been building his $1.5 billion stake in Apple over the last month. What’s his outlook? Icahn says, “Even without earnings growth, we think it ought to be worth $625.”
He’s recommending that CEO Tim Cook increase the record $60 billion share buyback program. Doing so would decrease the number of Apple shares, and raise the EPS.
This is just the latest news that helped lift Apple shares by more than 100-points. The stock is now up 27% since its July lows of $393, marking a big comeback for the tech giant.
I’ve been bullish on Apple shares. In The Truth About Apple, I told Income & Prosperity readers:
“Like all big tech companies, Apple has matured. The idea that innovation at Apple died with Jobs doesn’t sit well with me. While Apple will continue to innovate and create new products, it doesn’t really matter. Because Apple’s stock price reflects a stale business that will never grow again.”
In that June 18 email, I advised readers to buy Apple stock. Here’s exactly what I said.
Value and income investors alike should love the stock, thanks to the shareholder-friendly initiatives and the cheap stock price.
At $432, now is the perfect time to buy Apple shares. The stock is cheap, with a P/E just north of 10. The company’s growth is superior to most companies of its size. And the balance sheet is pristine, with more cash than many countries.
Apple may not have the high dividend yield that most income investors seek.
But you should be attracted to the growing dividend, huge share buyback program and the cheap stock.
I’ve personally owned Apple shares since 2010. The decline of Apple shares from $700 to less than $400 was painful. But like many Apple shareholders, I kept every one of my shares.(...)Click here to continue reading the original ETFDailyNews.com article: Apple Inc. (AAPL) Headed To $625You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
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