Carl Icahn Says He Had a 'Good Conversation' With Tim Cook, Apple is Undervalued

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Posted November 11, 2013 at 7:40pm by iClarified

CNBC is reporting that Carl Icahn had a 'good conversation' with Apple CEO Tim Cook and noted that both believe the company's stock is undervalued.

Apple's Cook told Icahn that he's still studying Icahn's proposal to buy back $150 billion worth of the company's stock. Icahn met with Cook in late September to discuss such a buyback. However, at the time Cook did not seem interested in a buyback of that size, Icahn told CNBC.

Icahn met Cook for a 'cordial' dinner at the end of September to push his buyback proposal; however, it appeared Apple would be sticking to its $60 billion plan. He then posted an open letter to Apple CEO Tim Cook again urging him to increase Apple's stock buyback to $150 billion.

Icahn has told CNBC that he has no intention of giving up on a large buyback and may consider a proxy battle to return more value to shareholders.

"If they don't do it, we'll test the waters and see if the shareholders want us to do it and if we could win," Icahn told CNBC. "We've said we're not going away. I've said that to (CEO) Tim (Cook) and I'll say it again."

Carl Icahn Says He Had a 'Good Conversation' With Tim Cook, Apple is Undervalued

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gamerscul9870 - November 12, 2013 at 2:42am

Wow, really? Apple is top global brand for a reason, plus a new record of 9 millions iphone sold, tell me this doesn't mean profit, come on dude!

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Who's "dude"? - November 12, 2013 at 5:35pm

When determining a COMPANY's value, you take into account their balance sheet and P&L, you analyse their ratios, and so forth. By those standards, if you compare Apple's value with the value of their stocks, the value of the stocks is ridiculously overvalued. However, stock valuation is a completely different thing and separate from company valuation, subject to all kinds of factors, many of which completely irrational. Apple is undoubtably a profitable company, that's not the point. The point is that you can maximise the value of a stock while undermining the value of the company itself, and some believe that's what that prick is doing.

the voice of reason - November 11, 2013 at 11:17pm

Actually, in terms of Standard Accounting Practices, Apple is extremely OVERvalued. It used to be that the value of a company was calculated as a certain number of years multiplied by the annual income. Nowadays, the value of a stock is completely detached from company... hence companies with no assets and no income being valued at billions of dollars. Don't get me wrong, I'd love to have some shares of Apple, I'm just saying that the stock may be undervalued, but the company is not.

Mark - November 11, 2013 at 9:06pm

This guy is full of greed he is trying to make as much money as possible. And when the stock shoots higher sell all his stocks. Apple is not undervalued it's perfectly valued as it is now!

AG - November 11, 2013 at 8:51pm

Why is the title says "Google" instead of "Good"?

tdtran1025 - November 11, 2013 at 7:49pm

This vulture is at it again! The dispicable repuation precedes him. My question to you, Carl, if after A. DOES your plan and you bolt when AAPL doubles, what does that Apple? Maybe $50 billion in the cookie jar? That is never a position T Cook will take in light of the competitions from the likes of Google and Samsung. My advice to you is to take ur $ and buy in on Google and Samsung. They both have decent earning prospects.

Mojojojo - November 11, 2013 at 7:47pm

something is cooking..