Apple’s cash drama is far from over; Einhorn’s victory could embolden others

“Apple Inc. investors are only in the first act of a drama that is likely going to intensify over Apple’s enormous cash pile,” Therese Poletti writes for MarketWatch.

“Last week’s court victory by hedge-fund giant David Einhorn and his firm Greenlight Capital may have removed the matter of Apple’s massive cash pile from the official agenda of the company’s annual shareholder meeting on Wednesday,” Poletti writes. “But that doesn’t mean the issue won’t be at the top of investors’ minds this week, as they contemplate the fact that the Apple portion of their portfolios has plummeted more than 35% over the last five months while the company has managed to balloon the cash on its balance sheet to about $137 billion.”

Poletti writes, “That sets the stage for what still could be a colorful meeting at Apple’s headquarters in Cupertino, Calif… Einhorn’s victory could embolden other investors who want Apple to stop hoarding its cash. When Apple’s shares were skyrocketing on the road to $700, most investors were happy just soaking up the rewards of a climbing stock price. Now, with the negative tone on Wall Street, Einhorn could be followed by other discontents.”

Read more in the full article here.


    1. Tim and the board should have know they couldn’t bundle the questions. In the end, nothing was changed. Just because the ability to do something is still in Apple’s corporate rules, doesn’t mean Apple will choose to do it.

      In the end, all I saw was the Tim Cook and the board do not know what they are doing with this. The same way they sit on their hands and watch the stock tank 35% over 5 months. I am getting tired of them treating the devastation of the Apple stock as a “Side Show”. It isn’t to Apple stock holders. They work for the investors and have dropped the ball. Man up and do your job.

      1. Dude…

        things haven’t changed… AAPL has been manipulated so many times…

        you probably already know this: learn how to use options puts…

        I dont defend Apple… nor any OTHER corporation… This is business as usual for the visible future. And these Hedge guys that complain are the very ones that keep the little guys from realizing the same gains… That’s not fair…

  1. Einhorn “won” only because of a narrow point of law that said Apple could not put the preferred stock question together with other items for a yes/no vote. This had nothing to do with what Apple should actually do with its cash

  2. Hedge fund investors should be biting their own tails at this point. Apple shouldn’t continue a downward spiral that started when they gave out a dividend. Give then a millimeter of slack and they’ll try to make a yard out of it. No one would have tried this and thought they could get away with it when Steve Jobs was at the helm.

    Apple’s money can be much better used than giving it to shareholders like Einhorn. Einhorn wouldn’t care if Apple tanked as long as he made a profit off of it.

  3. Einhorn is a pathetic, bottom feeder, BOZO! What a joke of a circus our judicial system has become. Actually, More like a freak show of hedge fund mongrels. Where is the SEC in defending Apple when it comes to SamDUNGS willful infringement of Apples IP? Sickening cesspool of bribes and judicial ineptness.

  4. Simply reinforces why I stopped reading Therese Poletti. What the hell is she talking about? Einhorn won nothing except a court order to uncouple voting issues, which frankly, I’m disappointed in Apple legal and Apple Senior Management for grouping these issues in the first place. Who ever Apple uses to advise it related to SEC, financial and corporate governance needs to be replaced, NOW.

  5. My suggestion is to put all hedge fund managers on a Carnival Cruise and this time don’t rescue the ship when it has a fire. Oh damn, they may jump overboard and pollute the water!

  6. Hedge fund managers can be best described as parasites, maggots and vermin but to do justice to them, they are great people to have a beer with at your local Wall Street bar as long as you’re paying for the drinks.

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