“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.