Cramer: Carl Icahn wants change on Apple’s ‘imperial’ board of directors

“Only a few hours ago Apple was all about the potential of new products in China. Cramer said the Street was hyper-focused on the company’s deal with China Mobile, which CEO Tim Cook called a watershed moment,” Lee Brodie reports for CNBC. “And it made sense; China mobile has an estimated 760 million subscribers. But largely those developments as catalysts for the stock may be history.”

“Now, Cramer believes Apple may trade on comments from Carl Icahn that were Tweeted on Wednesday,” Brodie reports. “The activist investor said he increased his stake in Apple but also Tweeted critical comments concerning the way in which Apple is run. ‘Essentially Icahn said that Apple Is disgraceful for not buying back more stock given that shares are incredibly cheap here, and that it’s governed poorly so he’s going to put pressure on the company,’ Cramer explained. ‘Icahn also charged that Apple has an imperial board of directors and he wants that to change. Icahn’s also going to send a letter throwing down the gauntlet about a company.'”

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Brodie reports, “As a result, Cramer thinks the catalyst that moves Apple in the days ahead are the follow-up comments from Icahn and not metrics such as overseas sales. ‘So much for the idea that Apple now revolves around China,’ Cramer said.”

Read more in the full article here.

49 Comments

  1. Once in awhile there are people that should just quietly disappear from the face of the earth – Carl Ichan is on that list. My distain for him and his ilk has no limit. They are the very worse side of capitalism.

    1. Let’s expand on that idea. Put Cramer under one of Icahn’s arms and maybe Eric Schmidt under the other arm, before sending him off on a long walk off a short pier.

  2. What is it about this asshole that every thing he says gets picked up by the tech press and dumped on my doorstep like a dead mouse from my cat? Tim Cook give zero fscks about what you think, Carl.

  3. He wants to raise the price of APPL shares so he can sell out at a tidy profit. Obviously giving advice in his own self interest rather than for Apple’s betterment.

  4. As I have said before, beware of the presence of Carl Icahn. At some point he will make his move and the results will rip the faces off of AAPL investors who are not prepared. He is an asshole of magnificent proportions. He is evil personified. He is the riptide that pulls that unsuspecting inexperienced swimmer under, never to be seen again. Be ready because fair or not, that day is coming.

  5. Like him or not, Ichan is correct. Apple have outgrown this Board. Tim Cook has done a great job on the operational side but needs more support on the corporate side. Apple is a public company not a private company and shareholders should benefit from the firm’s success. By any stretch Apple does not need a cash pile of $150Bn plus to invest and retain a margin of safety. The share price has been to hell and back and the Board should have anticipated this. It would have been very easy to support the price with buybacks and that should have happened much earlier. Some posters seem to forget that any buybacks, dividends etc will help ALL shareholders not just Ichan. The Board need some corporate heavyweights who can take some of the pressure off Tim Cook who has been very unfairly pilloried and still is in some quarters. He has secured China Mobile and DoCoMo too. IMHO will will see how good he is over the next few years as he spends more concentrating on developing a vertical supply chain (read Semiconductors) and improving margins. We will also see new products this year (bigger screens) and next (iWatch) and new services too (payments). The only reason for keeping the cash would be to start Apple Bank – I’ll be the first customer.

    1. i think they key word in “to hell and back” is “back” – (well nearly anyhow).

      relax, smoke a reefer and go watch an old episode of mork and mindy, or maybe bewitched with dr. bombay making an appearance.

      it will take your mind off of such concerns

      besides i like that 150 billion set aside. they might need it to battle the federal gubmint in its constant overreach.

    2. It’s painfully obvious that Apple needs it’s cash hoard to remain in control of its path. Not having the cash to fund operations would leave it beholden to the parasites that Icahn represents.

    3. “shareholders should benefit from the firm’s success”
      They have. I bought AAPL at $10/share.
      Each year I get dividends that more than equal what I paid for the stock.
      iChan read the article about the wealthiest 80 people in the world having half the worlds wealth. All he want is to be on the list.
      Steve Jobs said the game was not to be the richest person in the cemetery. Seems like iCahn disagrees!

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