It should have been Tuesday. Carl Icahn is supposed to release a report on Apple Inc. (NASDAQ: AAPL) any day now, but as the company’s investors nervously engage in a slow sell-off there’s been no sign of the research piece just yet. In an April 28 message Mr. Icahn told the market to expect a report within two weeks. In the twelve trading days since making that comment shares have lost 5%.
There’s not all that much mystery about the general direction that Mr. Icahn will head with his report on Apple stock. The hedge fund manager and head of Icahn Enterprises LP (NASDAQ: IEP) is bullish on Apple. The new report will advise investors to buy into the company, and it may put an absurd price target on the firm.
Apple investors wait for Icahn
With the second quarter financials weeks in the past and the World Wide Developers Conference weeks in the future, Apple investors are looking for a catalyst to drive the stock. The lack of any prodding, from analysts or otherwise, has lead to a gradual sell-off that has gone against the grain of the wider market.
To see a list of high yielding CDs go here.
The S&P 500 (NYSE:.INX) has traded down just a fraction in the days since Carl Icahn tweeted about his Apple report. The company’s shares gained strongly right after Tim Cook and Luca Maestri revealed their report for the first three months of the year, but those gains have been crushed out of the stock in the more than two weeks since.
Mr. Icahn’s report is the only catalyst that investors have been promised, and they know it’s going to be a positive one. That makes waiting for the report, the specific content of which is entirely unknown, a hot topic among actively engaged Apple investors.
Icahn pumps Apple
In his Tweet on April 28 Mr. Icahn said he thought that the company was misunderstood and undervalued. Apple is, by far, the most widely followed stock on today’s market, and Tim Cook’s company is, again by a distance, the most valuable enterprise in America. That makes those statements difficult to believe, but titillating for investors unhappy with 2015’s 14% returns to date.
$AAPL is still undervalued and misunderstood. Expect to put out another in-depth report within two weeks.
— Carl Icahn (@Carl_C_Icahn) April 28, 2015
In his last report on Apple, Mr. Icahn said that the company’s stock was worth around $216 per share. That’s much higher than even the most optimistic of sell-side analysts. Brian White of Cantor Fitzgerald, widely regarded as the most bullish analyst right now, is looking for Apple shares to hit $195.
Icahn’s last report concentrated on the benefits that Apple gets from its tax structure and the ways in which other investors have been unable to read those numbers correctly.
This time around it’s not clear what the hedge funder will focus on, but it’s known that he sees Apple as a financial machine rather than a product maker, so the report will likely give insight into some of the more esoteric parts of the Apple business model.
Shares in Apple closed at $126.01 on Thursday and the shares were trading up in this morning’s premarket.