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Carl Icahn Reveals over $1.5 Billion Stake in Apple, Inc. All the Big Boys must Disclose Today Aug 15th on SEC Form F13 Report ๐ŸŽ๐ŸŽ๐ŸŽ๐ŸŽ๐Ÿ˜Ž๐Ÿ˜Ž๐Ÿ˜Ž๐Ÿ’ฐ๐Ÿ’ฐ

August 14, 2013

Carl Icahn Reveals over $1.5 Billion Stake in Apple, Inc. With this really Big Boy stating that he is convinced that Apple’s shares are “extremely undervalued” the Market went Wild Monday, minutes after he “tweeted” at 2:21pm, several statements on his Twitter Account. Carl now has 51,369 Twitter Followers. Carl Icahn and All the Big Boys (investors holding $100 million or greater position) must Disclose on or before Aug 15th on SEC Form F13 Report. To avoid issues, my guess is Carl Icahn already filed his Form F13 Report just before sending his tweets and speaking with News sources Friday.

Those sitting on the sidelines are now saying, they know Apple was Good, and got off the sidelines and bought into the story. Assuming Carl has a $1.5 Billion invested in Apple, that computes to very-rough estimate of over 2,000,000 shares. Therefore, with Carl’s statement, which Jolted the Stock price up $20/share, from $470/share to around $490/share.

Investor Carl Icahn has grabbed a stake valued at over $1.5 billion in Apple Inc., AAPL, according to WSJ reports, believing that more cash should be falling from the tech giant’s branches.

Specifically, Mr. Icahn is pressing the company to buy back shares now. While Apple earlier this year announced a large buyback, Mr. Icahn said in an interview Tuesday that he wants to see it happen right away, near the current share price, which he considers cheap.

“This is a no-brainer to go buy stock in a company that can borrow” at a low rate, Mr. Icahn said in an interview. “Buy the company here and even without earnings growth, we think it ought to be worth $625,” he said, referring to the stock price, which closed Tuesday at $489.57, having risen 5% on the news of Mr. Icahn’s investment.

Carl Icahn Revelations. Some easy math, his two “tweets” beginning at 2:21pm Tuesday3, jumped his investment value by about $40 Million, ($20x2million). That’s a Wow. Aside from this “side-show” there are two important points with his statements.

Firstly, Carl has a major position in Apple which many did not know; and Secondly, Carl says he believes Apple’s shares at present values are very-undervalued. After all, many investors are largely in a “Follow Me” mentality, so when one of the very Big Steak Holders, makes a bold statement as Carl Icahn made today, it is noticed.

Carl Icahn, the billionaire activist investor who recently made millions with a bet on Netflix, tweeted on Tuesday that he has taken a large stake in Apple, a revelation that caused the stock to spike 4 percent higher in midday trading. “We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to (CEO) Tim Cook Today. More to come,” Icahn tweeted.

About four minutes later, Icahn tweeted: “Had a nice conversation with Tim Cook today. Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly.” Icahn, 77, joined Twitter on June 20th, 2013 and has 51,369 Twitter Followers. Shortly after Icahn’s two tweets were posted Tuesday, Apple stock jumped more than $20 a share to about $488. The stock, though, is down about 30% over the past 10 months. The power of Twitter is simple, having 51,369 followers and growing, the instant Carl types a 150 character message, a Tweet, and presses the Send Button, 51,369 iPhones and other smartphones chime with Carl’s Twitter message.

Icahn was reported by Bloomberg and FOX News, to now own a stake in Apple worth more than $1 billion, and cited an unnamed “person with knowledge of the purchases” in saying that Icahn had “accumulated the position over the past month.”

The U.S. Securities and Exchange Commission requires large investors to report their significant holdings on SEC Form 13F; However, the report deadline is 45 days following the quarter-end.

The deadline for major ($100 millon or greater steakholders) institutional investment managers and investment advisers to disclose their common stock holdings and put or call options (as of the end of the June, 2013 quarter), is August 15, must be submitted as on SEC Form 13F.

In February 15, 2013 a series of Form F13 reports (such as one by Aaron Pressman for Reuters) detailed institutional investors that had sold a portion of Apple shares, even though many of the largest Form F13 sellers continued to own vast holdings.

Previously Reported.

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š FORTUNE โ€“ In June Rolfe Winkler, writing for the Wall Street Journal’s MarketBeat, and posted an item called Big Apple, Bigger Google. I am not an Investment Banker; I could write Book on what I do Not Know about Investment Banking, nor what drives Investment Brokers with their clients.

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š Big Apple vs Bigger Google vs Amazing Amazon. We would rather rename the article, Big Apple vs Bigger Google vs Amazing Amazon, Really? Sooner or Later, the "Markets" will come to their senses, as in sum, its All About Earnings, Growth. When the Markets Smell the "stuff they are shoveling" these Graphs will Invert for Amazon and Google, with Apple at the Top.

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š Winkler had calculated that Google’s (GOOG) value had just surpassed Apple’s (AAPL). Not in market capitalization, mind you, (i.e., share price times number of outstanding shares), which is the way these thing are usually measured, but in enterprise value (market cap plus debt minus cash and cash equivalents).

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š You can think of enterprise value as what it would cost to acquire a company: The buyer would have to take on the company’s debt, but would pocket its cash.

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š Not being an Investment Banker, nor offering advice, and not having investments in Apple, Google nor Amazon, there are facts and truths that need to be aired.

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š Apple needs to deliver a larger Display iPhone, as millions of folks are buying 5" and 5.5" smartphones, and Apple clients want them too.

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š Amazon better gets its Business Model to the point in making profits quickly, before State Legislatures close the Sales-Tax Gap, that is presently giving Amazon an effective 6% to 8% marketing advantage from its "Brick and Mortar" retail stores, that have to charge sales tax to their customers.

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š Amazon ~ Wall Street Love Fest. Sooner or later "Wall Street" will digest that facts, that if Amazon fails to increase the Income side of its Business Model by say 7% simultaneously or before the Sales Tax loopholes are closed by State Legislatures, Amazon will have even Greater Losses.

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š Google is doing well in many categories of Earnings and Growth; However, Google has a fairly large problem with its Android Operating system. The Problem is the Android operating software has many patent-infringement issues with Microsoft, that are presently mitigated with fees paid to Microsoft the winner in many recent court cases; Samsung is likewise getting ready to dump Android, because of having to pay Microsoft all of the patent-infringement mitigation Fees, and the problems Samsung faces with the Android Fragmentation of its Operating System.

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š Nobody is about to buy either company, of course, but Winkler’s story generated some excitement โ€“ and flurry of copycat headlines โ€“ because it fit the dominant narrative on the Street that Apple is doomed.

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š Apple’s shares have bounced back a bit since Winkler posted that piece, and the company is once again more valuable than Google in pretty much every measure except sentiment on Wall Street (see the stock fever charts above).

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š "The Street sees Amazon as the world’s biggest (online) global retailer with almost limitless growth. [It] sees Apple as a (mobile) device maker that because it is wholly dependent on its ability to innovate nonstop, expand its (ultimately saturated) markets while fighting off competition and controlling its very unstable supply chain, has limited growth."

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š FORTUNE โ€“ In November, the last time we compared Apple’s (AAPL) and Amazon’s (AMZN) price-to-earnings ratios, the simplest and most widely used metric to gauge the relative value of a pair of stocks.

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š Apple’s trailing PE was 13 and Amazon’s was 2,767. We haven’t been able to repeat the exercise because while Apple PE has drifted with its stock price to between 10x and 11x, Amazon’s trailing PE has reached, as Buzz Lightyear might put it, infinity and beyond, (Or, as the stock charts politely have it, NA.)

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š Amazon, gets an NA, on its PE ratio, which reported its June earnings on Friday, hasn’t turned a profit, all Red Ink, for three quarters in a row. What does Wall Street react for this dismal performance, Wall Street rewarded Amazon by pushing its stock to an all-time-high of $312.01.

๐Ÿ™ˆ๐Ÿ™‰๐Ÿ™Š The Apple vs Google vs Amazon can best be told with Graphics. Reviewing these sets of statistics, which reflect actual results… However, the trading values are apparently based on the Company’s Performance by any standard.

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