Quoted – Icahn Turns His Powers of Persuasion on Tim Cook – ECommerce Times

Image representing Apple as depicted in CrunchBase

Image via CrunchBase

Despite Carl Icahn‘s declarations that he’s interested only in what’s best for Apple’s investors, the self-proclaimed champion of “real corporate democracy” has his doubters.

Why add to Apple’s debt to pay for the buyback when it’s sitting on so much cash?

“A lot of the cash is overseas, and if you brought it back to the United States for a buyback, it would get taxed at a very high rate,” business professor Scott Testa told MacNewsWorld.

“Since it’s so cheap to borrow money, it makes no sense to bring the money back into the United States and get killed from a tax perspective,” he added.

http://www.ecommercetimes.com/story/Icahn-Turns-His-Powers-of-Persuasion-on-Tim-Cook-79268.html

Advertisements

Quoted – Icahn Scoops Up Apple Stock Post Product Launch Plummet

Image representing Apple as depicted in CrunchBase

Image via CrunchBase

Another short-term shock to Apple’s share price has been its inability to hammer out a deal for wider distribution of the iPhone in China.

“The No. 1 disappointment was there was no China Mobile deal, although I think that deal is coming,” business professor Scott Testa told MacNewsWorld.

The longer it takes for that deal to come, however, the more Apple’s share price may suffer.

5c No Cannibal

Wall Street was also disappointed with the price point for Apple’s developing world phone, the 5c, Testa noted. “It feels the handset business is a commoditized area that Apple should be super aggressive in and go after the low-end Android phones.”

http://www.macnewsworld.com/story/78952.html