Carl Icahn Talking Up Apple Again
Billionaire investor Carl Icahn expanded his position in Apple Wednesday, taking advantage of a post-iPhone event slide that dragged the company’s stock down more that 5 percent.
In an interview with CNBC, Icahn said he bought “quite a bit” of Apple stock today, describing his decision to do so as an easy one. “We look at the markets and look for no brainers and I think Apple is just a no brainer,” Icahn said. “… It’s just extremely cheap.”
Which is pretty much what Icahn has been saying for weeks now, ever since he announced via Twitter that he has taken a “large position” in Apple, and believes the company to be “extremely undervalued.” His theory: Apple’s stock could rise as high as $700 if it buys back shares now by borrowing $150 billion at a 3 percent interest rate to fund the purchase. “If Apple does this now and earnings increase at only 10 percent, the stock — even keeping the same multiple currently — should trade at $700 a share,” he said last month.