Week Ending 10/04/13: $483.03 (+0.28) Oct 6, 2013 21:38:08 GMT -5
Post by prazan on Oct 6, 2013 21:38:08 GMT -5
Oct 6, 2013 7:01:44 GMT -5 @burgess said:Anyone want to guess why TC and Icahn will be having another meeting again in less than 3 weeks? (presumably after earnings).
Why would TC bother meeting with him again in just 3 weeks? What will have changed that would make a conversation between them any different?
All Icahn is interested in is buybacks.
Any change in buyback amount would be announced during an Earnings Report (if apple sticks to past behaviour). The next one is under 3 weeks away.
Why would TC bother meeting with Icahn again to discuss buybacks immediately after October Earnings if there was no significant developments announced?
This entire post is based on a single seemingly trivial tweet, but the timing mentioned in the tweet seems potentially telling to be a hint from TC that he will have something to talk about in 3 weeks.
I'm sure many will think I'm reading to much into this, but have a think yourself and ask why you would schedule a meeting for an investor three weeks after having one, especially an investor who has stated he has little to discuss about your business other than your cash management.
It's been 6 months since the biggest corporate share buyback in US history was announced. Apple management likely didn't expect the share price to have remained at such cheap levels, and so what better opportunity than to accelerate and increase the share buyback plan. I've yet to come across a single reason why this isn't a good idea.
I suspect that Mr. Cook couldn't talk with Mr. Icahn about Apple's plans regarding buybacks without violating rules regarding the handling of confidential information. He couldn't have told Mr. Icahn about any planned increases in buybacks, and he also couldn't have flatly stated that Apple wasn't going to increase its buybacks. He couldn't have divulged anything about future buybacks, because that isn't public information. It makes sense to meet after the earnings report because then Apple's plans for the coming quarter will be made public. They can then have a discussion on those plans without violating confidential information rules.