Apple Recap: Einhorn’s Plan, iWatch Patent, Hedge Fund Rejection
Apple (NASDAQ:AAPL) saw some positive action toward the end of the trading day on Thursday following David Einhorn’s conference call, but closed 0.62 percent down at $446.07. Here is a Cheat Sheet to the top stories around the stock on the day:
Einhorn Outlines Plan
David Einhorn says he has an easy and mutually acceptable fix for Apple to distribute more of its cash to shareholders, and he’s trying his best to convince the company’s other investors to believe in his plan. Einhorn organized a conference call on Thursday in an attempt to explain the reasons behind the lawsuit his Greenlight Capital fund has filed against Apple ahead of the company’s annual shareholders meeting on February 27.
During the call, the hedge fund manager recommended Apple start issuing preferred shares called iPrefs with a face value of $50 to each common stock-owning shareholder. Each iPref would pay off a $2 per share annual dividend and would be publicly traded, he explained. The Greenlight Capital founder said his proposed capital allocation strategy was “a win-win for everyone” involved… (Read more)