Apple Warrior Einhorn Finally Gets Some Support
David Einhorn has not received much support — at least not publicly — from fellow Apple (NASDAQ:AAPL) shareholders or other hedge fund managers in his battle against the company. But it appears one former investor who got bitten by Apple’s fall in the last quarter of last year approves of the Greenlight Capital manager’s ideas.
Whitney Tilson, who announced earlier this month that he had removed Apple from his portfolio after losing money on it last year, said on Friday that he was fully in support of Einhorn’s preferred stock suggestion.
Einhorn had suggested on a conference call on Thursday that Apple use $47 billion of its massive cash holdings to issue preferred stock with a quarterly dividend of 50 cents indefinitely.
“I think iPrefs are a brilliant idea that uniquely works for Apple, given its enormous pile of cash (“that exceeds the market capitalization of all but 17 companies in the S&P 500” – incredible!), huge cash flows, yet depressed multiple,” Tilson said.
Tilson, who manages Kase Capital, also agreed with Einhorn’s asseriotn that Apple shareholders would see a benefit of $61 a share more under this plan than with other ways of returning cash…