Thursday, February 7, 2013

David Einhorn wants a bite out of the Apple.

Tomorrow a northeastern is coming to town.One can feel it air and grey sky is sign of weather of sad souls we all become as we get old.Indeed,a storm is coming both in the weather and business,financial world for Mr.David Einhorn wants a bite out of the Apple.The Apple has been sweet fruit for investors,much money maybe too much and that's problem.For not that long ago survive of Apple was not question but had white knight of sorts-Mr.Steve Jobs.The once and future King Apple Steve Jobs,indeed,one two founders was booted out for grown ups but grown up lack imagination to ran a company of dreams.So Steve Jobs re-enters the flay and saves the day,but he doesn't in dividends,nor stock buy backs no it's all about product and marketing and cash.Oh yes,cash we all love cash,you know it's real money.But king is now dead and replaced by a Cook.And stock has began fall to earth so investor like Einhorn treat something to boost the stock,he suggest a perpetual preferred stock with dividend of 4 percent yield.Problem is as I see it,4 percent sounds good today but how in five years? You know inflation can appear and remember the late seventies and early eighties when the Prime rate was over 20 percent.And it could happen again Mr Einhorn seem to me a very young man with no sense of history-plus one shorts of late Green Mountain Coffee has double since the summer when it hit a low of 18 it's now 44.

No comments:

Post a Comment