AAPL’s newest and most glorified shareholder, Mr. Carl Icahn, is silent today as the stock is getting absolutely pummeled. There are likely plenty of noobs who thought they could simply ride the coattails of Icahn’s investments to riches. After all, his NFLX stake has returned 100′s of percents for anyone who followed him. However, today is clear evidence of why you have to invest in a company for your own reasons. Whether it is a recommendation from a sleezy penny stock website like APS, a research note by a prominent research analyst, or a billionaire investor like Carl Icahn, you can never forgot that every individual has their own interests in a stock.
Remember that just as APS tells you how good things are when their pick is rising a 100% they do not tell you about the looming crash that is inevitable with penny stocks. The research analyst with a $700 price target on AAPL doesn’t tell you how much he’s being paid to to publish objective research reports on the company.
So I find it fitting, that nor does Carl Icahn warn you of the potential risks with AAPL. What might the share price do if the company fails to innovate their most important product (iphone)? What about if there isn’t an imminent deal with China Mobile? Mr. Icahn was not willing to tackle these crucially important questions, he was only willing to tell you about his belief that the company is undervalued and how he has a supposed dinner date with AAPL’s CEO Tim Cook.
So I’m asking you Mr. Icahn, where the hell are you today? Only two days ago you boasted to Scott Wapner on CNBC that your twitter followers are up 50 points on AAPL, which in it of itself was confusing. You first made mention of your AAPL position on August 13th when the stock was at $475. On the day of your conversation with Scott Wapner the stock was trading around $505. That’s only a 30 point move good sir (6.3% in % terms), or 40% less than what you claimed the move to have been. That’s not just an exaggeration or ball park number, its an outright lie. You cited a 10.5% return for your followers when really it was only 6.5%.
I’m not writing this article to belittle Icahn, but just requesting he do the right thing: be transparent and communicate your thoughts on AAPL right here, right now. You stepped into a complicated world by announcing your AAPL position on twitter. If the stock is rising then no one cares. However, the price is now below where you mentioned you bought your position. So technically, anyone who followed you into the trade at the time of your alert is now in the red. That, of course, is assuming they didn’t sell in the $500′s for 6.5% gains, but why the hell would they have when 2 days ago you were still talking about how undervalued it is and how it is a “no-brainer.”
Carl Icahn, you my friend have a social responsibility to the investing public to react to this dramatic move lower in the form of a public statement. I don’t care if you just repeat what you said 2 days ago to CNBC or just simply tweet “I’m buying” or “I’m holding tight.” The bottom line is you thrust yourself into the AAPL spotlight, and you can’t only stand in it when the price is rising.
Here is a link to the interview on CNBC from 9/9/13 in which Icahn talks about his followers being up 50 points:
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