Longboard Asset Management asks Is Carl Icahn Buying the Wrong Stock?

Also see After Bold Tesla Call, Longboard Calls Microsoft The Next Apple

Carl Icahn: Apple Buyback Thesis

Carl Icahn is calling for a $150 Billion Apple Inc. (NASDAQ:AAPL) share buyback

  • Says buyback is a “no brainer”
  • Thinks Apple Inc. (NASDAQ:AAPL) board is doing a poor job
  • Believes the stock is undervalued

Carl Icahn Missing Something?!

  • We believe Apple Inc. (NASDAQ:AAPL) shareholders over the next 5 years would be far better off if Tim Cook ignored Mr. Icahn and instead bought $150 Billion of Microsoft

Apple Valuation Key Questions

  • Does Google Inc (NASDAQ:GOOG), Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930), Amazon.com, Inc. (NASDAQ:AMZN) & Microsoft Corporation (NASDAQ:MSFT) building their own Android OS devices help or hurt aggregate Apple Inc. (NASDAQ:AAPL) demand?
  • How vulnerable is iPad demand to more productive and innovative devices?
  • How attractive are higher produc3vity tablet devices which run both Windows +  Android to PC buyers?

Why is Tim Cook Afraid of Microsoft?

If the Apple Inc. (NASDAQ:AAPL) buyback is such a “no brainer”, why is Tim Cook so worried about Microsoft?

“Our competition is confused. They’re  turning tablets into PCs and PCs into tablets. Who knows what they’re going to do next?”

Tim Cook just dedicating his key note speech to talk about a competitor. If Microsoft Corporation (NASDAQ:MSFT) is confused and irrelevant, why is Apple Inc. (NASDAQ:AAPL)  spending so much 3me talking about the Windows 8 strategy during their own product launch?

Windows 8 Device Strategy

  • Microsoft Surface platform is a completely new category of tablet devices
  • Delivering the most productive and innova3ve compu3ng devices on the  planet
  • PC users want a unified new experience which delivers Android + Windows on  one device
  • Leveraging Android is the future of Microsoft Corporation (NASDAQ:MSFT) device strategy and Tim Cook knows that’s a  serious problem for Apple Inc. (NASDAQ:AAPL)

Apple Threats

  • Fickle Consumer Dependence
  • Hit product dependent
  • iOS gettinng flanked by Android
  • Dual Boot Windows + Android Devices become iPad category killer
  • Weakness in Enterprise
  • Microsoft Corporation (NASDAQ:MSFT) Mojo is Back

Is Carl Icahn Buying the Wrong Stock

Is Carl Icahn Buying the Wrong Stock.pdf by ValueWalk.com