Carl Icahn, perhaps the most successful investor of recent times, has sent out a new letter to Tim Cook. However, much of the information that is crucial for investors is either not in the letter or not clear in the letter, but came out in an excellent interview on CNBC. Here are the six key points that investors need to know.
Icahn moves the stock above the neckline
Apple’s AAPL presentation on iPads was disappointing. The stock started pulling back after the presentation. However, Carl Icahn came to the rescue. Icahn is a master of publicity. He first started with a tweet, and then he disclosed his letter to Tim Cook on his new web site called, shareholderssquaretable.com.
The key takeaway for investors is that Icahn’s activity has caused the stock to break above the neck line shown on the chart.
Please click here for an annotated chart.
The neckline was traced when Apple stock made a head-and-shoulders pattern before falling precipitously.
Further, the stock has moved to the top of the resistance zone shown on the chart, which shows a target of $590 to $615 if the stock breaks out from here.
Icahn has increased his position
Icahn has increased his position from 3,875,063 shares to 4,730,739 shares. This is an increase of 22%. However it is worth noting that Apple has 908.5 million shares outstanding, Icahn’s position is too minuscule to hold any weight…Read more at MarketWatch