This is a big deal, unless of course Uncle Carl has gone senile. Last I checked, he was still winning in HLF, however.
Nevertheless, Icahn exiting Apple, the world’s largest company, is the same as saying he’s getting out of tech. If big money managers are exiting tech, which constitutes 23% of the S&P 500, the market isn’t going higher from here.
If you enjoy the content at iBankCoin, please follow us on Twitter“We no longer have a position in Apple,” Icahn told CNBC. Icahn sold most of his remaining stake in February, he said. “I got out because I’m worried about China.”
Icahn perceives a risk in Apple’s relationship with China and that made his already profitable investment in the company no longer a “no-brainer,” he said. China shut down Apple’s iTunes Movies and iBooks services recently, showing that the company is no longer immune to the reach of Beijing regulators.
“You worry a little bit, and maybe more than a little, about China’s attitude,” Icahn said. Apple has a good relationship with China, providing vast employment there, but also relies on the country for lots of sales, he said.
“We have this huge profit so by definition it’s not the no-brainer it was — but two — if China was basically steady I would probably go back into” Apple, which he reiterated he viewed as a great company with great management. “I hope one day to get back into it.”
But he said this was going to $200…
fantasy buybacks will defend low 90s (major eyeroll) prediction rangebound (until 08 part 2 of course)
I just laugh at the thought of China shutting down iTunes Movies and Books. They have the Great Wall, the Great Firewall of China and probably other walls we don’t know exist. These walls were built to prevent things from getting in. Like freedom and made in America products. But ultimately these walls will fail and crumble to dust.
That over-hyped POS – APPL looking for single digits in 5 to 8 years. The RCA, Eastman Kodak, Mirant, Wham-O of the 21st century.-