Take Two (TTWO) Buys Back 12 Million Shares of Their Stock From Carl Icahn

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Carl Icahn Sells His Entire Take Two (TTWO) Stake Back to the Company

Take Two Interactive (TTWO) announced this morning that they would be repurchasing 12 million shares of their stock from the Icahn Group for $203.5 million. The move ends Icahn’s relationship with the company after an 81% return on his investment in TTWO. Three directors whom were placed on the board by the Icahn Group announced that they would be stepping down as per the buyback agreement. The 12 million shares bought back represent nearly 14% of the outstanding shares of Take Two stock as of yesterday’s close. Shares are down 4% currently today, however I view this news as being quite bullish and believe it shows that management also feels TTWO shares are being significantly undervalued at present levels. The repurchase was done outside of their existing buyback plan announced in February of this year that authorizes the company to repurchase an additional 7.5 million shares of stock. I currently view TTWO as a strong buy.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

Icahn Sees Apple (AAPL) Shares Worth $1250 In 3 Years

Icahn Reiterates Call For Immediate $150 Billion Buyback From Apple (AAPL)

As promised yesterday, Carl Icahn launched Shareholders’ Square Table with a mission statement reading…

The Shareholders’ Square Table (SST) is a platform from which we can unite and fight for our rights as shareholders and steer towards the goal of real corporate democracy.

As a member of SST, you’ll receive emails with timely information on the movement, and have full access to our website containing:

  • In depth reports about activism and various companies we are involved in
  • Insights on business
  • Commentary and criticism of certain actions by boards and CEOs
  • ‘No-brainers’ and ‘Absurdities’

Most importantly, our periodic posts will discuss what can be done to change our current, dysfunctional system of corporate governance. 

While there are many good CEOs and boards there are far too many ineffectual ones that are strangling shareholders and the economy.

In addition to posts discussing poison pills and executive compensation, Icahn posted his full letter to Tim Cook, CEO of Apple (AAPL). The overall tone was very supportive of Apple’s current business operations, management team, and plans for the future. He discloses that he has increased his stake in AAPL to 4.7 million shares, or about $2.5 billion at current levels. His sole criticism of Apple concerns the speed and size of their current buyback plan, given the availability of cheap money to finance a more sizable and swifter plan than is currently in place. He calls for an immediate tender offer for $150 billion worth of stock. Icahn makes it clear that he believes AAPL shares are vastly undervalued, stating he sees the stock reaching $1250 within 3 years should Apple undertake his proposed plan, basing his price target on an instant 33% jump in earnings that would result from the buyback and more a more normal EBIT multiple of 11x. Shares of AAPL are up just under 1% on the day.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

Carl Icahn Ramps Up the Pressure on Apple (AAPL)

Carl Icahn Sends Letter to Apple (AAPL)

Just a day after debuting the new ipad Air and next installment of iPad Mini, Carl Icahn is looking to turn up the pressure on Apple (AAPL) some more. Earlier in the year it was announced that Icahn had acquired over $1 billion worth of AAPL stock and wanted the company to allocate $150 billion for a share repurchase. Apple’s current cash hoard is approximately $150 billion, a number that is up 10% in the past year despite spending heavily on share-repurchases under an already outlined buyback plan that Icahn wants increased. The full letter will be available tomorrow, I expect Carl Icahn will call for Apple to return even more money to shareholders than he was already seeking. The market didn’t react much following his tweet, as its been well documented that Icahn is seeking change from management, but historically having him involved is a good thing if you also own shares. His most recent huge score came yesterday when he cashed out half his Netflix (NFLX) position following a 457% gain, booking a profit of $850 million. Check Shareholders’ Square Table tomorrow for the full letter.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

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