During Greenlight Capital Q1 2013 earnings call, CEO David Einhorn said his Company stands by Apple. Greenlight Capital biggest loss last quart was attributed to the poor performance of Apple stock.
Einhorn pointed to the high loyality amongst Apple fan and “terrific operating platform” as big advantages going forward.
Einhorn:
Our biggest loss in the first quarter came from Apple, which declined about 17%. The biggest problems for Apple investment are disappointing earnings and a diminished forecast. Our thesis remains that Apple has a terrific operating platform and is loyalty in growing customer base will make repeated purchases of a growing portfolio of Apple products.
Einhorn seem happy with the Company’s plan to reward investor and expects “blockbuster products” from the company.
Einhorn:
Apple took a major step forward by issuing debt and announcing it will return $100 billion to shareholders over the next three years. This is a vastly more shareholder firmly capital allocation policy, then where Apple stood a few months ago. We’ve added to our Apple position. Now, we just wait for the release of Apple’s next blockbuster product.
Earlier this year, Einhorn was involved in a big dispute with Apple’s hierarchy over capital returns to investors. At the time, Einhorn stated, “Apple is a phenomenal company filled with talented people creating iconic products that consumers around the world love. However, like many other shareholders, Greenlight is dissatisfied with Apple’s capital allocation strategy.” The lawsuit was later withdrawn.
Source: Seeking Alpha
