Following Icahn’s massive new position in Apple (AAPL) — believed to be over $1 billion — and his comments that the company is ‘extremely undervalued’, today Omega Advisors’ Lee Cooperman told CNBC he agrees with Icahn’s analysis that Apple is cheap and that his firm has taken a modest position in the company.
Cooperman confirmed that he got back into AAPL when it was in the low $400s.
The news from Icahn and Cooperman resulted in Apple’s stock crossing $500 p/sh for the first time in seven months. Apple first printed the tape at $500 in February 13, 2012.
Scott Wapner reporting earlier on CNBC:
“Much is being made of Carl Icahn’s big new position in Apple, but from the filings we’ve learned that Lee Cooperman has taken a new position. He is back in Apple. I just got off the phone with him and he told me the following: he agrees with Carl Icahn that Apple is cheap, said they have a new modest position, said got back in the low $400s.
Lee Cooperman thinking that the new iPhone is going to create some buzz. When talking about the entire space he says he still thinks that Qualcomm is the best play in that overall space. But clearly making it known that he agrees with Carl Icahn that Apple is cheap in his words. They got back in in the low $400s and think the new iPhone which is expected on September 10th is going to create some buzz and you know Apple was right on the cusp of $500. We will see what happens here”.
Apple shares closed at $489.57 on Tuesday after trading intraday as high as $504.
In other Apple news ; in a telephone interview with Reuters, Icahn said he believes “Apple has the ability to do a $150 billion buyback now by borrowing funds at 3 percent”.
“If Apple does this now and earnings increase at only 10 percent, the stock – even keeping the same multiple currently – should trade at $700 a share….Apple has “huge borrowing power, little relative debt and trades at a low multiple,” Icahn said.
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