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Icahn: Apple shares sell at ‘half price’ value

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As a major Apple shareholder, Carl Icahn thinks his stock in the iPhone maker should have more iValue. Icahn, who owns 53 million shares in Apple on Thursday fired off a note to Apple CEO Tim Cook.

He said Apple should buy back more of its own stock. Furthermore he added, Apple is an undervalued company that should repurchase even more of its shares before the market catches up. Apple shares, which closed at $100.80 on Wednesday, should be worth $203 based on projected earnings, Icahn said in the letter posted on his website.

Icahn said he believes there is “a massive undervaluation” that “will not last for long.”

He further said:

It is truly a watershed moment, with Apple poised to take market share from Google (Android) in the premium device market as iPhone 6 becomes Apple’s flagship device among a growing collection of products and services that work together to form an increasingly dominant mobile ecosystem.

“Icahn has laid it all out, and it would be easy to see how it works,” says Colin Gillis, an analyst at BGC Partners.

Last year, Icahn urged Cook to buy back up to $150 billion worth of the stock, and Cook has said that the company plans to buy up to $100 billion worth by the end of next year.

Senior Writer

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