Friday Apple Rumors: Einhorn Wants Apple to Issue ‘iPrefs’

by Christopher Freeburn | February 22, 2013 12:46 pm

Friday Apple Rumors: Einhorn Wants Apple to Issue ‘iPrefs’

daily apple rumors  300x180 Friday Apple Rumors: Einhorn Wants Apple to Issue 'iPrefs'[1]Here are your Apple rumors[2] and AAPL news items for today:

New Product: A hedge fund manager told Apple (NASDAQ:AAPL[3]) investors on Thursday that the company should release a special type of preferred shares to return surplus cash to shareholders,[4] AllThingsD notes. David Einhorn, whose Greenlight Capital, is suing Apple to block a shareholder vote on a proxy proposal to limit the issuance of preferred shares, says that the company should issues preferred shares that pay perpetual dividends. He┬ádubbed these shares iPrefs. Each iPref share would have a base value of $50 and pay a 50-cent dividend every quarter, in perpetuity. Einhorn described iPrefs as the “product Apple doesn’t know it needs.”

Impressions: Apple will release a cheaper iPhone and distribute more of its surplus cash to shareholders[5], AppleInsider notes. That forecast comes from Morgan Stanley (NYSE:MS[6]) analyst Katy Hubert who recently sat down with Apple’s CFO Peter Oppenheimer. Hubert said that she anticipates that Apple will increase the number of iPhone models it offers, including a lower priced “iPhone mini” to boost sales in emerging markets. Hubert also predicts that Apple will return as much as $28 billion to shareholders in 2013. That would mean a 6% yield on the company’s dividend, a big boost from the current 2.3% yield.

Crime Crusaders: Apple is partnering with the New York Police Department[7] to help unmask thieves, the New York Post notes. Crimes involving Apple devices have risen sharply in New York over the past few years — high enough that they pushed the city’s crime rate up last year, the first annual rise in more than a decade[8]. New York police officers are now asking people whose Apple devices are stolen to provide the International Mobile Station Equipment Identity number that accompanies each device. Those numbers are then turned over to Apple, which uses its servers to track the stolen device and reports its location back to police. The program has produced some notable successes, including the recovery of a stolen iPad that was tracked to the Dominican Republic.

For more about the company, check out our previous Apple Rumors[9] stories.

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/apple-rumors-stock-news/
  2. Apple rumors: http://investorplace.com/search/?q=Apple+Rumors&searchsubmit=Search
  3. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  4. special type of preferred shares to return surplus cash to shareholders,: http://allthingsd.com/20130221/einhorn-says-apples-next-product-should-be-iprefs/
  5. release a cheaper iPhone and distribute more of its surplus cash to shareholders: http://appleinsider.com/articles/13/02/22/morgan-stanley-expects-6-dividend-cheaper-iphone-mini-after-meeting-with-apple-cfo
  6. MS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MS
  7. partnering with the New York Police Department: http://www.nypost.com/p/news/local/nypd_apple_corps_PmTgzglhsHAGKoRFfsrDJI
  8. the first annual rise in more than a decade: http://investorplace.com/2012/12/wednesday-apple-rumors-new-ipad-coming-in-march/
  9. Apple Rumors: http://investorplace.com/2012/04/hot-topics/apple-rumors-stock-news/

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