3 of This Week’s Biggest Surprises in Tech: Apple Inc. (AAPL), Texas Instruments Incorporated (TXN), and More

Page 1 of 2

Say what you want about the tech sector, but it’s never boring. Any given week will keep tech investors flooded with product announcements, earnings surprises, and crazy strategy shifts that absolutely nobody saw coming.

These are three of the most shocking pieces of tech news this week.

Apple Inc. (NASDAQ:AAPL)1. iPrefs
Apple Inc. (NASDAQ:AAPL)
is sitting on a $137 billion pile of cash, and plenty of outsiders want to give the company some helpful advice on what to do with it. Hedge fund Greenlight Capital’s David Einhorn goes the extra mile.

Einhorn recently filed a federal lawsuit to stop Apple Inc. (NASDAQ:AAPL) from making it harder to issue preferred stock. This week, he held a press conference (!) to explain why this is a good idea. Not only that, but he also came up with a catchy new name for a pretty basic financial instrument.

His so-called iPrefs would be bite-sized preferred share companions to regular Apple Inc. (NASDAQ:AAPL) shares. They’d trade close to their $50 face value on the open market and would be tied to a perpetual 4% dividend yield.

This way, Apple investors could choose to buy regular shares for capital appreciation or iPrefs for a meaty yield. Income investors don’t have to compromise their investments with share-price concerns, growth and value traders wouldn’t worry about a static and largely separate dividend-focused issue, and Apple Inc. (NASDAQ:AAPL) gets to offer bond-like investment vehicles that are actually equities, not debt. Everybody wins, and Einhorn expects the plan to boost Apple’s total value by $150 per common share.

The lawsuit looks like a smokescreen, more of a spotlight grabber than an actual business move. That iPrefs moniker only underscores just how media-friendly Einhorn is trying to be. That said, Einhorn had his day in court and shareholders won’t get to vote on Apple Inc. (NASDAQ:AAPL)’s blank-check preferred-stock policy this time.

I don’t expect Apple to adopt Einhorn’s iPrefs, but the media fireworks are pretty entertaining. Coining new terms for familiar concepts keeps English alive! Feel free to keep pushing Cupertino, Mr. Einhorn.

2. Hewlett-Packard Company (NYSE:HPQ) soars
Shares of computing veteran Hewlett-Packard soared to the tune of 16% on Friday thanks to a surprisingly strong earnings report. Color me shocked.

HP met Wall Street’s revenue targets and crushed earnings estimates. Mind you, the bar was set pretty low. Sales fell 6% year over year, and only the oft-forgotten financial-services arm delivered any growth at all. Earnings also shrank 11% despite CEO Meg Whitman’s best efforts at cost controls and synergy hunting.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!