David Einhorn Interview: David Einhorn Bloomberg Video Discussing Apple

David Einhorn Interview: David Einhorn, president at Greenlight Capital, has had a lot of interesting things to say about Apple Inc. (NASDAQ:AAPL) in the past. While you may not always agree with what Einhorn has to say, his advice is at least worth hearing out.

So, what is Einhorn saying about Apple Inc. (NASDAQ:AAPL) right now? Let’s get started by taking a quick peak at an article we published earlier today:

Billionaire Einhorn Urges Apple Inc. Shareholders To Oppose Company’s Proposal

Here is a brief excerpt to chew on:

“Greenlight Capital, Inc. (“Greenlight”), a value oriented, research-driven investment management firm, today announced that it is urging fellow shareholders of Apple Inc. (AAPL) (“Apple” or the “Company”) to oppose the Company’s attempt to amend its corporate charter.  Greenlight is voting AGAINST Proposal 2 in Apple’s proxy, which would eliminate preferred stock from Apple’s charter and thus restrict the Board’s ability to unlock the value on Apple’s balance sheet.  Greenlight is asking all shareholders to also vote AGAINST Proposal 2 at the upcoming Annual Meeting of Shareholders to be held on February 27, 2013.”

It does not matter if you agree or disagree with Einhorn, you should take a close look at what he has to say:

“We believe Apple must examine all of its options to unlock the growing value of its balance sheet for all shareholders. Over the past several months, we have had an ongoing dialogue with Apple regarding one option to do so, namely the creation of a new security, a perpetual preferred stock that would be distributed at no cost to Apple’s existing shareholders, and would provide an attractive, sustainable dividend while preserving Apple’s financial resources to pursue its business strategy.”

With all this in mind, it is time to move onto a recap of an interview with Einhorn on Bloomberg TV. In short, he discusses the “attractiveness to shareholders of Apple stock if the company pledged its entire cash holdings to a dividend.”

Here is the question from the interviewer that gets the interview started:

“If Apple were to take its $137 billion and special dividend it out to you and all the other Apple shareholders right now, it’s not going to happen but let’s say for the sake of argument it does, how attractive of a company would Apple be without the cash?”

Now for Einhorn’s answer:

“Oh, it would be very attractive because you would take out that from the share price and you would have about $300 and I don’t know where it is trading right now, $325 of stock value earning well over $40 per share and the PE would be less than eight times for a company that has got an incredible product portfolio.”

Do you agree with what David Einhorn has to say in this Bloomberg TV interview regarding Apple Inc. (NASDAQ:AAPL)? Share your thoughts in the comment section below.

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DISCLOSURE: I have no positions in any stock mentioned.

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