Forbes – Greenlight Capital\u2019s David Einhorn is urging Apple shareholders to vote down a change to the company\u2019s charter that would allow it to stop issuing preferred stock.<\/p>\n
Investors would be able to repel the proposal at Apple\u2019s shareholder meeting at the end of February. Einhorn, who has invested in Apple since 2010, when shares fetched half today\u2019s price, has criticized Apple\u2019s capital allocation. The company retains a huge cash warchest and only recently began paying a dividend. \u201cApple has a cash problem. It acts like it\u2019s in a depression,\u201d Einhorn said on CNBC this morning. He likened the $430 billion company\u2019s mentality to the stinginess of his grandmother, a woman born in the Great Depression who acted so frugal that she would avoid leaving Einhorn a voicemail so she wouldn\u2019t pay for the call.<\/p>\n
\u201cWe believe Apple must examine all of its options to unlock the growing value of its balance sheet for all shareholders,\u201d Einhorn said earlier. \u201cOver 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\u2019s existing shareholders, and would provide an attractive, sustainable dividend while preserving Apple\u2019s financial resources to pursue its business strategy.\u201d<\/p>\n
Shares of Apple in pre-market trading added 0.6%.<\/p>\n