Trip Chowdhry Reiterates: Apple's CFO Has No Confidence
Global Equities Research’s Trip Chowdhry mentioned that he has “zero confidence” in Apple Inc. (NASDAQ: AAPL), and recommended replacing the current CEO and CFO.
CFO Sells Shares
Apple's CFO Luca Maestri has been selling shares of the company and is left with only 421 shares. On March 8, he sold 15,088 shares at $103.01 per share and on March 17, 18,241 shares were sold at $103.92 per share. This indicates that the CFO has “no confidence or patience to hold Apple Stock,” analyst Trip Chowdhry commented.
Borrow And Squander
Moreover, Apple has been borrowing and squandering money on dividends and buybacks. On July 21, 2015, Apple's Head of Retail Angela Ahrendts sold about 92,000 Apple shares, priced between $129.62 and $132.86, which marked the peak for Apple shares, Chowdhry pointed out.
“Investors wonder, what did Angela Ahrendts know that motivated her to offload such a large number of shares before Apple's Stock plummeted to mid¬90s…Investors feel it is time to end the "Borrow and Squander" perpetuated by Luca Maestri and Tim Cook,” the analyst wrote.
Replacing CEO, CFO
Investors believe that Tim Cook should return to his role in Operations, while Maestri should return to being a Principal Accountant. Apple should appoint Jon Rubinstein, the father of iPod and iMac, since the company needs a visionary and passionate CEO, and have Fred Anderson as CFO again, Chowdhry said.
Image credit: Andreas Kambanis, Flickr
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.