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Uncle Carl's Letter Boosting Apple Shares

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Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Apple Inc. (NASDAQ: AAPL) shares were trading higher by $1.50 at $130.27 in Monday's session. There is a familiar catalyst for the explosive move: Carl Icahn.

Icahn delivered on his promise to outline what the company should do with its horde of cash approaching $200 billion. In order for the company to meet his projected price target of $240, Icahn urges the company to shore up its "significantly" discounted multiple of 10.9x (current multiple of the S&P 500 index is $17.40).

See Also: Carl Icahn: Apple Shares Now Worth $240

In other words, force a "de facto" short squeeze to punish mutual and hedge funds that are underweight in their holdings. Icahn wants the company to significantly increase its already gargantuan share buyback plan.

From Carl's Lips To The Street's Ears

Apple is punishing the shorts in today's session. After its post-earnings tumble from its all-time high ($134.54) to its recent low ($123.36), it is attempting to post its first close above $130 since the earnings day close of $130.56.

The all-time closing high ($132.65) was made on the day prior to its earnings release as investors piled into the issue in anticipation of another strong report.

Posted-In: Carl Icahn Pre-market outlookTechnicals Intraday Update Movers Trading Ideas


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