Investor sues Apple
With its annual meeting looming and its stock on the decline, Apple is facing a rebellion from an influential investor who wants the company to stop stockpiling cash and give it to shareholders instead.
Greenlight Capital said Thursday that it is suing Apple in a New York federal court over the company’s proposal to make it more difficult for it to issue preferred stock. David Einhorn, who heads the investment fund, said the proposal would close down one avenue for Apple to reward shareholders with more cash.
Preferred stock is designed primarily as a way for companies to deliver a fixed income to shareholders. It differs from common stock, which generally doesn’t promise a regular flow of income but rather is a wager on a company’s long-term growth.
Apple still is the world’s most valuable company, but its stock has lost 35 percent of its value since September, as it’s become obvious that its once-rapid growth has slowed down.
Strong Jan. sales
Sometimes, the devil is in the deals.
Americans shopped the winter-clearance racks in January, resulting in strong sales during the month for retailers. But spending is expected to slow as the deals dry up and as Americans begin to digest rising gas prices and a 2 percent payroll-tax hike that started in January.
Overall, 20 retailers reported Thursday that revenue at stores opened at least a year — an indicator of a store’s health — rose an average of 5.1 percent, according to the International Council of Shopping Centers. That’s above the trade group’s 3 percent estimate. It also marks the highest reading since last August when the figure was up 6 percent.
From wire reports