Doug Kass has hardly been an Apple (NASDAQ:AAPL) fan in the recent past, but the Seabreeze Partners president made a prediction on Tuesday that sent the iPhone maker’s stock bouncing up. Kass said Apple was likely to announce a stock split at Wednesday’s annual shareholders meeting, adding that he held long positions in the company.
“High above the Alps my Gnome is hearing a rumor that Apple will announce a stock split at tomorrow’s shareholder meeting,” Kass tweeted.
With Apple’s stock price refusing to budge back up from the more than 35 percent fall it has seen since making record highs in September, the company’s shareholding and capital allocation practices have been under a microscope. Much attention has also been given to its rather public argument with hedge-fund manager David Einhorn, who wants the company to start sharing more of its $137.1 billion cash holdings with investors.
Einhorn successfully managed to get Apple to remove a proposal from its meeting proxy that would have limited issuing preferred stock. However, he also wants the company to start issuing preferred stocks — the kind he wants give a perpetual yield of 50 cents per quarter.
That issue will certainly take some of the time at the meeting scheduled for 9 a.m. Pacific time at Apple’s Cupertino campus. While it’s not clear what, if anything, Apple has in store for shareholders at the meeting as far as capital allocation goes, several people believe the company can’t get away with doing nothing for too long anymore…