NEW YORK ( TheStreet) -- Was it a coincidence that hedge fund manager Carl Icahn announced his rather large position in Apple (AAPL - Get Report), right as the stock was attempting to tackle its 200-day moving average?
I think not.
Icahn seems to have been in the news more than any other fund manager this year. He has, yet again, made headlines when he told the financial world via Twitter that his firm currently has a "large position" in Apple. Bloomberg News has reported that the position is in excess of $1 billion.
We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come.— Carl Icahn (@Carl_C_Icahn) August 13, 2013Before Icahn's tweet at 2:21 p.m. EDT, Apple had been trading fairly well on the day, up roughly $8 per share, or 1.75%, give or take a few basis points. Within 4 minutes, at 2:25 p.m. EDT, shares of Apple had nearly tacked on another $10, ultimately closing at $489.57, up 4.75% on what turned out to be the best trading day for the stock this year. The tweet added about $10 billion in market cap. Before today, Apple had already rallied more than 10% in the past month, helped along by a fairly decent earnings report and positive guidance in July. Aiding in the more recent move is the upcoming September 10 event, which is when many are expecting to see the company's new smartphone. Again, it's no coincidence that Icahn chose Tuesday of all days to announce his presence. After all, sources have said that he's been accumulating the stock for the past four weeks now, meaning he could have made this announcement at many different points, both past and future. While they could be wrong, I would have to think that it was no accident that the stock closed 25 points above the 200-day moving average, typically seen as longer-term resistance. Icahn also noted that he had a conversation with the CEO Tim Cook, discussing a potential plan to boost the share buyback program. For those who are unaware, the repurchasing plan already stands at a mind-boggling $60 billion.