Issuing debt to raise your stock price is like trying to lift yourself off the ground by your own ears... but screw that, it's $AAPL— Jeff Macke (@JeffMacke) April 30, 2013And...
Remember when Apple couldn't innovate? That was so $55 ago— Eric Jackson (@ericjackson) April 30, 2013Adding color to the Macke and Jackson tweets, here's why AAPL, via TheStreet's Chris Ciaccia, was up three percent Tuesday and nearly 11% over the last five days: Apple Sells $17B in Largest Debt Offering Ever Macke is 100% correct. And the great Canadian Jackson knows better. As if this jump in AAPL has anything to do with its ability to innovate. Absolutely no relationship exists between Apple's long-term prospects under Tim Cook and the recent bounce in its stock.
My article from Tuesday sums it up: Nobody can touch Apple today. It's a great company with great products that require iterations, not overhauls. There's nothing uncertain about Apple's present dominance; even as headline after headline misinterprets Samsung's apparent lead over iPhone. Remember, Apple executes a very different strategy than Samsung or Google ( GOOG). It's not about marketshare. And, if Tim Cook makes it about marketshare, Apple's really in trouble. It's bad enough that he's pulling out all the stops to satisfy the same people Steve Jobs viewed as pests. Not only did Cook capitulate to shareholder demands with the original dividend and buyback, he turned his nose to the Apple way twice as hard by taking out debt to finance an even bigger return of cash to investors.
We now live in a world where hedge fund managers call the shots at Apple in coordination with the CEO. Not good. This move wins Cooks some goodwill and, as Macke basically stated, artificially sends the stock higher. Tim Cook has done nothing to address the concerns that will dictate Apple's long-term fate. He inspires about as much confidence as the imprecise James Balsillie did back in the days of BlackBerry's ( BBRY) implosion. If you're trading this move in AAPL, fantastic. Just be careful. Trading burns lots of people. Don't confuse it with investing. And don't confuse AAPL with an investable stock. Questions about Apple's ability to innovate without Steve Jobs loom as large at $440 as they did at $385. Follow @rocco_thestreet -- Written by Rocco Pendola in Santa Monica, Calif.