Trip Chowdhry: Investors Have 'Zero Confidence' In Apple's Management And Board

Shares of Apple rose during Monday's trading session with momentum carried over into Tuesday as various media reports and analysts suggested that iPhone 6s pre-orders are "white hot" worldwide.

In an e-mail to clients on Tuesday, Trip Chowdhry of Global Equities Research acknowledged that while Apple is setting itself up for a "strong" December quarter, investors have "zero confidence" in the company's management team and board of directors.

Apple's Fall

Chowdhry continued that Apple's stock has fallen from its all-time highs of $134.54 to around $115 billion, resulting in $110 billion in shareholder value being erased. While this is happening, the company's management has "done nothing" to address the "erosion" of shareholder value.

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Meanwhile, Apple's management and board authorized a "huge" share buyback program that "is not working" as enterprise value/operating income "continues to decline." In addition, the company has transformed itself from a zero-debt company into a "debt-laden" company with more than $50 billion in debt that was allocated towards the "ineffective" stock buyback.

Should Apple Repatriate?

Finally, Chowdhry suggested that it might make sense for Apple to pay $30 billion in taxes and repatriate all of its cash held overseas as "taking debt to fund buybacks is insane."

"Because of all the above, in-spite of Apple setting itself for a strong December Quarter, Investors have zero confidence in Apple's current Management and Board," Chowdhry concluded.

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