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  "documentTitle": "Apple Inc. (AAPL)",
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  "authorName": "David Einhorn",
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  "presentationDate": "2013-02-21 00:00:00",
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  "notes": "The slide uses a pro forma analysis to argue for capital allocation changes at Apple.",
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      "text": "Lower Share Count Drives Accelerated Earnings Growth",
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      "text": "EPS accretion: 8%",
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      "text": "We think Apple shares would immediately re-rate by 10-20%, as the market would price in a lower share count and higher earnings in 2015. While the EPS accretion would lag the share reduction due to the higher tax rate, we would expect some multiple expansion on the fully taxed earnings in reaction to the more shareholder-friendly policy.",
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      "text": "We think that announcing a program of repurchasing stock with all future free cash flow would unlock value. It would signal a more shareholder-friendly capital allocation, faster earnings growth, and confidence in the business.",
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      "text": "We assume an immediate 17% stock price bump followed by 15% annual appreciation. For the purpose of calculating comparisons to other ideas, we estimate that this plan will immediately unlock about $75 per share with more to come.",
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      "text": "Calculating the value is harder, because it is sensitive to the share price assumption. Unless Apple's valuation expands dramatically – which would be a good problem – Apple should be able to buy back about 6% of its shares each year in this case.",
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      "text": "Large On-Going Share Repurchases\nLower Share Count Drives Accelerated Earnings Growth",
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