Apple Inc. (NASDAQ: AAPL) is not yet at the point that it really wants to take David Einhorn too seriously. At a Goldman Sachs investor conference today, CEO Tim Cook called Einhorn’s idea creative. He also said that the idea of a preferred share issue a silly sideshow to be sued over.

Tim Cook went on to say that its position of being able to hold endless billions just in cash is a privilege to be in that position. Cook said that Apple can seriously consider returning additional capital back to its shareholders.

The company generated more than $20 billion alone in the last quarter, and it sounds as though the company is getting more toward returning more of that capital to its holders. Apple can boost its dividend or it can buy back common stock. Another approach is that Apple can do both.

Our take is that Apple still needs to capitulate and split its bloated share price so that investors will start buying the stock again rather than spending so much capital and efforts buying oer selling put and call options to get exposure.

Apple investors have so far not liked the news. Apple shares are down over $9.50 or 2% to $470 in early afternoon trading against a 52-week trading range of $435.00 to $705.07.