Stocks of Apple
Inc.(NASDAQ:AAPL) are trying to prepare a comeback after a troubled stretch
took them into bear market territory the previous month. The downturn was not
surprising to Paul Schatz, President of Heritage Capital. He has been calling
for a sell-off of Apple since April of last year when he had foreseen a drop of
30-50%.
Apple shares plunged as
low as $505 on an intraday basis in November. The stock has since recovered from
bear status, but sentiment is damaged anyway.
Schatz said in an
attached video that traders may still find something upside in Apple. However,
the 20+ percent drop seems to be the first leg down in a multi-year decline.
Schatz sees any pop as
a chance to sell a position. If anyone owns a lump sum of AAPL, Schatz thinks
that it is time to lighten up holdings or use some options protection.
Schatz says that if
anyone thinks that Apple is going to be sub-$500 or sub-$400 for each share,
then he cannot get too insatiable on the upside since the upside will be
fleeting.
Schatz is not ruling
out the option of Apple’s possibility of pulling off a short position.
He said that shorting
Apple may be close. Whatever resolution is made in favor of the fiscal cliff,
it is going to create problems with the economy and Apple will probably come to
power by force.
Not even a stock spilt
or a special dividend would be enough to transform Schatz into an Apple bull.
He thinks either case would result in an investor frenzy sending shares towering.
That would be a bell ringing chance to unload power.
Schatz does not believe
the persistent Apple growth story. He believes illogical enthusiasm has fueled
the 220% growth over the span of 5 years. He is looking for an exit plan, not
an entry one.
Phone manufacturers rise and fall. Look at Nokia, Motorola, RIM. It will happen to Apple, it will happen to Samsung. It will happen time and time again.
ReplyDeleteWow, a great attempt at drawing publicity to yourself. A $51 million book of business is hardly cause to give you such an authoritative soapbox. Of course I understand the type of branding you're doing. But let's be clear, it has nothing to do with Apple, but more about you trying to increase your book size by trying to capture the attention of potential investors, with unsubstantiated rhetoric, so that you can charge them 2% for uncompromising and thorough investment advice, all without ever getting in front of a CEO or likely picking up an annual report. Well done!
ReplyDeleteCalling for a sell of since last April eh? Boy was he crapping his pants for a year and a half. I wonder if he actually had a short on since then. I'm surprised he didn't jump off a building
ReplyDelete