“That positioning contemplates new tax policies,” DeMuth Jr. writes. “Einhorn is long Apple in part because the company could gain from tax reform and new policies around tax-efficient repatriation of foreign cash, of which Apple has a boatload.”
“They have over $200 billion of such offshore cash that could return to the US during the Trump administration,” DeMuth Jr. writes. “Apple’s accrual of a 25% GAAP tax rate is high among its peers, so a corporate tax cut would be a real benefit. Apple is one of Greenlight’s top five disclosed long positions.”
Read more in the full article here.
MacDailyNews Take: As Jim Cramer likes to say, “Own Apple, don’t trade it.”
Cramer: Here’s why I don’t say ‘sell, sell, sell Apple’ – September 2, 2016
Is Apple a good investment for dividend growth investors? – June 8, 2016