What’s Dan Loeb buying?  Apple shares

Apple Online Store“Dan Loeb’s Third Point is one of the most successful hedge funds of the past decade,” James Altucher reports for The Wall Street Journal.

“Loeb probably makes about a billion a year off the fees his fund generates,” Altucher reports. “By his picks we can see that he is turning bearish and… his biggest new position is AAPL”

“And why not buy AAPL? They are replacing (in the hands of one company) the entire music industry, movie industry, phone industry, computer industry,” Altucher reports. “50 [million] iPads will be sold over the next year, and on each iPad, people will buy 100s of songs, movies, and dozens of apps. The iPad is taking over computing.”

Full article, with more about what Loeb – and Warren Buffett and Carl Icahn are buying – here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

23 Comments

  1. “By his picks we can see that he is turning bearish and… his biggest new position is AAPL”

    Uh, shouldn’t he be turning bullish?

    Goes to show this is nothing but a cheap fluff piece as they obviously overlooked the essential editor in the process.

    Jesus…why do I come here?

  2. DD Traders will try to talk the shares down as much as possible and get in last minute to cash in on a historic record holoday earnings report in January…one of these days all these games will backfire big time on traders that have been getting away with these games – BIG TIME…

  3. @breeze

    Apple plays the game too, by purposely under estimating and then “blowing away expectations again!”

    It’s because Apple doesn’t pay a dividend, so they live on hype to drive the stock up.

    I last read it’s trading 20x earnings, so that’s a lot all speculation priced in the stock.

    Imagine if Apple has a poor holiday season?…could be that Dan Loeb is buying shorts on AAPL.

    Is Steve Jobs back in the hospital and we don’t know about it yet?

    Lots of insider trading being investigated with hedge funds lately.

  4. BofM, there are lots of things you can do to “turn bearish”. Stop being an @$$ about it. The point was that AAPL is the stand-out stock in their portfolio, the one that breaks the trend, the one they are still buying. This may be because they see AAPL as a stock that will hold even as the market plummets or as a stock that won’t lose as much as the rest … when the rest of the market plummets. One other possibility might be that they hope to make as much profit as possible while AAPL is growing to provide a softer, deeper cushion when it ALL goes south.
    As for “Jesus…why do I come here?”, yeah … I gotta wonder about that, too. Pro troll? Disruptor? Un(der?)-employed?

  5. Um, how does this ANAL-yst expect Apple to sell 50 million iPads next year when Apple is only making 3 million iPads per month? The most iPads Apple can sell is 36 million next year.

  6. BoMunchies wrote, “Apple plays the game too, by purposely under estimating and then “blowing away expectations again!”
    Utter tripe. When Oppenheimer is estimating over 40% growth from the previous year, you think that’s “purposely under estimating”?!? That’s only in your bizarroworld. Also, just because Oppenheimer guides conservatively, doesn’t mean any analyst has to do the same. The fact is, if Oppenheimer is CONSISTENT, then you can make a pretty good prediction based upon it.

    BoMunchies wrote, “It’s because Apple doesn’t pay a dividend, so they live on hype to drive the stock up.”
    Live on “hype”, whose hype? Please cite the Apple hype? If it’s not Apple hype, then it’s hype by others. And, you are contributing to it, because I’m sure people who know you consider you a contrarian indicator. They buy stuff you dislike.

    As for dividends, why should Apple pay one? Using your logic, would paying one, mean Apple will go up in price without hype? Illogical, will robinson, illogical!

    BoMunchies wrote, “I last read it’s trading 20x earnings, so that’s a lot all speculation priced in the stock.”

    Speculation?!? Are you nuts? Have you looked at Amazon’s PE lately? 68x ttm.

    The S&P500; is trading at about 18x earnings at the moment. Any price premium for the fastest growing stock in the S&P is trivial.

    Are you points always this lame, cause you’ll need to up your game if you plan on trolling here long.

  7. We all know hedge funds have been using aapl shares heavily. That’s one of the reasons the stock moves wildly.

    Still Apple’s fundamentals are brilliant. Virtually every product line is on fire and Apple have ramped up production on their hottest ones to cope with demand over the holiday period.

    Apple’s new low seems to be 300-310 now. Sooner or later it will jump up another 50 points. That’s the way the stock works. Big jump on news / broker hype, sell off to make brokers their money and a new trading base is set for the next round.

    If you’ve got stock stay in because this will keep going on until Apple start running out of ideas. If you can afford to gamble try to buy in on the lows (now) and sell once it jumps up.

  8. As for dividends, why should Apple pay one?

    Because it rewards long term investors who cushion the stock from wild swings, not speculators who will dump the stock wholesale if Steve winds up back in the hospital.

    If APPL takes a fall, it will be a mighty fall indeed. Perhaps Steve designed a no dividend structure to ensure he doesn’t get kicked out of the company like before? That those doing it would get a severe stock depreciation if they did?

    Not many might have known the dark years under various inept CEO’s Apple has had, but I do.

    Steve reminds me of that main character in the movie, the Devil Wears Pravda, to a absolute “T”

  9. @BoM,

    What a profoundly ignorant rant. Apple doesn’t benefit from stock prices once they have sold the stock initially, no company does, unless they are doing a buy back. So there is nothing gained by Apple “playing the game”.

    Apple doesn’t declare a dividend because Steve doesn’t give a damn about stock price or share holders. He wants to keep the money for running the company when times are tough or to make strategic investments in other companies or technologies.

    The 20 point P/E is actually lower than Apple’s rate in the not too distant past where it stayed at 26 for many years.

    These are all public facts, not prejudiced opinion.

    We are all guilty of mistaking our own ignorance and prejudice for the truth.

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