Doug Kass: Buy Apple

“Doug Kass may be popular as an Apple (AAPL) bear, but with the company’s stock in decline, the Seabreeze Partners analyst is ready to buy,” Aabha Rathee reports for Wall Street Cheat Street.

“Kass wrote in a research note in Real Money that Apple’s shares had taken in enough pessimism about the looming fiscal cliff and a low growth rate prediction to present a real buying opportunity,” Rathee reports. “‘A discounted dividend model implies that the future growth rate in profits at Apple will be only about 5 percent,’ Kass wrote. ‘This is too low — Apple’s share price decline has likely now overly discounted most (if not all) of my concerns.'”

Rathee reports, “The analyst added that he was also ‘less concerned’ about a global economic slowdown… According to Kass, the expectations of a ‘wow’ product from the company, such as a market-disrupting television set, have now almost evaporated for the time. ‘At current prices, the next ‘wow’ product has been discounted away, and the company’s completely refreshed product line (no mean feat in such a short time frame, and if supply comes in line, CEO Tim Cook’s main goal for 2013) should be plenty enough new stuff to once again propel earnings throughout 2013,’ he wrote.”

Read more in the full article here.

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


  1. Uh, “low growth”? Define that for me please. Last I checked, Apple was growing its revenue and earnings well above 20 percent each quarter. That would be a dream for almost any company, especially one as large as Apple.

    Methinks Wall Street sees Apple through the looking glass of Malice in Blunderland. A little reality would be nice.

  2. Manipulator. He engineered the fall from 700, Now is trying to engineer the rise back upto 700. Under direction from Crammer.

    Apple price should never have fallen in the first place. But as Crammer said….it is too easy to generate rumours by quoting his bogus “sources”. Rumours about “delays” rumours about iPhone “subsidies” at AT&T, roumours about Apple losing its “mojo” etc are all to easy to start.

    The SEC meanwhile just sits with its eyes shut.

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