“There are many who wish to proclaim that tech giant Apple has suddenly lost its ability to innovate,” Richard Saintvilus writes for Forbes. “Really?”
“Well, take it from this investors, I can most certainly tell you that is not the case,” Saintvilus writes. “Instead, the reason for the recent selloff has had less to do with Apple and everything to do with taxes, or more specifically, the fiscal cliff. More to the point, investors want to be a few steps ahead of the tax man, as opposed to the recent cries of manipulation or any other theory.”
“Everyone is looking for any exploitable route in order to preserve more of their capital. It seems like a good idea. But is it?” Saintvilus writes. “In theory, yes. But I just don’t see how this benefits companies or investors in the long run. Why would anyone want to divest themselves from a winner like Apple merely for taxes purposes? On the other hand it’s hard to blame investors for doing so. As I’ve said recently, this is a mess that our government has created by making something more expensive, in this case cash.”
Saintvilus writes, “[AAPL] investors have gotten better at running from higher tax payments. Hopefully, for their sake, they are not also running away from long term profits.”
Read more in the full article here.
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Analyst: Apple’s stock price reflects ‘fantastically pessimistic assumptions’ – December 8, 2012