Doug Kass: Apple stock to spend most of this year under $525

Buy index puts, sell index calls or purchase inverse ETFs because stocks, corporate profits and P/E multiples are going down says Real Money Contributor Doug Kass.

Those are just some of his surprises for 2014. He also says bonds will outperform stocks this year with the yield on the 10 year US Treasury note finishing between 2.5% and 3%.

As for individual stocks, Kass says investors should avoid or even short Apple shares as profit estimates for the tech giant are slashed.

I think [AAPL] is going to spend most of the year under $525 per share because profit estimates are again going to be shaved. – Doug Kass

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Direct link to video here.

MacDailyNews Take: What no talk of an Apple stock split this year?

Judging by the video and audio quality, Dougie’s suffering along with a crappy Windows PC. Get a Mac, Doug.

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

Related articles:
Doug Kass goes long with Apple Inc. stock – May 23, 2013
Doug Kass: I made a mistake on Apple – March 7, 2013
Doug Kass shows how easy it is to manipulate shares of Apple – February 27, 2013
Rotten rumors of impossible Apple stock split helps fund manager Kass clear profits – February 26, 2013
Can the U.S. SEC prosecute Doug Kass over Apple stock split rumor? – February 27, 2013
Doug Kass: Apple to announce stock split on Wednesday – February 26, 2013
Doug Kass: Apple ‘is dead’ – January 30, 2013
Doug Kass: Buy Apple – November 13, 2012
Doug Kass strikes again, citing Woz’s ‘Apple is so arrogant over iPhone 5′ complaint – October 12, 2012
Hedge-fund manager Doug Kass: Apple is losing its mojo – October 3, 2012

32 Comments

    1. It is much easier to make money shorting AAPL than buying it. Buy on Friday and sell on Monday works like magic. It is difficult to catch the shorts with their pants down because of the hugh float. You can’t keep the price up for more than 2 days!

      1. He was dissed, and he was right.

        No. Kass MANIPULATED.
        1) He forecast an entirely illogical and idiotic drop to $400.
        2) Such is the nature of the current Wall-Nut Street that the sheeple listened, sold their AAPL like good little cattle, and those betting on AAPL falling made out like pirates. ARR.

        AAPL remains at an entirely INANE low price, and this parasite is going to make damned sure it stays that way until he’s filled this portfolio, at which point he’ll cut the Apple Bear Bullshit and go all wonky bullish. Just watch. These dicks are well worth our dissing.

  1. The market is always seeking growth for growth sake . They just ignore the fact why rubbish companies can have growth . Why ? Rubbish A earns 0.01 cents in 2013 . BUT in 2014 it earns 1 dollars . How much does it Grow ? 1000 % . WOW!!! Then how much rubbish A rise ?
    Look at amazon ! Look at google !!

    All of their so-called growth is coz they earn much less than Apple .

    Why do they earn much less ? The reason is simple . They sell their products at crazily low margin and low margin gives big market shares .

    THAT IS THE FACT !!!!

    1. And why do they sell at low margin ? Coz they can’t beat Apple by quality and innovation!

      U may say Apple have margin concern , so the anal ists say .
      Why do others have NO margin concern ? COZ THEIR MARGIN IS SO FUXKING LOW SO IT WONT GO ANY FUXKING LOWER!!

  2. This stock is not being allowed to increase. The Big Boys are making too much money playing the short side, and so are the exchanges on the volume. The weekly manipulation of Apple prices by the Short Sellers and Options players completely control the price. The SEC could stop this, but they are in the pocket of the people they are supposed to regulate. Apple could stop it by splitting the stock to reduce the multiple. Shorts count on getting a large drop when they attack. They can easily run Apple down $5 a share or more. If the stock was split 10 for 1, they would get a 50 cent drop instead. The would need to go find another Stock to beat up.

    1. Right on the money. There was a Seeking Alpha post about this. Basically, there is a selloff every Friday and a rise every Monday. It’s like clockwork. It’s about those weekly options.

  3. Bears have been prowling ever since Bernake started his “quantitative easing” (i.e., the third bailout for the big banks). Now that the Fed has to unwind its toxic assets, the predictions of doom and gloom are everywhere.

    I don’t see the big deal. Nobody batted an eye when several trillion dollars, not to mention uncountable lives, were flushed down the toilet in the middle east for the last decade. All the money that the Fed handed out has been effectively transitioned to the coffers of the Fortune 500, so there’s no reason to expect stocks to plummet now. They’ll continue to be choppy as corporate leaders try to figure out ways to deploy their ill-gotten gains. I predict a period of massive corporate acquisition and mergers.

    … none of which has anything to do with Apple. AAPL valuation is locked into the valuation estimates of large fund holders, which sees Apple increasingly as a utility and less as a growth stock. Since Apple isn’t telling them otherwise, their (mis)perception becomes Wall Street reality.

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