Doug Kass’ Trade of the Week: Short Apple

“I’m making a short of Apple my Trade of the Week this week at $99 a share,” Doug Kass writes for TheStreet. “My rationale to making an Apple short my Trade of the Week: Slowing smartphone sales and more competition. There are growing signs that the smartphone market is slowing. At the same time, the company faces much-lower-priced competitors given the iPhone’s $600 average price.”

MacDailyNews Take: Apple’s iPhones are unique, their so-called “competitiors'” phones are not.

“Longer upgrade cycle is a sign of product disappointment,” Kass writes. “Reports that Apple might extend iPhone upgrades from the current two years to three support my general belief that the last major product upgrade cycle for the iPhone has already occurred.”

MacDailyNews Take: We shall see.

“I continue to believe that Apple won’t eclipse its fiscal-year 2015 earnings for several years,” Kass writes. “In sum, I view Apple as a “value trap” that’s overowned and overvalued relative to its likely reduced earnings expectations.”

Read more in the full article here.

MacDailyNews Take: iCal’ed.

Doug Kass: Apple’s Tim Cook is no Steve Jobs – May 3, 2016
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
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

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


    1. “I’m making a short of Apple my Trade of the Week this week at $99 a share,” Doug Kass writes for TheStreet. “

      Apple stock is $99.17 pre market. What a visionary!

  1. Let’s see, did Mr. Kass say:
    “Apple has become a value trap,” the founder of Seabreeze Partners Management said. “This is a company with no growth, and profit margins that are way too high vis a vis the competition.”

    Oh, no, wait, that was in September 17, 2013, when Apple closed at 61.00 split adjusted. Coincidentally, Mr. Kass said this after AAPL had just gone down 10%.

    Mr. Kass has been saying this since 2009. He says it all the time. He trades dozens of Apple shares, sometimes. He makes dozens of dollars from his trades, sometimes. He makes a lot of money from CNBC for saying this, always.

    To understand a businessman you have to understand his revenue model. Mr. Kass does not have stock trading as a revenue model.

  2. The garbage he talks about. have been going around for months and months…
    And he is reacting to it months later??

    Damn we have a sharp, astute one here .

  3. I often disagree with Kass but overall he has had an uncanny track record shorting Apple stock. I have been a subscriber to his service Real Money Pro for 10+ years and I would say 90 percent of the time he has shorted Apple he has made money. Now shorting at $99. not sure how that will work out and he never sees the potential upside of Apple but I do respect his track record.

    1. Last January 27 Kass called the short on Apple, it closed at 93.42, and it moved up steadily for the next 2 and a half months to 112, and then only moved down to 90 before climbing again. Nervous Dougie is crying wolf again in the hopes of saving his shorts.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.