“Ever since President-Elect Donald Trump won the election, Jim Cramer has spoken with many investors who are confused on what to do with Apple’s stock,” Abigail Stevenson reports for CNBC. “Going into the election, Apple had a remarkable run. The stock immediately fell to $105 from $111 in the wake of Trump’s victory. It has since slowly climbed back up to $110.”
“‘People may be confused about what a Trump administration means for Apple, so let me dispel the confusion — the positives far outweigh the negatives,’ the ‘Mad Money’ host said,” Stevenson reports.
The negatives:
1. China
2. Trump’s crackdown on the issuance of skilled worker visas
3. Call for a boycott (Cramer doubts this would happen)
The positives:
1. Trump and the Republican Congress want a lower corporate tax rate. Since Apple’s U.S. tax rate is 30.5 percent, this could bring billions in savings.
2. Repatriation. If Trump and Congress create a tax holiday to allow American companies to bring cash in tax free, this would be huge positive for Apple and great for the U.S. if Apple reinvests that money or returns it to shareholders via a buyback or special dividend. ‘I think this tax holiday on the repatriation of foreign earnings is close to being a done deal,’ Cramer said.
Read more in the full article here.
MacDailyNews Take: This is the first we’ve heard talk of a “tax free” repatriation holiday. President-elect Trump’s tax plan calls for “repatriation of corporate profits held offshore at a one-time tax rate of 10 percent” along with lowering the business tax rate “from 35% to 15%, and eliminating the corporate alternative minimum tax.”