Don’t sell your Apple stock now — here’s why

“Carl Icahn must feel a tad sheepish these days. The super investor announced on April 28, 2016 that he was dumping his entire stake in Apple because of concerns that the company’s sales were in a long-term slump,” John Persinos writes for TheStreet. “Since then, Apple shares have jumped more than 30%.. The tech giant on Tuesday reported robust fiscal first-quarter operating results that beat analysts’ expectations and rocketed shares higher. Apple stock Wednesday jumped 6.1%, its largest one-day gain in six months.”

You might be tempted to sell, but “Apple still is home to scores of innovative engineers and marketers. The company’s pipeline is jammed full of new products awaiting launch, including the iPhone 8. Another unexpected tailwind: the policies of Donald Trump,” Persinos writes. “Trump plans to offset the pain of trade restrictions by granting corporations significant tax cuts and by allowing cash hoards repatriated from overseas to get taxed domestically at a reduced rate. That would be a boon for Silicon Valley technology giants that are hoarding a lot of cash overseas, prompting them to launch a wave of acquisitions. This activity would in turn stimuldate innovation and profits.

“Apple is sitting on $246 billion in cash, almost all of it parked overseas to avoid higher tax rates in the U.S.,” Persinos writes. “Trump’s tax repatriation plan would invigorate Apple like a shot of steroids.”

Read more in the full article here.

MacDailyNews Take: Apple on steroids? Apple’s would-be rivals just collectively pooped their pants.

SEE ALSO:
What’s the real reason why Carl Icahn dumped his stake in Apple? – May 2, 2016
Why Carl Icahn is wrong about Apple and China – April 29, 2016
Carl Icahn out of Apple over worries about China’s ‘dictatorship’ government – April 29, 2016
Carl Icahn dumps all of his Apple shares; stock drops – April 28, 2016

19 Comments

  1. Let’s face it, Apple is already one of the most difficult to manage operations around. I can’t see how it could possibly branch out in more ways because there’s more cash laying around to spend.

    I’m quite sure money hasn’t been a problem for Apple for at least the past 5 years, finding great talent and harnessing it on the other hand is where the real work is, and that can’t be accelerated by simply throwing more money at it.

        1. The Trump Admistration Commisars have announced that an agreement as been reached to adopt ‘Merican as the official language for US communications, rather than German, which was the other sentimentally considered possibilty.

          As part of the negotiations, His Majesty’s Government conceded that ‘Merican spelling had some room for improvement, and was too close to English, and has accepted a five-year phased plan for what will be known as Trumplish (Trump for short). In the first year, “s’ will be used instead of the soft “c”. Sertainly sivil servants will resieve this news with joy. Also, the hard “c” will be replaced with “k”. Not only will this klear up konfusion, but keyboards kan have one less letter.

          There will be growing publik enthusiasm in the sekond year, trust me, when the troublesome “ph” will be replaced by “f”. This will make words like “fotograf’ 20 per sent shorter. In the third year, publik akseptanse of the new spelling kan be expekted to reach the stage where more komplikated changes are possible. Favorable hovernments will enkourage the removal of double letters, which have always ben a deterent to akurate speling.

          Also, al wil agre that the horible mes of silent “e”s in the languag is disgrasful, and they would go. By the fourth year, peopl wil be reseptiv to steps such as replasing “th” by z” and “w” by v. During ze fifz year ze unesesary “o” kan be dropd from vords kontaining “ou’, and similar changes vud of kors be aplid to ozer kombinations of leters. After zis fifz yer, ve vil hav a reli sensibl riten styl.

          Zer vil be no mor trubls or difikultis and evrivun vil find it ezi tu understand ech ozer. Ze drem vil finali kum tru.

  2. But steroids are bad in the end, can kill you without prior notice. I know, Persinos is only using a figure of expression of what it would be like after the repatriation but, we want to have Apple more like ‘the strong guy that’s not on steroids’.

    1. It is well known that taking steroids will eventually shrink your Trump and make you impotent.
      .
      .
      (Trump thinks that word is actually pronounced – “important”)

  3. We sold 25% of our AAPL holdings at a near historic peak this week and are very comfortable with that. Apple will likely be a good blue-chip stock in the coming decade, but it just doesn’t look like a growth stock anymore. As long as Tim is at the helm, I just don’t see much innovation or exciting technology coming down the pipeline.

    Either way, we bough AAPL in the 90’s when no one else believed in them. Time to lock in some profit and we’ll see where the ship gets steered in the meantime.

  4. Don’t get suckered into putting too much money in a stock at record highs. About 40% of a stock’s price movement is from the overall market, a correction in the S&P 500 or Wilshire 5,000 would hurt Apple shareholders.

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