by Keith Fitz-Gerald | March 27, 2012 11:59 am
[1]I have a confession to make. I believe Apple (NASDAQ:AAPL[2]) is going to be the world’s first trillion-dollar company — yet I want to short the snot out of it. Am I being compulsive? Impulsive? Foolish?
Perhaps it is all three considering that Apple has risen more than 3,000% in the last 10 years, turning almost any attempt to go against the grain into a “widow maker” trade. I say almost because I am one of the lucky ones.
A few weeks ago I recommended put options on Apple, effectively shorting the stock. I’m not alone in my thinking. Uber investor Doug Kass, general partner of Seabreeze Partners Long/Short LP and Seabreeze Partners Long/Short Offshore LP, tweeted recently that he had covered “half his short” on Apple following the announcement of their dividend and buyback plan[3]. Given that the stock had run up to nearly $608 a share before the announcement, presumably Kass had banked some gains, too.
I haven’t spoken with Mr. Kass, so I can’t comment on his current thinking nor the specifics of his trade. However, here are my 7 reasons to short Apple:
Add it all up, and there is enough to make you go hmmm …
Of course, there is no doubt I will incur the wrath of Apple fans everywhere and armchair traders from here to Tibet.
Get over it, guys; please refrain from the snarky e-mails telling me I’m an idiot or out of touch or worse. I believe in Apple. I really do. What I am suggesting is simply the logic behind Apple as a trading opportunity for nimble, aggressive and like-minded market mavens.
Besides, if I am correct and Apple does trade lower in the weeks ahead, I’m going to be picking up shares as an investment.
I hope you will be buying, too.
Source URL: https://investorplace.com/2012/03/7-reasons-why-apple-is-the-short-of-a-lifetime-aapl-msft-rimm-int/
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