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Jeff Gundlach stirs things up at the New York Yacht Club, the bond man telling a luncheon if he...

  • Thursday, April 26, 2012, 12:51 PM ET
    Jeff Gundlach stirs things up at the New York Yacht Club, the bond man telling a luncheon if he were master of the universe (isn't he?), he would be short Apple and long natural gas with 100X leverage (prev. on NG). On the Fed: There's no inflation only if you look at house prices and wages, and yesterday "added another dose of confusion" to the mix.
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This news story has 34 comments:

  •  
    Jeff just trying to get attention...isn't that what all money gatherers do??
    26 Apr 2012, 12:56 PM Reply Like
  •  
    Bingo. Saw this clown on CNBC, he's a self promoter. He's not someone you would want to pay for investing advice or investment management.
    26 Apr 2012, 04:07 PM Reply Like
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    Sounds like he understands the Fed just fine.
    26 Apr 2012, 12:59 PM Reply Like
  •  
    That is crazy. Maybe short AMZN and long nat gas. Apple is the cheapest stock in the universe. I'll take that short at $1,000 not $600.
    26 Apr 2012, 01:01 PM Reply Like
  •  
    I agree being long NG, but Apple? Long there too.
    26 Apr 2012, 01:23 PM Reply Like
  •  
    What does being master of the universe have to do with this proposed trade? What is stopping him? Come on, Mr. Gundlach, put up or shut up.
    26 Apr 2012, 01:24 PM Reply Like
  •  
    Great, another dumb ass.
    26 Apr 2012, 01:37 PM Reply Like
  •  
    Am old enough to learn that history repeats cycles. $1 NG comes to mind. Long term, NG will become the fuel for our energy independence. Check the rapidly growing list of conversions taking place. Demand and supply will come into price balance.
    26 Apr 2012, 01:37 PM Reply Like
  •  
    Agree wholeheartedly on natural gas. We have an abundance of it in the U.S. so we avoid the foreign-oil issue, it's cheaper than gasoline and diesel, it's cheaper and more easily transported than coal, and burns cleaner than both. It will eventually displace oil in transportation and electrical generation in time - one reason, I'm not too terribly concerned about the recent XOM miss.

    Not sure what he's thinking on AAPL, though. AAPL shorts are like playing with fire. It may be fun for a while, but inevitably you will be burned.
    26 Apr 2012, 01:47 PM Reply Like
  •  
    What a moron.

    There's a reason he's a "bond man" and not a stock or commodity guy.

    Don't quit your day job Jeff.
    26 Apr 2012, 02:29 PM Reply Like
  •  
    They are completing natural gas wells in southern oklahoma that are bring in close to 4,000,000 cu ft /day. Gas at $2.00/1000 cu ft is still nearly $3 million a year.
    26 Apr 2012, 02:39 PM Reply Like
  •  
    Apple still trades at less than 15X next years earnings..thats cheap for a growth stock. The problem is the analyst community..they have such lofty expectations and when Apple misses by a penny the stock falls out of bed. Apple has huge cash..120/share worth and generates huge cash flow. When was the last time an Apple store wasnt crowded? Look around you next time you are out for lunch and count the IPhones/Ipads...75% I would wager
    26 Apr 2012, 03:01 PM Reply Like
  •  
    aapl chart looks scary to me, i ll buy it back at $450-$500. Had to sell into that eps report. Not sure if they can top that type of number anytime soon
    26 Apr 2012, 03:01 PM Reply Like
  •  
    Current Apple to NG ratio is around 300.
    Fracking will keep NG around $2-$3.
    Apple will be $1,000 before NG hits $5.
    26 Apr 2012, 03:03 PM Reply Like
  •  
    betcha $1 you're wrong :-)
    26 Apr 2012, 06:06 PM Reply Like
  •  
    World natural gas supplies are only going to go up. In the US, oil companies will curtail drilling shale for gas but they will not curtail drilling shale for oil. They'll produce gas at a loss just to get at the oil.

    There are huge shale gas plays all over the world, don't be surprised if China, Poland, Argentina, and other countries are exporting natural gas by the end of this decade. I would not be long NG.

    As for Apple, who knows? Everybody is looking at their stock price and saying one thing, "This company can't be worth that much money."

    Before the stock price is going to go up substantially it needs to come out with some brand new overpriced doohickey that every Apple lemming wants to buy. I don't know what that is or if they'll do it but I sure wouldn't bet against them doing it either.
    26 Apr 2012, 03:03 PM Reply Like
  •  
    They don't have to be original now. they have such a head start, they can just milk it for the next 3-4 years and put another $150 Bil in the piggy bank.

    A 36" or 48" Ipad would do it. goes where your TV used to be. you use your iphone as a remote or a video game controller. the masses would go crazy over having one in the house. then you make a 150" one, put skype on it, and it's like you're captain kirk on star trek! Or maybe have one with a built in projector, so they can also make money selling you $300 projector light bulbs. One for the back seat of the family mini van, naturally. You'll know its time to sell when they make one to mount on a pedestal in front of your toilet.
    26 Apr 2012, 05:59 PM Reply Like
  •  
    Apple is one of the wonders of the world, and it belongs to the USA. We needed that. Nat gas is the other wonder, we are fortunate to have invented fracking to make it happen.
    26 Apr 2012, 03:21 PM Reply Like
  •  
    Some wonder that is. If I eat beans for dinner tonite, can I get $2 / Mcf for it?

    :-) :-) kidding! :-) :-)
    26 Apr 2012, 06:02 PM Reply Like
  •  
    Apple belongs to the USA? Their stuff is made in the far east and the cash is offshore too, waiting for a tax holiday.
    26 Apr 2012, 08:26 PM Reply Like
  •  
    If you can produce 2 mcf. I know some people that can (e.g. Jeff Gundlach)
    26 Apr 2012, 11:30 PM Reply Like
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    Belongs to the USA? What % of their products are made in the USA? 1%? Maybe 2%. If anything, China owns Apple. That's where Apple has all it's sweatshops that make its products. The only wonder Apple is, is I wonder how long it will take for the stock to drop 30%.
    27 Apr 2012, 12:33 AM Reply Like
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    Jeff Gundlach! As seen on TV!! CNBC!!! New York Yacht Club guest speaker and guru!!!!

    Look out, Jim Cramer!!!!!

    This is heavy stuff.

    Full disclosure: I was long NG a year ago and got the hell out before I lost my shirt.
    26 Apr 2012, 05:33 PM Reply Like
  •  
    Maybe if they get all those new fuel stations converted we can all start eating beans and get $2/Mcf; that being the new solution to get off foreign oil. However, there is still the environment concern (at least the smell). pete123, that was too funny !!!
    26 Apr 2012, 07:36 PM Reply Like
  •  
    Jeff is a smart man. Short Apple is the right move at this time. Maybe in a year it will be a good long againg, but I even doubt that.
    27 Apr 2012, 12:31 AM Reply Like
  •  
    Bond sleuths should stay out of equities.

    When the LTCM arbitrageurs started dabbling in equities in 1997, their downfall came brutally and swiftly.
    27 Apr 2012, 05:39 AM Reply Like
  •  
    I'm watching one [CNG Station] going up right now. It is going to happen. I'm an outsider looking in. Everyone I talk to, when I tell them how easy it is to convert their car, that in the meantime, you have home re-fueling systems so you can run bi-fuel until the infrastructure is completed, what it will do to the economy with all that extra money in our pockets not to mention the decimation it will do to the people who don't care too much for us that we keep buying from, ah, glorious days ahead for American energy. One obstacle. Obama.
    27 Apr 2012, 08:44 AM Reply Like
  •  
    Are the American people who love everything cheap willing to spend $6000 to convert their cars into CNG?
    28 Apr 2012, 07:54 PM Reply Like
  •  
    Kits are ~$1,000 + installation, definitely not 6k.

    Although your question still stands, rephrased, are they even willing to spend $1k?
    30 Apr 2012, 11:41 AM Reply Like
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    I cannot for the life of me figure why gas is so cheap and for such a long time. I'm loving it cuz my utility bills are a low as they've been for a long long time.

    I'm not an energy, and don't really follow any stocks; just the commodity prices for interest.

    If anyone could point me to a quick tutorial website, I'd certainly appreciate it.

    Thanks, Gary
    27 Apr 2012, 09:00 AM Reply Like
  •  
    NG goes lower in the short term <1year, but higher in the long run
    27 Apr 2012, 12:37 PM Reply Like
  •  
    I first met jeff gundlach and his team at Trust Co. of the West in 1992. Even then they had a terrific reputation as being the best money managers in the west. Since then, his reputation became the best bond manager next to Bill Gross at Pimco and some say even better. He left Trust Company of the West and in about a year or so raised $22Billion. He's done a great job so far. I'm long Jeff Gundlach.
    28 Apr 2012, 07:06 PM Reply Like
  •  
    @stockforyogis. With the price so low and with the incentives that were given to for the "Cash for Clunkers" program I think you would get a return on investment pretty quick. Especially if you drive as much as I do. The other thing is that it won't take millions to bring the price down, depending of separate tank size, [I'm still talking bi-fuel vehicles during the station conversion process] the prices will come down. Not to mention GM and a few others are going to build some vehicles for 2013 off the line. It's not a matter of IF this is going to be the transportation fuel. It's a matter of when. Depending on who the next president is will have a lot to say about how fast it gets implemented. Just my opinion.
    29 Apr 2012, 09:08 AM Reply Like
  •  
    Some time back the N.Y. Post said, "Hoisington Investment Management may be the best bond managers on the planet",
    I agreed then, and I still agree now. They were up 42% last year.
    They have averaged almost 10% a year return over the last 20
    years. In 42 1/2 years in the investment business they have been
    the best I have worked with. Check out their performance record
    by going to http://bit.ly/pN6I7V and read page 6 of their 1st.
    Quarterly Review and Outlook for 2012.
    1 May 2012, 11:03 AM Reply Like
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