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With shares below $600, Apple (AAPL -1.4%) bear Doug Kass has decided to take a small trading...

With shares below $600, Apple (AAPL -1.4%) bear Doug Kass has decided to take a small trading long position. Kass thinks his concerns are now baked in, and expects Apple to hold its 200-day moving average of $588. Meanwhile, Apple's usual defenders on the Street continue praising its management overhaul (I, II): JPMorgan is relieved Jony Ive is sticking around, and RBC argues John Browett's removal was necessary in light of how he alienated retail workers. (earlier) Update: Kass says he sold half his long position at $601.
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Comments (15)
  • HarryWanger
    , contributor
    Comments (188) | Send Message
    I believe Mr. Kass closed that long at $601 this afternoon.
    31 Oct 2012, 06:18 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (1018) | Send Message
    Looks like he sold half his position. That was quick.

    31 Oct 2012, 06:35 PM Reply Like
    , contributor
    Comments (21) | Send Message
    Harry, how do you know?
    31 Oct 2012, 06:34 PM Reply Like
  • HarryWanger
    , contributor
    Comments (188) | Send Message
    Follow him on twitter.
    1 Nov 2012, 02:22 PM Reply Like
  • framur20f9
    , contributor
    Comments (11) | Send Message
    i subscribe to his letter and Kass indeed closed 50% of his position at 601 and the balance at 600. He is out now
    31 Oct 2012, 07:21 PM Reply Like
  • D.Rapp
    , contributor
    Comments (150) | Send Message
    Why do I care Dougie Cass was long AAPL? You might as well tell me Billy Bob Thorton is long AAPL. Actually, I think I would be more impressed if Billy Bob owned AAPL.
    31 Oct 2012, 07:56 PM Reply Like
  • William Rudder
    , contributor
    Comments (373) | Send Message
    Wow, a 2.2% win on AAPL! Nobody has ever done that before.
    31 Oct 2012, 08:29 PM Reply Like
  • merechino
    , contributor
    Comments (137) | Send Message
    Today is the deadline for fund managers to close out their books. See you tomorrow!
    31 Oct 2012, 09:07 PM Reply Like
  • ArmchairHero
    , contributor
    Comments (114) | Send Message
    Where's Andy Zaky? He's been pretty quiet lately.
    31 Oct 2012, 11:53 PM Reply Like
  • richbar
    , contributor
    Comments (921) | Send Message
    Armchair, it's because his absurd predictions are going to be exposed over the next few quarters. Apple could set new highs in the 700s next year but is probably going to fall back to about where it is now as earnings decline.
    1 Nov 2012, 09:52 AM Reply Like
  • jpintoctr
    , contributor
    Comments (556) | Send Message
    To much hype, lots of money in PR and advertisement from Microsoft, Nokia, samsung, etc. We are again in a time when the press and so call analysts are driving markets. I suggest to read "Irrational Exuberance" by Robert Shiller published at the end of the 90's forecasting the end of the dotcoms. Amazon high market valuation don't make any sense and the low price of Apple seem irrational.
    New products, brisk sales and a streamlined management ensure Apple's continue success. I don't know about Mr. Kass, I remain long
    1 Nov 2012, 12:08 AM Reply Like
  • bjnflicks
    , contributor
    Comments (4152) | Send Message
    There was little or no reason for the $100 drop to begin with, so I am confident that the next time this stock clsoes about $600 it will be the last time it ever sees the 500's again, and soon after that, the last time it sees the 600's. Apple is the most undervalued overly criticized stock in the world now, and for amazingly stupid and trivial reasons.
    1 Nov 2012, 12:56 AM Reply Like
  • richbar
    , contributor
    Comments (921) | Send Message
    There was a reason bjnflicks. Its earnings are peaking and will then decline. It could set new highs with the strong seasonal 1Q13 and 2Q13 earnings reports, but watch out after that.
    1 Nov 2012, 09:55 AM Reply Like
  • bobbobwhite
    , contributor
    Comments (2010) | Send Message
    Apple's firing of two major employees has been structured by the Wall Street media to overshadow something that requires more thought to see the much more important value in it. The second most valuable creative mind at Apple behind Steve Jobs has always been Jony Ive, and now, due to those firings, his role has been elevated to even more responsibility and clout. It is so odd but also so typical of the manipulative Wall Street press that I have not read one word about how much that will benefit Apple, but only a lot of meaningless baloney about losing two ineffective and, yes, harmful, players.


    Wall Street is purposely making it impossible for AAPL to seek its own level by WS's constant distortion of revenue and profit expectations far above what Apple itself anticipated. Why does anyone ever heed the B.S. WS pushes over what Apple itself says? That is THE main problem hurting AAPL, and certainly not Apple itself.
    1 Nov 2012, 10:53 AM Reply Like
  • Somporn Suksi
    , contributor
    Comments (125) | Send Message
    So Kass made $5/share (estimated) on a trade? He'd need to trade 10,000 shares (or $6mil notional) of AAPL to make 50k, which would be a 0.8% return on the $6mil. Sold too soon but to hold would have cast his "short" bias in doubt. Left money on the table in my opinion.
    1 Nov 2012, 03:48 PM Reply Like
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