Doug Kass: Don’t Be Long-Term Apple Fools

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Play with Apple (NASDAQ:AAPL) for short-term trades, but don’t make it an investment, Seabreeze Partners’ Doug Kass suggested to investors while discussing the iPhone maker on CNBC’s Fast Money on Monday. There was no major catalyst on the horizon for Apple, Kass added.

What is Kass’ Opinion on Apple?

“Apple to me is a trading sardine, not an eating or investing sardine for the next few months,” Kass said. “There are no short-term, clear catalysts with the exception of large special dividend, but time is closing out for that. That would encourage me to buy for investment.”

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In October, Kass wrote an article that listed 10 reasons why he believed Apple had “lost its mojo.” While he attracted a lot of attention from Apple bulls undercutting his arguments, Kass stuck to his position. On CNBC on Monday, he added that he had bought Apple stock last week at $510 to $530 per share and sold it between $565 and $585 before reshorting. “Trade, don’t invest in Apple for the time being,” he said. “I don’t buy the generational low story.”

What’s to Blame?

Kass added that he did not believe Apple’s bad performance last week, when it fell 8.88 percent, was because of concerns related to the fiscal cliff, which will result in a rise on capital gains tax next year. Instead, the company’s performance was to blame.

“The bloom is off the rose,” he said. “The technicals have obviously reversed in addition to the fundamental concerns, and the chief fundamental concerns are that the company faces the challenge of delivering a high-quality product in massive quantities at attractive margins.”

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