Kass on Apple: It’s a Trap!
It seems like investing in Apple (NASDAQ:AAPL) means committing yourself to a daily circus sideshow loosely orchestrated by analysts, pundits, and an often confused market. On any given day, based on any given trend or rumor, Apple is alternatively the stock to commit to or it’s a value trap with “no growth and profit margins that are way to high vis a vis the competition.”
Doug Kass, founder of Seabreeze Partners and provider of the quote above, is currently on the “trap” side of the fence. Speaking to CNBC, Kass said: “A year ago, Apple was selling a superior product and was charging a premium price. Now, they’re selling a less-than-superior product and still charging a premium price.”
For some context, Kass has been in and out of Apple several times over the past few years and is perhaps most widely recognized for recently holding a short position in the company. Now, in the wake of the most recent product announcement, Kass seems to think the stock is decidedly unattractive.