Paul Schatz: Apple is Going Down, Down, Down

While the recent pessimism surrounding Apple (NASDAQ:AAPL) shares seems to have blown over, the stock is still 23 percent below its record high reached in September. Bullish analysts have tried their best to ease concerns about the company’s long-term prospects, but there are some who refuse to believe in a continued growth story for the company. Paul Schatz, president of investment firm Heritage Capital, is one of them, and he thinks Apple may be in the middle of a multi-year decline that will see its shares fall between 50 and 70 percent from their current value.

Why Does Schatz Hold a Negative View on Apple?

“If you’re a trader, I think Apple has some upside left in it,” Schatz told Yahoo Finance in an interview. “But what we saw in that twenty-plus [percent] decline was just the first leg down of a multi-year decline, which I think ends up knocking 50 to 70 percent off the stock.”

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The investment specialist won’t even be convinced by a special dividend, if Apple were to announce one this month like some other companies, such as Costco Wholesale (NASDAQ:COST), have done ahead of the impending fiscal cliff. In fact, such an announcement, leading to a potential pop, would be a “bell-ringing” opportunity to sell while the stock was strong.