Paul Schatz: Apple is Going Down, Down, Down
According to Schatz, anyone with a lot of Apple stock would do well to either ease up on those holdings or use options protection. “If your thesis, like mine, is that long-term Apple is going to be sub-$500 or sub-$400 [a share], then you can’t get too greedy on the upside, because the upside is going to be fleeting,” Schatz said.
Is Schatz Really Talking About Apple?
Schatz will not even rule out a short position, though he admitted it would be tough with a company like Apple. “Not yet, but I think it’s close,” he said about the possibility of shorting Apple. “Whatever resolution we get with the fiscal cliff, whether it’s good or bad, it’s going to lead to problems with the economy, and Apple’s gonna take it on the chin.”
Schatz’s analysis hit Apple hard Wednesday with shares closing down over 6 percent.
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