Doug Kass’ tip of the week: Short Apple

Let’s keep an eye on this, shall we?

Doug Kass runs a small hedge fund called Seabreeze Partners and a tip sheet with Jim Cramer called Real Money Pro.

He once worked for Ralph Nader, but he reminds me more of Donald Trump. Like Trump, Kass tweets a lot. Like Trump, he’s got a thin skin.

On Monday Kass tweeted to his 89,000 followers his recommended trade of the week: Short Apple at $99 a share.

“I view Apple as a ‘value trap’ that’s overowned and overvalued relative to its likely reduced earnings expectations,” he wrote on Monday’s Daily Diary. “I continue to believe that Apple won’t eclipse its fiscal-year 2015 earnings for several years.”

Two predictions: One short term, one somewhat longer. I want to keep an eye on both of them.

Click here if you want to try Kass and Cramer’s Real Money Pro FREE! for 14-days. How much does it cost after that? The site doesn’t say.

Real classy.

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3 Comments

  1. John Kirk said:

    There are two problems with options:

    1. They are a zero sum game. Money is transferred, but no money is created.

    2. They rely on volatility That has little or nothing to do with the underlying stock and Has more to do with rumors. Often unfounded rumors at that.

    4
    June 7, 2016
    • David Drinkwater said:

      You politely forgot to mention 3:

      3. They destroy value for investors who actually think. And plan. And buy to hold.

      0
      June 7, 2016

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