This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Best of Kass

Stocks in this article: AXPAAPL

NEW YORK ( TheStreet) -- Doug Kass of Seabreeze Partners is known for his accurate stock market calls and keen insights into the economy, which he shares with RealMoney Pro readers in his daily trading diary.

Among his posts this past week, Kass explained why he remains bearish on American Express, outlined the challenges that Apple faces and discussed the current struggle between inert fiscal policy and expansive monetary policy.

Please click here for information about subscribing to RealMoney Pro.

> > Bull or Bear? Vote in Our Poll


Bearish on AmEx
Originally published on Friday, Oct. 12 at 3:20 p.m. EDT.

  • I continue to expect the company to disappoint, as European billings weigh down top and bottom line.
  • American Express (AXP) has traded (relative to other financials) as if the company will report a reasonably large miss in third quarter 2012.

    I continue to expect the company to disappoint, as European billings weigh down top and bottom line.

    At the time of publication, Kass was short AXP.


    More Fast Times at 'Fast Money' High
    Originally published on Tuesday, Oct. 9 at 1:21 p.m. EDT.

  • Apple has market issues, technical issues and company-specific issues.
  • Brad Hamilton (Judge Reinhold) : Why don't you get a job, Spicoli?
    Jeff Spicoli
    (Sean Penn) : What for?
    Brad Hamilton: You need money.
    Jeff Spicoli: All I need are some tasty waves, a cool buzz, and I'm fine.
    -- Fast Times at Ridgemont High

    Here is what I discussed on CNBC's "Fast Money Halftime Report" a few minutes ago.

    I was asked by Judge what's up with Apple (AAPL).

    I explained that the stock had market issues, technical issues and company-specific issues.

    Market Issues: Just when everyone got comfortable that the disconnect between weakening fundamentals and improving stock prices would continue -- in part based on the silly notion that the performance chase would buoy stocks and in part based on the blind belief that the global monetary easing put would trump the challenge to earnings -- investors became concerned as stock prices began to decline. Last week, despite the market's rally, breadth was poor and volume virtually nonexistent, except when provided by high-frequency traders who filled the volume gap a bit with their own financial weapons of mass destruction (those damn algorithms!).

    Technical Issues: When Apple's shares sat at $700 a few weeks ago, up by nearly 70% for the year and vulnerable to profit-taking, it became an institutional source of funds.

    Company-Specific Issues: In broad terms, innovation has a history of impacting every tech market. Ultimately, it results in product homogeneity and in the fullness of time degradation of profitability. Meanwhile, concerns have cropped up specifically at Apple. Its first-mover advantage seems to have narrowed or is in jeopardy, owing to supply chain issues and product quality issues. (Remember these factors become ever more problematic as the size of the company rises so dramatically.)

    1 of 2

    Select the service that is right for you!

    COMPARE ALL SERVICES
    Action Alerts PLUS
    Try it NOW

    Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

    David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

    Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV
    To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
    Submit an article to us!
    DOW 17,195.42 +221.11 1.30%
    S&P 500 0.00 -2.75 -0.14%
    NASDAQ 4,566.1380 +16.9120 0.37%

    Brokerage Partners

    Rates from Bankrate.com

    • Mortgage
    • Credit Cards
    • Auto

    Free Newsletters from TheStreet

    My Subscriptions:

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    Register for Newsletters
    Top Rated Stocks Top Rated Funds Top Rated ETFs