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's buying shares of Apple and why some recent news from China is encouraging.
The Apple of My Buy
Originally published on Friday, Nov. 9 at 8:44 a.m. EDT.
- Global economic weakness in 2013 would likely have an adverse impact on Apple's relatively high-priced stable of products.
- Challenges of delivering a high-quality product in quantity.
- The risks associated with the loss of Steve Jobs were being underestimated by the markets.
- Investors may look beyond the recent new product offerings. The steady stream of "wow factor" products in the company's pipeline may be in jeopardy following the release of the iPhone 5 and of iPad mini.
- A changing competitive landscape could be a challenge to the company's market share and profitability.
- Apple's shares were overowned and were the beneficiary of fund flows. The almost religious belief in the company (on the part of individual and institutional investors) represented an extreme in investor sentiment.
- Apple's valuation, though inexpensive relative to the market and its projected growth rate, was very expensive (on a price-to-sales basis) relative to other hardware companies and on an absolute sales basis.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts