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

Apple Crashing, Gundlach's a Legend, Board Should Look at Cook

Stocks in this article: AAPL

NEW YORK ( TheStreet) -- Back in early November I agreed with market legend Jeff Gundlach's long-term concern vis a vis Apple (AAPL). It's all here -- and timestamped -- in black and white: Apple Selloff About a Year Too Soon

That said, I did chide Gundlach for speaking too soon and, as I put it in If All We Can Do is Predict Apple's Demise, We Suck As a Society:

I can't speak for Gundlach, but, if I had to guess, I think my neighbor (though I live on the other side of the Santa Monica tracks from him) just wants to be the guy known for calling Apple's demise. And, if he's wrong, so be it -- he's still a billionaire. His audience will not remember. And he doesn't really give a rat's ear if they do.

I do not regret calling for moderation on Apple but, obviously, I misfired second-guessing Gundlach. The guy nailed it. I just did not agree with his timing. I was wrong.

With that said, I explored something this morning that few people, particularly those inside Apple and AAPL bulls, care to discuss: Has Tim Cook Become a Liability at Apple?

Apple sits at a classic psychological crossroads. Most of us, at some point or another, find ourselves stuck in the same type of conundrum.

Over the weekend, Bleacher Report founder Bryan Goldberg (who will join us in April, live from New York, on TheBeach Meets TheStreet slam-dunked a series of riffs on this phenomenon with respect to the changed world of journalism (via Pando Daily):

A lot of journalists view the Bleacher Report business with contempt. That's their prerogative. But their attitude is a disservice to their field, and their refusal to evolve will dig them into a deeper hole.

I saw the same thing take place in radio. An industry starts to change rapidly. The old guard disagrees with this change, it resists and, subsequently, gets left behind. Lots of otherwise fantastic people lose jobs and livelihoods because they cannot get over themselves and view the bigger picture. Stand up to and challenge the elephant in their room.

Something similar is going on at Apple right now.

Steve Jobs is gone. Yes. One of his final decisions might end up being one of his biggest mistakes -- leaving the CEO gig to Tim Cook. (Others, including the folks at MacDaily News, will say Jobs erred most in the way he handled his cancer treatment. Maybe so, but I just can't bring myself to go there.)

In any event, sticking with the decision to make Cook the guy and bring a decidedly different style to the Apple Oval Office is, in many ways, akin to old-guard journalists and radio people clawing and fighting to preserve a dead-and-gone model.

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 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

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