This Day On The Street
Continue to site
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

5 Stocks the Smart Money Hates -- But Should You?

Apple

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

For the second quarter in a row, Apple ( AAPL) tops off the list of stocks that the smart money hates the most. Only, this past quarter, funds have been accelerating the selloff, unloading more than 2.8 million shares of the tech giant. That's a $1.5 billion stake reduction at share prices from the start of the first quarter. But those sells are misguided right now.

>>3 Big Tech Stocks to Trade (or Not)

Apple's reach stretches across a number of industries. The firm makes consumer electronics through its iPod, iPhone, iPad and Macintosh lines; it operates the most profitable retail stores in the industry; and it weighs in as the biggest music distributor in the world through iTunes. That scale is impressive; Apple's dominant position in so many different categories puts a big target on its back, and it makes attaining meaningful growth numbers a big challenge.

But there's value there. As I write, Apple currently carries approximately $145 billion in cash and investments, offset by a paltry $17 billion of debt (a tactic the firm is using to avoid a $9.2 billion tax bill from repatriating cash). In a nutshell, Apple has enough wherewithal to pay for a third of its market cap in cold hard cash -- and it's generating more and more every day.

Professional investors aren't immune from chasing performance, and with the conspicuous drop in AAPL since November, it's no surprise that they're under pressure to unload this stock. But with shares trading at a bargain valuation in May and technical strength finally coming back into shares, it looks like plenty of funds could bottom-tick Apple (on the wrong side of the trade). I wouldn't recommend being a seller here.
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LTD $0.00 0.00%
AAPL $113.29 0.00%
GLD $108.70 0.00%
VALE $4.83 0.00%
FB $91.01 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs