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 the posts this past week were items about Apple and risks ahead.
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Sold Out of Apple
Originally published on Friday, April 11, at 10:32 a.m. EDT.
Going into today, I was down to tag ends on Apple (AAPL), and I just sold the balance of my stock this morning.
While I don't think there is much downside, I don't think there is much upside either.
The more I think about the stock, the more I suspect the shares will be range-bound ($475-$550), with no clear visible catalyst over the next few quarters. In other words, reward vs. risk is unfavorable, as there may be slightly more downside to upside to the share price.
Significantly, I don't expect a meaningful change in capital allocation policy either in the form of an increased dividend or in a meaningfully expanded share repurchase program.
Carl Icahn and others have pleaded for more aggressive capital redeployment, but that vision might be muted by a generally lackluster profit outlook. Neither the core computer nor the company's smartphone business segments have done anything new in terms of innovation over many quarters.
Moreover, when the market bottoms, I suspect there will be many more attractive investments.