NEW YORK (TheStreet) -- While U.S. stocks started off the week on a positive note, the CNBC "Fast Money" traders were focused on Apple (AAPL). The tech giant plans to raise $1.6 billion from a bond offering in Japan.
In the four times that Apple has tapped into the debt market, the stock has averaged a 19.4% gain over the next six months. However, investors shouldn't buy the stock for that reason alone, argued Karen Finerman, president of Metropolitan Capital Advisors. She likes Apple for its software services, like Apple Pay, and its capital return policies.
Tim Seymour, managing partner of Triogem Asset Management, agreed that the bond offering is not a catalyst to buy the stock. He pointed out that its first issuance of bonds came near the lows in the stock price, which likely makes the average return look much more attractive. He is long the stock and finds the valuation attractive.
While Apple has committed to rather large share repurchase plans and dividend payments, much of the company's $193 billion cash hoard sits offshore. Because of this, Apple must raise capital through bond issues, according to Dan Nathan, co-founder and editor of riskreversal.com.
If the company is unable to bring its overseas cash back to the U.S. without paying a steep repatriation tax, it could be an issue for Apple, he explained. With that caution aside, Nathan says investors can buy the stock at $110. The company will buyback its shares on any sizable pullback, which should give the stock support, he added.
Shares of Apple have been consolidating, but seem poised to move higher, said Guy Adami, managing director of stockmonster.com. He predicts the stock will rise to $155.
Sticking with tech, the traders turned their attention to Intel (INTC), after the company confirmed its $54 per share takeover of Altera (ALTR). The deal is worth nearly $17 billion, but Seymour says Altera will not be "terribly accretive" to Intel. Instead, Intel should have bought back its own stock.
Generally speaking, Seymour believes many large-cap tech stocks, which tend to have low valuations, should consider buying back more stock as well.