'Fast Money' Recap: Is Apple's Japan Bond Offering the Right Move?

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.



Adami agreed, pointing out that over the past few quarters Altera has shown a decline in revenue, earnings per share and operating margins. 

The focus shifted to Chinese equities, which have been volatile in recent trading. On Monday alone, the Shanghai Composite climbed nearly 5% and is up a whopping 136% in the past 12-months.

However, noted short-seller Carson Block spoke cautiously of these stocks. Block, the founder of Muddy Waters Research, is known for sniffing out fraudulent Chinese companies and says that some companies are taking place in an enormous "pump and dump" scheme. 

He explained that these companies have their chairmen and their proxies ramp up trading in the final 10 to 30 minutes of the session, to generate gains and show that there is volume. Several of these companies will finally get added to a fund or ETF, which allows the chairman and their proxies to exit their positions after manipulating the stock price higher. 

When a short-seller calls out some of these companies -- as Carson did in November -- management can halt the stock for an indefinite period of time, Carson said. This makes it very difficult to profitably short-sell Chinese stocks unless it's "glaringly bad," he added. So while not every investor is a quality short-seller, it's important to be aware of these issues in China.

While some companies with small floats may be prone to manipulation, Seymour argued that as a whole, the Chinese market trades with a relatively low valuation. Specifically, he likes China Mobile Limited (CHL) on the long side and selected the stock as his final trade.

For the rest of the traders' final trades, Nathan said to buy LinkedIn (LNKD), Finerman is buying Dorian LPG (LPG) and Adami is a buyer of Michael Kors (KORS).

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