General Motors, Apple, Citigroup, Potash: Doug Kass' Views

NEW YORK (Real Money Pro) -- Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.

 


 

Trade of the Week: GM

Originally published at 10:22 A.M. EDT on Monday, June 1, 2015

I'm going long on General Motors  (GM) at $35.73 as my second Trade of the Week.

My reason is, quite honestly, a gut feeling -- and is therefore speculative even though the share price is still depressed. (As Grandma Koufax would say, "Dougie, you can't get killed falling off of a curb.")

While I expect tomorrow's auto-industry sales figures to be impressive (and likely beat forecasts) and GM's shares appear relatively oversold (unlike the Nasdaq), I've heard repeated rumors of a possible acceleration in the company's return-of-capital and capital-allocation strategy.

I have no idea whether these rumors are true, but I've heard them so often and from so many different sources that I wouldn't be too surprised if this did happen sooner rather than later.

 


Going Short on Apple (Again)

Originally posted at 10:01 a.m. EDT on Monday June 1, 2015
 

I re-established my small short position on Apple AAPL above $130 this morning as I suggested I would, for previously mentioned reasons.

Hopefully, I can make another trip to the bank with Apple!

  Originally posted at 9:15 a.m. EDT on Monday June 1, 2015
 

Citigroup (C) has announced plans to shut down Banamex USA, which employs about 300 people and has approximately $1 billion in assets. Citi shares, which are on my Best Ideas list, are trading at +$0.80 in premarket action.

Potash Corp. of Saskatchewan (POT) was mentioned positively in Barron's Up and Down Wall Street Column over the weekend after the stock had been down on Friday.

In the article, Citi strategists compiled a list of global companies with equity capitalizations over $10 billion and ranked them relative to their payouts made via share repurchases and dividends. Potash was high on the list of companies with 20% operating-cash-flow margins ("cash cows") thanks to a 8.6% payout ratio -- making it a potential takeover target. POT is also on my Best Ideas list.

At the time of publication, Kass and/or his funds were long GM, C, POT and short Apple, although holdings can change at any time.

Doug Kass is the president of Seabreeze Partners Management Inc. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.

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