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Doug Kass on Apple - More Bad Things Ahead
Posted by: Dheeraj Grover (IP Logged)
Date: January 23, 2013 09:20AM
Well-known investor and hedge fund manager Doug Kass of Seabreeze partners was on CNBC to discuss his views on Apple and why he is so bearish on Apple (AAPL). He thinks Apple is in for more bad times; this is just the beginning.
-- Don't believe results of the current quarter; they will not tell anything about the future of Apple.
-- Competition has intensified. Apple's iPhone is not the only good smartphone on the market and the iPad is not the only good table on the market.
-- He expects the first decline in year-over-year profit growth since 2003. He thinks it will miss the street estimates but will be above its own estimates.
-- He said the average selling price of Apple devices will continue to decline; the iPhone impact will be muted going forward.
-- What we need to watch for is gross margin. The company has guided a four percentage-point decline in gross margin. Analysts expect it to be around 38%, but there is no consensus on the margin going forward.
Credit and source: www.cnbc.com, CNBC
Here is the video:
Stocks Discussed: AAPL,