Steve Cortes Wants to Short Apple, Says It’s a Highflier

Oct 26, 2011
J. Webster
Comments Off on Steve Cortes Wants to Short Apple, Says It’s a Highflier

Yesterday, on the Fast Money Halftime report on CNBC, Steve Cortes again talked about his desire to short shares of Apple. It was all in the context of the momentum and high growth stocks getting chopped down recently when they missed on earnings or had other internal problems. The highfliers like Green Mountain, Netflix, First Solar and even Amazon.

What’s absurd though is for Cortes to lump Apple in with these other momentum or high growth stocks. Apple is in a world unto itself. The company has nearly the biggest market capitalization in the whole stock market. It has piles of cash, as in $81.6 billion, and could buy up nearly all of these beaten up companies right this moment if it wanted to.

But this isn’t the first time Cortes has knocked Apple’s stock and the company itself. A while back he said Apple wasn’t being innovative. What? Yeah, he actually said that with a straight face. It wasn’t a joke.

What’s funny though is it seems the video and the article about this particular CNBC Fast Money show excludes the Steve Cortes comments about shorting Apple. It’s as if they dismissed them out of hand. Pete Najarian looked at Cortes like he was crazy or at list dumb when he said it on the show. Sure, Apple costs $400 per share, a seemingly expensive stock, but not when you consider their cash, their P/E multiple of just 15 and their earnings per share of almost $30.

What, Cortes doesn’t think the iPhone or the iPad aren’t innovative? What, he doesn’t think Apple will sell any iPads this Christmas? Perhaps Apple will take a bit of a haircut, may drop down to $375 a share, but not for long. If it does, it won’t stay very long at that price. Plus, there’s now talk of an actual Apple TV. I guess that’s not very innovative according to Steve Cortes either.

Related Posts Plugin for WordPress, Blogger...

Comments are closed.