Henry Blodget, the CEO of Business Insider, and perhaps most famous for touting Internet stocks for Merril Lynch back in 2000 but deriding them in emails to insiders, just bought shares in Apple.
Yes, Blodget is now back in the stock picking and analysis game, buying shares of Apple at around $391 a share. This is his cost basis, so does that mean he’s been averaging in or just purchased shares at this price only? Hard to say but he’s betting the dividend will pay him nicely while Apple shares either tank further or they soar. Here’s some of his reasoning:
I see two possible scenarios for this investment.
Either Apple really is becoming Nokia, in which case the stock will go to $250 and stay there until they break up the company and distribute the cash. (And I’ll lose half my bet).
Wall Street has become way too pessimistic about a company that still makes great products and still has a strong strategic position in fast-growing markets that will do okay over the next couple of years… and the stock will go up.
In the meantime, I’ll collect a dividend that is a lot bigger than my index fund is paying me.
Yesterday, Jay Yarow and I wrote a long article spelling out the “bull case for Apple.” If you’re curious about the logic, you can read more there.
And, if you’re an Apple hater, you can cheer wildly as the stock keeps dropping and I lose my shirt. (My cost basis is $391, in case you’re curious.) (Business Insider)
It’s really a win win for Blodget though, not only does he get paid a nice dividend for buying Apple shares, but he also gets all the attention on his Business Insider website for buying those shares in Apple. His website will make a nice sum of money on the exposure of just his post on buying Apple shares. Visitors will come to Business Insider to hate on him for his purchase and or praise him. Time will tell.