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Will Investors Continue to Run from Apple?

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  • Description

    Kaltbaum Capital Management’s Gary Kaltbaum on the outlook for Apple shares.

  • Duration 4:30
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Apple's market cap taking a serious hit today dipping below 500 billion dollars.

After the stock side's worst one day fall in four years after analysts warned about the company's future competition the tablet computer market.

Other Boleyn and others that is explain yesterday six and a half percent -- on investors selling for profit ahead of the looming fiscal clip.

The stock rebounding slightly today following CEO Tim -- announcement that apple will bring some manufacturing in the Mac computer.

Back to the US here to -- and Gary -- bomb presidents have called on capital management.

-- I guess the big move in the stock was actually yesterday not today as was a little bit of a recovery.

But I think -- actually said the smartest thing I heard about apple you say don't confuse the stock with a product.

-- look the best selling a ton of products but here is the biggest issue for me.

Sales growth and earnings growth have declined simple is that they were growing 5067.

The last couple of quarters in the twenties.

And the market may be speaking up and you -- remember something very important about a cycle of a great stock.

The stock went from fifteen to 700.

Since they came out with the iPod.

Every great stock has a shelf life.

And we can go back -- late ninety's what in tech land you had a -- Cisco Microsoft and Intel but they got too big earnings decelerated and then they were.

-- you know sent back into oblivion so much -- the same thing's gonna happen to apple.

But what I am saying is the stocks in trouble right here in the big money crowd continues the -- Well and get it -- we love Apple Stock too much of that what's gone on here.

Yeah it's it's over -- just -- everybody owns it everybody loves it if anything goes wrong.

There's only one thing left to do when that's selling.

And I must tell you a lot of big funds have like 5100%.

Of bid followers in that I -- stock apple could they made so much money from that.

And it just that they don't -- -- gold the because it's done so well from in the past.

You gotta be careful about that I'm a big believer in reality.

What's happening with the stock right now and there is no doubt that the hands -- been raised and has been a lot of selling and what I would just hope people right now.

If you're gonna be doing any buying just make sure you have a lot of columns.

You're gonna see some -- wings today there was a 35 dollar swing.

In the first how court today and that's what happens when you get this White House trading and and you know the analysts coming out upgrading downgrading -- targets saying everything's okay.

I would just tell you to be careful here I -- you may still.

Really good point about how widely held the -- as an ally of the mutual fund managers have bought and whether or not they're supposed to be buying growth shocks or tech stocks they don't care the stock they don't care they're gonna throw it -- their fine.

We may have a full screen with some of the -- owners of that stock.

But I have to ask you what other stock is so influential with its products is that is there anything to compared apple.

I don't think there's anything close to apple at this point in time not a -- not even.

-- -- not even close the close.

They are the dominant force -- an important cog in the market.

And you know I'd been trying to tell the NASDAQ and NASDAQ-100 they really need to change how much apple is worth to those indices.

Because when it dropped 6% yesterday.

It at a big meet the NASDAQ and NASDAQ-100 dropped too much they need to change that dynamic especially if things worsen.

As you look forward to do you think this -- this stock that changes dramatically its fortunes -- -- down more and a and B.

Yeah they're gonna start manufacturing here in the states and it sounds to me like almost a political move is that good news for the stock are bad.

-- That it doesn't matter to spot -- Tim Cook Smart.

I think most of there were employed please a contract workers are in China.

There's only about 40000 here and he was actually quoted saying we got to do something about jobs in the United States so I think that's somewhat.

Up political move the big story going forward is IC it.

Competition is really picked up.

And economics 101 -- competition picks up.

Usually Morgan margins get squeezed a little bit of margins get squeezed.

Profits are affected of profits are affected stocks react negatively and I think you're seeing that right now I think the stock is forecasting it.

Well tablets that are and the market is amazing.

We looked at five different products yesterday everybody's got one they they.

IPad does not have the market corner -- more scary it is always a pleasure to have you wanna show thanks for coming on tonight.

And always my pleasure thank you.

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