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Uncertainty Over Apple

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  • Description

    Hal Goldstein of Nuveen Asset Management gives his outlook for Apple stock.

  • Duration 3:56
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Joshi thanks so much let's continue this discussion here apple shares right now down roughly 35%.

From their all time high in September and you -- large cap growth opportunities fund.

Co portfolio manager -- Goldstein is taking notice Apple's historically been overweight not -- -- but the stake -- now been reduced.

So should investors be worried.

How welcomes you showcasing your again this museum large cap growth opportunity fund it's been outperforming for years but as of late January.

Was only up twelve and a half percent vs the S and -- which is up sixteen.

And a half percent due largely put blame apple for that decline.

You know hi Laurie hi thanks for -- question sure.

Apple certainly is one of the things that has contributed to.

Our recent challenges but.

But like -- any company that's down 35%.

We're gonna take notice of Morgan who.

I consider how that impacts us going forward so it's not the only thing but it was an important thing.

So you -- your -- your investment shares of apple by about half if I'm not mistaken.

Tell me -- what that led up to the decision to make that move.

Well it's a little bit less than that and we mean we did reduce our overweight.

Incidentally we had an overweight in this company for about the last eight years and it's important to remember that.

That from a shareholder standpoint from a customers.

You -- on the devoted.

Apple customer as well from an employee standpoint this company has.

Made enormous contributions to those those are constituents over the last eight years.

What made -- change is that the earnings outlook.

The it is is lacking clarity you've talked about -- on your show already just just before I got on and and for sure that that lack of earnings growth clarity as is the big uncertainty at this point.

And are you annoyed by the cash toward especially this late breaking development that is Shibani put it Tim Cook the CEO of virtual -- sites like the question.

Of what to do with it well.

Well.

You know they they do have a 146.

Dollars I think of cash per share and they have been making moves.

Towards.

Reducing some of that share that that cash based.

Remember two thirds of that is outside the United States so there are some complicating.

Repatriation tax issues associated with debt.

But.

You know I view that is they're being a victim of their own success they're they're generating so much cash because.

The iPhone profitability is is so staggeringly high.

That.

You know there -- a victim of their own success.

Okay that's -- know how you gotta say Asia's with apple you've got he had that disaster with the mapping system a management shake up that resulted.

A -- earnings reports this issue with the free cash that's sitting up all kinds of criticism.

So what's the positive catalyst that's gonna turn shares around he sounds so bullish on shares of apple today would you most optimistic about.

You know I think that it's not unreasonable to expect this company is going to innovate.

The fact that we don't know exactly what categories.

That's -- who be or what specific products that that's gonna be or what form of cash distribution.

Is gonna it it will will be forthcoming.

You -- I -- leave -- -- and reasonable rate on the court to the -- product to the iPhone iPad.

The iPhone is a tough act to follow it has enormous profitability and is represents fantastic growth for the company but.

I I believe that it's not.

Wrong to anticipate.

That more will come particularly.

When the stock is as cheap as as the company has and with a record -- of but innovation that the company has has brought.

Protestant -- color to the story today how Goldstein thanks so much.

That he may have Bernanke back in the hot seat.

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