Is Apple Closing Down on a Bottom?
Apple (NASDAQ:AAPL) reversed a four-day slide on Monday by jumping 2.6 percent. However, the company has lost more than 18 percent of its value since the beginning of the year, and touched as low as $419 in intraday trading on Monday — its weakest point since January 2012.
Collin Gillis of BGC Financial, who has a Hold rating on Apple, said that despite the continuing weakness in the company, the stock may finally be starting to put in a bottom. “It’s certainly starting to feel like that,” Gillis told CNBC on Tuesday, according to Barron’s. “It’s been a bit of a falling knife, though,” he said. “Every time you want to catch it, it drops down another 10 points.”
Gillis added that there was bound to be some positive news out of the company soon, because “it’s what they do for a living.” He also said that, in addition to a product announcement, news related to dividend and cash allocation may arrive soon as well.
“They have $137 billion in cash, and unless they’re going to burn it, they’ve got to give it back to investors,” he said. “Now, it is reasonable you will see some news flow out of this company in the spring time frame.”
Asked if the Apple’s dividend should be in the four-percent region, Gillis agreed.
“When the dividend was first announced last year, the move to the upside surprised me,” he said. “Normally, a dividend increase doesn’t give you that boost. If they raised the dividend by 50 percent, and got about a 3.7 percent yield, that would be seen as in line with high quality corporate bonds, that would give you a good lift.”
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