The few lucky investors that purchased Apple at $199 following the mysterious electronic plunge in the markets Thursday made a quick 20 percent return as the stock closed above $240. One of those buyers was definitely not Edward Zabitsky. He believes the stock is going to $126 and recommends selling it short.
Zabitsky, who founded his research firm Active Communications Integration in 1997 to consult the telecom industry and institutional investors, believes one of the most-favored stocks on Wall Street will decline nearly 50 percent because of competition from phones using Google’s Android software and because of a double dip in the American economy that will hit luxury brands as a consumer and government debt bubble bursts.
“Apple is a luxury brand and in the past has correlated very well with LVMH Moet Hennessy and Christian Dior,” said Zabitsky, who is based in Toronto, in an interview today. “America didn’t get rid of the bad debt, the government just took it over and consumer credit is trending down.”Page 1 of 7 | Next Page