In early October Doug Kass, the president of Seabreeze Partners and a frequent guest on CNBC, published a manifesto on The Street listing 10 reasons he believed Apple had “lost its mojo.”
Nine of his 10 reasons were fundamental and irreversible. Things like the death of Steve Jobs. The increasing complexity of Apple’s product line. The loss of its ecosystem advantage. And worst of all: “Apple is selling an equal to worse product than the competition for more money.”
If he was correct in mid October, it would follow that he was even more correct this week, when Apple — which was trading for $674 a share when Kass started his campaign — traded for as low as $533.74.
But no. Having helped knock more than $130 billion off Apple’s market valuation, Kass on Friday cheerfully announced that he is buying Apple again.
“Hey, I never said it was a forbidden fruit,” he told the Wall Street Journal. Then he preceded to tick off five reasons he’s turned bullish on the stock. You can read them here.
Here’s the thing: None of his five reasons for buying Apple now address the fundamental concerns he raised in October. Steve Jobs is still dead, Apple’s products are still more expensive than the competition, etc. etc.