Tags: Newsmax Now | Tom Hutchinson | apple | stock price | carl icahn

Tom Hutchinson on Apple: 'Let's Not Get Lulled Into Thinking a Company Can Do No Wrong'

By    |   Tuesday, 19 May 2015 02:00 PM

While Apple is "a fantastic company," Tom Hutchinson, senior editor of the Newsmax newsletter "The High Income Factor," told Newsmax TV that he doesn't necessarily agree with legendary investor Carl Icahn's contention that its stock price is worth $100 more than current levels.

Icahn said on Monday Apple's stock was "still dramatically undervalued" and that it should be trading at $240, nearly double its current price. Apple shares rose to $130.70 by midday Tuesday. The stock has gained more than a quarter since October, when Icahn first said it was undervalued.

Hutchinson was asked if the legendary investor's optimism is justified.

"I do not believe so. He can make a case for Apple stock being $150 a share – it's now $130 – or maybe even $175, but $240 a share is a little loopy," Hutchinson told "Newsmax Now."

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"What he's doing is he's saying given Apple's track record of success and innovation and the size of the potential markets ahead in TV and cars and the watch that Apple should really do well, but this is a bet on unproven markets and the fact that Apple is unproven in those markets. It may well be."

"Apple is a fantastic company. I'm proud of Apple. I own it myself. But let's not get lulled into thinking a company can do no wrong," he said.

"A company most certainly can do wrong and it will and especially in technology where the competition is fierce," he pointed out.

"It's like being the heavyweight champ. You got to keep on going around beating up big tough guys and if you slip a little, you lose your focus a little bit, you get out of shape, they're going to start knocking you down. So let's not assume Apple will dominate these markets."

Meanwhile, Hutchinson doesn't see a looming stock-market crash, yet doesn't expect Wall Street's bull to continue charging.

"I don't think it's going to soar much higher from here any time soon, but the new highs are a little bit misleading because realize the index has started the year at highs and although the headlines are new highs, you're only up about 3 percent or so on the indexes, which is not that big a deal," he said.

"There's a bit of a dichotomy because the economy's been sputtering, yet the market is still at all-time highs and the reason for that is the first quarter was a little skewed and the markets expecting a much better economic performance in the second half."

About Tom Hutchinson
Tom Hutchinson is a member of the Newsmax Financial Brain Trust. Click Here to read more of his articles. He is also the editor of The High Income Factor. Discover more by Clicking Here Now.


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While Apple is "a fantastic company," Tom Hutchinson, senior editor of the Newsmax newsletter "The High Income Factor," told Newsmax TV that he doesn't necessarily agree with legendary investor Carl Icahn's contention that its stock price is worth $100 more than current levels.
Tom Hutchinson, apple, stock price, carl icahn
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2015-00-19
Tuesday, 19 May 2015 02:00 PM
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