Apple Inc (NASDAQ:AAPL) got some negative news about its stock in this space yesterday, when a couple of analysts went on CNBC to say that the bear market is still in place for the stock and that it might drop as far as down to $425 per share. However, Thursday morning on the Fox Business Network, W.P. Stewart chief investment officer Jim Tierney said that the Cupertino stock was actually one of his top three stock plays currently.
Apple Inc (NASDAQ:AAPL) was actually right at the top of his very short list of top stock picks, saying, “It has retraced about 15-20 percent from its peak. So one may ask, ‘What is wrong with the Apple story?’ To us, there is nothing wrong. There is a supply problem, not a demand problem. They just can’t make enough iPhone 5s. In last year’s December quarter, they produced 40 million phones. In this September quarter, only 27 million. They just need to get to the 40-50 million production level, and Hon Hai came out overnight as said that was part of the issue.” AAPL is down about 1 percent again Thursday, to just north of $552 per share. Billionaire Julian Robertson of Tiger Management had a $58.9 million stake in AAPL as of the end of June.
Tierney also said he was bullish on Yum! Brands Inc (NYSE:YUM), which is up 10 percent since early October, and he said Thursday he would add to his position. “Two things are going on with Yum! First of all, the U.S. business is rebounding and growing. And then you look at China. China seems to have stabilized, and there is a new government coming in a couple months and China should get back to a growth phase, particularly for consumer-driven businesses.” YUM is down slightly in early trading Thursday, to about $71.60. Billionaire Paul Tudor Jones of Tudor Investment Corporation had a $10.1 million play in the stock as of June 30.
The third buying play Tierney mentioned makes sense considering the season – including the Nor’easter that blew through the Sandy-ravaged East – as Tierney highlighted V.F. Corporation (NYSE:VFC), home of The North Face, Wrangler and Lee Jeans, among others. This despite the company posting an earning report that missed expectations. “V.F. Corp is expanding the company internationally, they have some great brands and they are putting more retail presence in the U.S. And if we have a cold, wet, sloppy winter, like we’re starting out, guess what? You will need their products.” VFC is down slightly in the early hours Thursday, to about $156.80 per share.