iBond: The Next Big Catalyst For Apple?
Speaking to Benzinga during Tuesday's #PreMarket Prep, Recon Capital Chief Investment Officer Kevin Kelly commented on Apple Inc.'s (NASDAQ: AAPL) move to raise capital in the oversees bond market.
Kelly noted that Apple's dividend is "low" given the fact that the company holds about $30 in cash per share. He added that Apple's decision to seek financing in the international debt market serves as a sign that a major catalyst in the form of a dividend or additional buybacks is imminent.
As such, Kelly added that "the low is in right now" –- referring to the $120 to $124 per share level.
Kelly suggested that a strategy investors could consider is turning shares of Apple in to an "iBond" by selling a $120 put and collecting a premium. he suggested that shares of Apple could climb to new all-time highs as Apple starts to put its capital "to work."
Shares of Apple traded recenlty at $126.59, up 1.3 percent.
Listen to the full interview below:
Latest Ratings for AAPL
|Oct 2016||Goldman Sachs||Maintains||Buy|
|Oct 2016||Credit Suisse||Maintains||Outperform|
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