Doug Kass Shares Some Surprises for 2013
Doug Kass, founder and president of Seabreeze Partners, was on CNBC with Melissa Lee sharing several of his surprise predictions for 2013.
Kass believes another hedge fund manager will join Bill Ackman in acquiring a sizable position in Procter & Gamble (PG). The hedge fund duo will pressure PG to split into two or three separate entities which will lift the stock $7-$10 after it’s announced.
Kass predicts a good year for Ford (F) based on surprisingly good domestic automobile sales (his forecast of 17 million versus 15.5 to 16 million consensus).
Regarding Apple (AAPL), Kass sees reduced sales in the first half of 2013 from the weight of competitive pressures from Microsoft’s new Surface computer, Google’s Nexus, Amazon’s Kindle, ecetera. Kass forecasts AAPL’s earnings will come in at less than $40 per share. “Senator Levin’s subcommittee also has an investigation into offshore tax havens, the results of which will be released in the next month or two, and this will underscore the fact that Apple and other tech companies have tax avoidance strategies which are hurting the budget deficit,” Kass added. Kass sees AAPL spending the first six months of 2013 under $550 per share.
The interview continued with Kass commenting on his big miss from last year’s predictions which was that Bank of America would have major problems.
Last year, Kass predicted 15 surprises for the year 2012 and was correctly optimistic about the stock market [link].