Apple Inc. (NASDAQ:AAPL) and other old “old tech” companies have a compelling bull case going for them, Robert Pavlik of Banyan Partners and Jeffrey Kleintop of LPL Financial told CNBC.
Pavlik told the news organization that he is bullish on Apple Inc. (NASDAQ:AAPL) not only because the company is conducting its Worldwide Developers Conference but because of what he says are compelling reasons why the stock is one of his long-term holdings. In fact, he said that people are not likely to go out and buy a new product the iPhone-maker has because of an announcement of a new operating system. He added:
“What I’m interested in is Apple’s development going forward. What products are they going to be bringing? Are they going to do iWatch? Are they going to do TV? Are they going to do something so out of [what’s] expected that it’s just going to drive the overall industry? Apple has that ability. That’s one of the reasons why I own it. It’s also an undervalued stock, certainly growth associated, [and] pays a great dividend.”
He added that Apple Inc. (NASDAQ:AAPL) is a long-term holding for him.
In the case of Kleintop when he was asked about concerns investors have about certain tech names being fairly valued and overvalued, he said he likes to be in “old tech” companies and not just Apple Inc. (NASDAQ:AAPL). He told Sue Herera that he believes these technology companies are going to continue to move higher because organizations are going to continue to need the products they offer. He noted:
“It’s more of the consumer-oriented technology companies that tend to be maybe a bit in the pricier side. I like the ‘old tech,’ [technology companies] bigger than just Apple and a few other names. The business spending side is really accelerating here as we see businesses redo their [capital expenditure and] ‘re-up’ and really expand some capacity. There are so many other areas whether it’s in semiconductors, whether it’s networking equipment, or memory, or any of these aspects of growth in companies. As we hire more people, they need more material in their desktops [and] they need more networking inside corporations. It’s a key barometer of corporate spending. I think we’re going to continue to see a move higher.”
The full video is available below:
However, the WWDC is not the only event that puts Apple Inc. (NASDAQ:AAPL) in the spotlights today. The company is doing its first stock split in nine years of trading on the stock markets today. In this way new shareholders will be eligible for the stock split starting today. However, the pre-existing shareholders of Apple Inc. (NASDAQ:AAPL) will receive six additional shares (the split is seven-to-one) on Friday, June 6.
Among the largest shareholders of Apple Inc. (NASDAQ:AAPL) is the notorious investor Carl Icahn, whose Icahn Capital LP owns some 7.54 million shares, as of the end of March. Another investor is David Einhorn‘s Greenlight Capital, which holds a $1.07 billion long position, which contains over 1.99 million shares.
Disclosure: none.
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