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Gundlach: Trade Apple, short Chipotle

Wednesday, May 15, 2013 - 01:57

Jeffrey Gundlach of the $56 billion DoubleLine Capital shares his trading strategies for two high-profile stocks: Apple and Chipotle.

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And there. Inmates have been calls in the US obviously apple and you were right on that I'm a short to -- Well I'm not a short chipotle the I think it's a great time to short it though I'm actually looking at a 380 dollar price it might get there today I don't know hasn't gotten there. Recently that's like the perfect priced short that press. And do it I I I think these price of triple play. Is remarkably high. Verses their earnings to four PP. For companies that have as good products are what their products I -- you know about it in touch with products. But I think that they seem to -- lines out the door and very saturated. And that means where's the growth could come from mr. pushing -- maximum volume with lines open door and you've expanded your store count to be almost ubiquitous. Then where you go from there hi I have a hard time seeing why the for a stop. That's the companies that more mature enough to. Apple corporate bonds. Austin house and Apple's corporate bonds. Not really. They don't you'll very much they're super safe I mean Apple's cash -- machine. You know I kind of like apple these days just as a trade I think it's. Formed a base the PE when -- cash out. It's purely pretty low. The that's pretty well for a and out to mature business certainly challenges product innovation. But their cash flow machine I'd rather -- rather Apple's stock -- well that is a trade now on the I don't like it long term I think Apple's stock may stay around. 500. May be some now and then it goes into the 300 that could stay there for years skeleton Microsoft. You know where the company is very big lots of cash flow. What's next yet and we don't know what's next for --

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Gundlach: Trade Apple, short Chipotle

Wednesday, May 15, 2013 - 01:57