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Will Value Fund Buying Drive Apple's Next Leg?

Wednesday, 25 Jan 2012 | 6:03 PM ET

Are Apple shares bound to climb if the company starts paying a dividend?

After all, a dividend would make the stock attractive to value funds. “The amount of dollars that value funds have to put to work is significant,” reminds Karen Finerman.

And Apple is extremely under owned by value funds. Just take a look.

% Owned By Value Funds
Microsoft 71%
IBM 38%
Oracle 29%
Apple 29%
Google 25%
Source: Bernstein Research

However, Dan Nathan offers a word of caution before trading on this thesis. “When the growth guys come out of Apple, it will blast down,” he says.

Opportunities in 'Under-Owned' Stocks?
The Fast Money crew takes a look at under owned big cap stocks, and discuss whether Apple is under owned or merely under valued.








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Trader disclosure: On Jan. 25, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Terranova is long VRTS; Terranova is long IBM; Terranova is long SU; Terranova is long SJM; Terranova is long BRCM; Terranova is long MUB; Terranova is long EMC; Terranova is long F; Terranova is long SBUX; Terranova is long V; Terranova is long AXP; Terranova is long APC; Terranova is long OXY; Terranova is long TRLG; Terranova is long JNPR; Terranova is long CSCO; Terranova is long WFM; Terranova is long XOM; Terranova is long UNG April $5 puts; Finerman is long (JPM); Finerman is long (BAC); Finerman is long (PLCM); Finerman is long (IBM); Nathan is long AAPL Jan puts; Nathan is long BAC Jan puts; Nathan is long MS Jan puts; Nathan is long NFLX Jan calls; Nathan is long INTC Jan put spreads; Nathan is long MSFT puts; P. Najarian is long AAPL; P. Najarian is long BAC calls; P. Najarian is long C; P. Najarian is long JPM calls; P. Najarian is long MSFT; P. Najarian is long INTC; P. Najarian is long JCP

For Karen Finerman
Finerman's fund is long (AAPL)
Finerman's fund is long (JPM)
Finerman's fund is long (PLCM)
Finerman's fund is short (SPY)
Finerman's fund is short (MDY)

For Mike Khouw
No Disclosures

CNBC.com with wires.

  Price   Change %Change
AAPL
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  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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