Apple’s sheer size may slow it down, however. Burham’s comments run counter to the Street’s today, which expects a correction , based essentially on the law of large numbers. The current stock price is high above its 50-day and 200-day historical moving average.
“I’ve been around for 52 years in this business. I don’t really worry about that. Microsoft had similar growth years ago,” said Burnham.
But something about Apple does worry Burnham: “They need to do something with this $100 billion,” he said, referring to the company’s cash on hand.
Burnham thinks Apple’s decision to opt out of dividend payments is the wrong move. “They don’t like to spend their cash. I don’t know what they’re going to do with it. They have about $100 a share in cash, and it’s earning them nothing. They should pay a dividend.”
In the meantime, investors will watch as Apple’s much-anticipated iPad3 launch is set for Wednesday. At the same time, the company may also relaunch a less expensive version of its current iPad 2.
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John Burnham personally owns Apple stock, which is also the top holding in the Burnham Fund portfolio, according to the firm.