Apple (AAPL) has become synonymous with hand-held gadgetry but the stock of late has been the definition of pain. In the attached clip Breakout welcomes Jeff Kilburg, founder & CEO of KKM Financial to give us his thoughts on Apple and other ways to play the undeniable boom in all things wireless.
Apple
Kilburg hasn't given up on the stock yet but he's not exactly pounding the table either. "I still like holding it here," he says in the attached clip. "There's a lot of volatility in Apple right now; for a lot of folks who don't have the stomach, you have get on the sidelines."
For those who do actively trade, Kilburg suggests using the volatility in Apple as a way to sell puts against long positions to eliminate some of the risk out without giving up the position.
Cisco (CSCO) and Juniper (JNPR)
Stepping away from the fray between Apple and every other tablet-maker, Kilburg is taking a look at the guys behind the scenes.
"There's more and more junk we walk around with" he notes, ticking off just a few of the items he had with him at the moment. Whichever devices win the demands on networks is going to win. To Kilburg that means revisiting these long left for dead names.
Verizon (VZ)
The big winner may be Verizon. The growing competition between device makers has given both Verizon and AT&T (T) more power in their relationship with Apple. Where for years AT&T effectively subsidized sales of the iPhone, there's now a more equal relationship. Apple needs the carriers as much as they need Apple. In terms of profits per unit, anything resembling a real revenue split is a step up.
Nothing sexy in the non-Apple names, but Apple investors may be looking for something a little more plain these days. If so, Kilburg's shopping list is a place to start.
