Published Tue, 08 Jan 2019 16:28:08 -0500 on Seeking Alpha
Investment Thesis Apple's (AAPL) weaker-than-expected iPhone sales have taken the market by storm as its market cap continues to plummet after recently reaching a total valuation of $1 Trillion. AAPL's decline in share price has spread like wildfire throughout the tech industry and appears to be negatively impacting the share price of its suppliers and competitors.
^DJI data by YCharts
Here is how a few of AAPL's suppliers have fared over the last few months.
AAPL data by YCharts
I refer to the impact on these companies as the Apple Effect since many of these suppliers derive a significant amount of business by providing components used in the iPhone, iWatch, and other AAPL products. Due to the fact that AAPL products are often considered superior to many of the brands, it would seem fair that we assume that their business model is safer because of the die-hard following and acclaim that it has built over the years.
So, what does the Apple Effect have to do with John and Jane's Taxable portfolio? It is a reminder that even the safest companies can have weak points (if you look hard enough). Additionally, when assessing risk in your portfolio, it is important to consider any relationships between stocks because of the impact of too many companies tied to another can present a serious risk for your portfolio. For John and Jane, the only stock with this type of exposure to AAPL is Texas Instruments (TXN). Because my clients' TXN position is... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|NEW RESIDENTIAL INVESTMENT||14.98||18.0||0.83||2.00||13.28|
|ARBOR REALTY TRUST||12.77||9.1||1.40||1.16||9.21|
|WESTLAKE CHEMICAL PARTNERS LP||21.72||13.6||1.60||1.83||8.44|
|TANGER FACTORY OUTLET CENTERS||16.50||21.4||0.77||1.42||8.35|
|BUCKEYE PARTNERS LP||41.22||0.0||-0.63||3.00||7.29|
|HELMERICH & PAYNE||40.76||0.0||-0.68||2.84||6.74|
|SIMON PROPERTY GROUP||155.27||20.8||7.48||8.40||5.21|
|WP CAREY & CO||88.72||31.4||2.83||4.14||4.73|
|WASHINGTON TRUST BANCORP||50.06||12.6||3.98||2.04||4.22|
|OLD REPUBLIC INTERNATIONAL||22.80||9.2||2.48||0.80||3.57|
|JOHNSON CONTROLS INTERNATIONAL||44.30||6.7||6.57||1.04||2.42|
|SPECTRA ENERGY PARTNERS LP||35.40||0.0||0.00||0.00||0.00|
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