Hugh Johnson begs to differ with the growing criticism surrounding Apple’s (AAPL) handling of the iCloud hacks that led to scores of graphic celebrity selfies hitting adult websites last week. Shares of the Cupertino iEverything maker were off more than 3% last week on the news but most of the harshest criticism of the company’s security measures were drowned out by yet more speculation surrounding form factor and features of wearable devices and phones set for release tomorrow.
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With Apple shares up the better part of 30% since April ahead of the big event there are those who are flashing back 2012 when shares sprinted higher ahead of the release of the original iPhone 5. Apple shares peaked on almost exactly the day of the release then collapsed by almost half over the next six months. Even today the market cap of Apple is lower than those heady days (though the stock price is higher… buybacks make up the difference).
Johnson recognizes the headwinds facing Apple but he likes buying a potential dip. “They’ve got very good competition from Samsung but boy does Apple have a customer base that’s loyal and you can’t dismiss that,” Johnson says, “The stock has been performing well and I think will resume performing well.”
Related: Apple iCloud hack raises questions ahead of big release
To those concerned about the security issues Johnson encourages investors to take a look at Checkpoint Systems (CKP) rather than sell Apple. For that matter he sees room to run in old guard companies like Intel (INTC), Hewlett-Packard (HPQ) and Microsoft (MSFT), all of which have been surprisingly strong all year.
He describes all three of the old guard names listed as good companies and says the stocks are starting to suggest a turnaround operationally. “It’s amazing what a new CEO has done for Microsoft and what Meg (Whitman) has done at Hewlett. I think there are some real positives in the so-called ‘Old Iron’ technology.”
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