“I think there’s room to expand,” Jim Cramer
Apple has 51 new stores on the drawing board, adding to the total of 361 stores worldwide. Of those 51 new locations, 28 are scheduled to open in China and Hong Kong. At the moment there is one Apple store in Hong Kong and 5 in mainland China.
Here are a couple of pictures from the Hong Kong store.
We remain heavily overweight in Apple stock. As long as it remains cheap relative to its earning power, we will maintain our position. Someday Apple stock will no longer be cheap and someday the company will stumble. But for now, we’ll enjoy the ride.
Why in Hong Kong?
I have been meeting here with local brokers, hedge fund managers, and investors, asking the perpetual questions: “Is China for real and is there trouble on the horizon”?
We need to know the answers to these questions mainly from a defensive standpoint. Our portfolios have benefitted tremendously from the growth in Asia and we think there’s more to come. But even companies not directly involved in Asia have been helped because Asian growth is boosting the entire world economy.
If Asia falters, as so many investors expect, then global growth, as well as US growth, will suffer. We need to avoid being surprised.
Daniel A. Ogden
Disclosure: Dock Street Asset Management, Inc. and our clients may own securities. This article is not intended to be used as investment advice.