Cool Holdings stock jumps as part of backdoor play by Apple investors

Shares of Cool Holdings Inc (NASDAQ:AWSM) soared in the premarket Monday as investors saw the retail company for Apple Inc (NASDAQ:AAPL) products as a way to play the iPhone maker in the market, an analyst said.

“For an investor looking to tie-in with Apple, the biggest and best brand in the world, this is how it’s done, and this is the time to do it,” a report by Baystreet said. “The iPhone alone is expected to rake in US$165bn in sales this year – it’s a stunning amount of money from a single product line. And this ties into Cool Holdings.”

Since Apple has already hit a valuation in excess of US$1 trillion, the Baystreet report said the stores of Cool Holdings, which sell the Apple product line, are already raking it in by earning “an impressive US$3,750 in revenue per single square foot.”

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Shares of Cool Holdings were up almost 8.5% to US$5.62 in Monday’s premarket, having risen 9.75% to end on Friday at US$5.18.

Apple shares recently hit an all-time record of US$229.67 and were trading 0.71% down in the pre-market at US$222.15. The shares ended on Friday down 1.14% at US$223.84.

“Its Apple-product boutiques look like Apple, and smell like Apple, but they aren’t run or owned by Apple,” Baystreet said.

Last week, Cool Holdings opened the Agora Mall store in the Dominican Republic, the largest authorized Apple reseller in the country. The company also has several retail outlets in Latin America, primarily in Argentina. The company plans to add 200-plus stores by 2020.

Cool Holdings operates under the Apple Premier Partner, Apple Premium and the Apple Authorized Reseller Mono-Brand programs. The company is based in Miami, Florida.

Story by ProactiveInvestors