“Shares of Apple Computer Inc. fell to their lowest levels Monday in more than two months, on concern that there is not likely to be much good news surrounding the stock for some time,” Rex Crum reports for MarketWatch. Apple fell $4.15, or almost 6%, to $67.80, and the stock is down 22% since reaching a year-to-date high of $86.40 on Jan. 12. It’s the first time that the company’s shares have been below $70 since trading at $68.81 on Dec. 1.”
“For more than a year, Apple has put on one of the most-dominant market performances in the technology sector. The Mac and iPod maker even had a 2-for-1 stock split on Feb. 28, 2005 after its shares reached almost $90 — and then saw the stock nearly reach that all-time again in January,” Crum reports. “Robert Bacarella, manager of the Monetta Select Technology Fund said Apple’s overall business remains solid, but that there are genuine concerns about the company’s abilities to match is year-over-year profit and revenue figures… here is little to suggest it is necessary to sell Apple shares, but that the stock needs to show some strength at the $67 mark to maintain broad confidence.”
Crum reports, “Analysts surveyed by Thomson First Call estimate that Apple will earn 44 cents a share on $4.58 billion in revenue for its current, second fiscal quarter. Such figures would result in a 29% rise in earnings per share and a 41% increase in revenue. The huge success of the iPod, along with increased sales of Apple’s flagship Macintosh computer line have created a situation that, while enviable, is also hard to match with every subsequent business period, Bacarella said.”
Full article here.
This is an important time for Apple shareholders and those contemplating becoming Apple shareholders. Play this one right and you could see significant results.
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Related article:
Apple Computer shares drop over 5-percent in NASDAQ trading – February 06, 2006
>Evil_MS_User
>”I warned him never to fall in love with a stock – I hope he listened.”
Spot on. Never get emotional about stocks.
One thing I will reiterate: Sell short on GOOGLE.
DISCLOSURE: I am not liable for any losses incurred by the above statement.
End Of Transmission
Another comment I wanted to add is that XM satellite Raido (XMSR) and Sirius (SIRI) are both being impacted by digital media delivery through the internet. XMSR has dropped about 50%(!) in the past year alone. Big boys who sold short on that one made some serious money.
XMSR has a web site now, but I’ve never visited it so I can’t comment on that other than the fact that they see that they need to get some form of Internet-based digital media delivery going.
I think part of this is because people want CONTROL. In other words, you can pay $10.99 a month for a subscription to XMSR but you have no control over the content. With digital delivery, you can pick and choose as you like.