“Even Apple Computer, it seems, can’t defy Newton’s laws forever. Shares of the company traded off as much as 7% Monday and are off some 22% since hitting an all-time high last month. The selloff follows a three-year run that has sent Apple shares up more than 900%,” Troy Wolverton reports TheStreet.com. “Analysts and traders were at a loss to explain the immediate cause for the stock’s Monday decline. But more broadly, a number of recent developments have made investors nervous, leading them to cash in on the stock in recent sessions, analysts said. ‘Everyone’s question now is how much more upside there is in Apple’s products,’ says Tim Biggam, chief options strategist with Man Securities. ‘There’s some pretty hard profit-taking’ going on, added Biggamn. ‘A lot of longs have gotten nervous.'”
MacDailyNews Take: Everyone? Or just those with a desire to see a lower share price?
Wolverton continues, “Investors have had to deal with a growing list of concerns. While sales of the company’s iPod digital music players in the holiday quarter topped nearly everyone’s expectations, the company predicted a sharp decline in sales this quarter.”
MacDailyNews Take: Yes, it’s a shame they canceled Christmas in March this year.
Wolverton continues, “…The company cautioned investors that because of its transition to computers based on Intel’s processors, computer sales could continue to be soft in the current, or second, quarter [and] some analysts and investors have worried about the impact on Apple of the proposed sale of Pixar to Disney… Analysts have also worried that the Disney position might distract Jobs — who is widely viewed as having saved Apple from irrelevance or death — from his duties at Apple… Another concern is the past weekend’s column in The New York Times that denounced Apple’s iPods as being fragile devices with a short, useful life and that accused Apple of having poor customer service.
“Last month, Apple, for instance, was trading at about a quarter of Microsoft’s, valuation, says one hedge fund manager, who asked not to be named,” Wolverton writes. “But Apple’s earnings and revenue constitute a much smaller fraction of Microsoft’s than that. ‘There’s no way you could say this business model is as good as Microsoft’s or two doubles away,’ says the hedge fund manager, who is long Apple’s shares but recently sold off 90% of his stake. The opinion of investors seems to be ‘take the money and run,’ said the fund manager. ‘A lot of people are just doing that.'”
Full article here.
MacDailyNews Take: So many worries, nerves, and concerns. Drive it just a little bit lower, guys, please? This is classic. Massaging a Correction 101? Prospective AAPL investors who believe, despite the many “worries,” “nerves,” and “concerns,” that Apple has a strong future should be salivating soon, if not right now.
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“eminds me of that scene in Forest Gump when he pulls out that stock certificate….”
How´s the 22% drop in Apple stock remind you of that?
> Vinita Boy (AKA: Big Boy)
>If you’re so damned smart “and have gleaned from the market over the years,” how come you’re not an investment counsellor today? It’s SO easy to sit on the sidelines and evaluate OTHERS’ decisions, isn’t it? Put your money where your “gleaning” is, or shut the fsck up! Grab your savings and short Googol now, you financial genius, or stay away from where the big boys play!<
This is just the kind of juvinile response I expected to my post.
I said “I AM NOT A STOCK ANAYLIST” and that this was only my opinion. I don’t demand that anyone follow my OPINION. Can no one on MDN post an opinion without getting poison spit in their face. When you want to reply in a logical, thought provoking manner, then I’ll start listening. Big boys shouldn’t “play” in the stock market. Never get emotional or too attached to a stock, because it might just burn you.
BTW: as of this writing Google is down another $20.00. $100.00 down from it’s 52 week high.
Stockboy! YOU are wrong!
I didnt get them all in once. The first 2000 i bought at a price of 42 the last 1500 just recently so, that leaves me with that amount!
Taxes?????? Sorry to say: you are wrong again. im not american, in some countries you dont have to pay taxes on stock gains!!! so i keep the whole lot!
enjoy your ride downwards!
>Charko
>”Apple is expanding in all directions. The evidence for this I read on the internet and see all around me – here in Berlin.
But, above all, the quarterly results show this, and the growth is exponential.
Murder Junkie,
I’ve copied your post and tucked it away.
In about a year from now, or less, I’ll rub your nose in it.”<
I will glady take my lumps. If I am wrong, I will at least own up to it and not try to justify it. If you are wrong however, I will not “rub your nose in it”. I will just be satisfied that my opinion was correct.
I will keep your post as well – just as a reminder.
Remember when you rub my nose in it to rub REAL HARD.
Murder Junkie: “Can no one on MDN post an opinion without getting poison spit in their face.”
Answer: No. MDN is lead by and full of teenage Macfanboy delinquents.
Best thing to do is state your opinion and not pay attention to the wiseasses that reply.
To observer: LOL
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Google sucks.
>Queezzie
>”Murder Junkie: “Can no one on MDN post an opinion without getting poison spit in their face.”
Answer: No. MDN is lead by and full of teenage Macfanboy delinquents.
Best thing to do is state your opinion and not pay attention to the wiseasses that reply.”
Thanks Queezzie. The more I read, the more I am finding that you are indeed correct. Even being a Mac user (I also own a Win notebook), I find you cannot make negative comments about APPL in any way, shape, or form, without being gang-raped – EVEN IF A COMMENT HAS MERIT. Your point is well taken.