Shares of Apple Computer fall 5% in pre-market trading

Shares of Apple Computer Inc. fell more than 5 percent in pre-market trading following a report by The Recorder on legal news Web site Law.com that federal prosecutors are looking closely at “apparently falsified” stock option documents at the computer maker.

AAPL shares are trading down 5% at $77.44 in early electronic trading before the opening bell, down from a close of $81.51 on the Nasdaq on Thursday.

MacDailyNews Take: For those who see this as found money, ’tis a Happy New Year, indeed!

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28 Comments

  1. @Tom Strong

    “Just because you like Apple products is a stupid reason to buy its stock.”

    Really?? I’d have thought just the opposite. If you like a product, then it speaks to you and therefore the manufacturer is doing something right. If it speaks to you, it’s likely to speak to others like you. So unless you’re a totally psychotic sociopath, that would seem to bode well for success.

  2. Such venom. Holiday’s over, I guess. Back to the normal brutishness.

    Invest in what you know, but don’t invest out of some sort of romantic bond, unless you don’t care whether you win or lose your money. If you know better, do better. I know many investors don’t seem to be schooled at investing at all.

    Tom, you’re right. But for a lot of people, I bet they don’t know where else to look.

  3. Tom Strong and MacPinche:

    I used to think “buying a well-run company that makes good products and leads their market category” was the way to go. But lately I’ve begun to realize that when you buy shares, you’re not really buying the company, you’re buying the Market’s OPINION of the company.

    There are lots of great companies whose price doesn’t necesarily reflect their performance. Ebay and Amazon are revolutionary companies whose price is undervalued, IMAO. Google was a freight train right out of the box, and though it bobs up and down, has stayed sky high, especially in the absence of stock splits. Apple has done well (I’ve owned their stock for over ten years), but seems to have support in the Market that’s a mile wide and an inch deep. (Watch what happens to their price on the slightest bit of negative news.)

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