Hedge funds and Apple

“Last year, Apple, one of the Four Horsemen of the Nasdaq, was a superstar, going up no matter what happened elsewhere in the markets. This year, it has not been so fortunate,” Tim Melvin writes for RealMoney.com.

“In comments today, Jobs blamed the price decline in part on the actions of an unnamed hedge fund. Those unnamed hedge funds get blamed for a lot of things these days and have been cited as the cause of virtually every problem in modern society. As it turns out, this time it just might actually be their fault,” Melvin writes.

Much more in the full article here.

[Thanks to MacDailyNews Reader ” JES42″ for the heads up.]

20 Comments

  1. are so into the company ( well deserved of course )

    It makes for a very easy target for naked short selling.

    Also makes it easy to print stories about jobs dying.

    Face the fact folks people driving cars made of of gold didn’t get there playing fair. It is a rigging game always has been always will be.

    Lucky for us this elephants are so huge that sometime that Sh*t more money than you can make in a lifetime and that is what we are all fighting over.

    BRING BACK THE UPTICK RULE.
    REGULATE HEDGE FUNDS.
    START SENDING PEOPLE TO PRISON.
    FIRE EVERY AT THE SEC AND MAKE IT ILLEGAL FOR THEM TO EVER WORK FOR PRIVATE INDUSTRY, PAY THEM WELL
    HOLD NEWS REPORTERS LIABLE FOR REPORTING LIES
    GOT THAT CRAMMER YOU SOULLESS JOKE
    CNBC SHOULD BE FORCE TO PUBLISH A CHART OF ALL ADVERTISERS, EMPLOYEE HISTORY, AND ANYTHING ELSE THAT WILL CLEARLY SHOW THEM AS CROOKS ON A STICK.

    the good news is that Apple earning will become so
    overwhelming the LONGS will have the last laugh.

    so the the FAT cats who would sell their own baby for a take over insider trade keep using the world as your ATM

    rich people such – John Waters

  2. @Whatever
    If fat people can sue mcdonalds for being fat…. or people suing dunkin donuts for not having common sense and burning themselves….. I definitely think we can sue the hedge funds.

  3. If you are unwilling to bloody the nose of the “unnamed hedge fund” by buying back your stock when they short your stocks down, you are just inviting them to come back and do it again.

    If Apple took a billion dollars and pulled their stock up earlier this year, they would be shorting someone else’s stock now.

  4. Calm down everybody.

    People can only manipulate a stock downward for a finite time. If they want to make money, they will eventually have to manipulate the stock upward. This creates buying and selling opportunities for themselves and perceptive investors.

    If you think AAPL is artificially depressed, then buy more stock. In a few months, the hedge funds will artificially inflate the stock. Then you can sell and profit with them.

    The one thing hedge funds cannot do is stop the fundamentals. AAPL will make a ton of $$ from the iPhone and the stock will eventually go up. I believe that a trailing PE ratio of 30 is way low for the amount of profit from 10M iPhones.

  5. Naked Shorts are well illegal. Doesn’t stop the hedge funds, pension funds or corporate investment portfolio managers form doing it. And the only ones ever prosecuted for Naked Shorts has been individual investors. I think the SEC needs to start enforcing some of the rules they have and start drying up most if not all the artificial leverage that has been allowed into the market. If you going to but 1000 shares of AAPL at $120.00 per share you need to have the $120,000.00 to pay for it an not just 40%-60%. The stupid part is you can buy a commodity with just 4% to 9% of the cash needed to buy it.
    I could also go into the Derivative and Indexed Options trading and it’s negative effect on the markets but, that would be for a different rime

  6. @Demon: Naked shorts are not illegal in the USA, yet. They damned sure should be. Naked Short Selling (shorting a stock you don’t have control of) is the exact reverse of buying a stock on margin, and that was banned during the Great Depression.

  7. Stock market is nothing more than white collar gambling. Does anybody really believe it isn’t largely controlled by large…(too large) hedge funds. The market doesn’t reflect the true worth of a company…

  8. @ Tommy Boy

    Shorting a Stock is not illegal, but a Naked Short is Illegal at a point.

    Naked short selling, or naked shorting, is the practice of shorting a stock without first borrowing the shares or ensuring that the shares can be borrowed. Naked shorting is not necessarily a violation of the federal securities laws, and can contribute to market liquidity, but is illegal when it drives down stock prices. In 2004, the Securities and Exchange Commission (SEC) issued “Regulation SHO” seeking to curb abusive naked shorting. Concern about abusive naked short selling has increased during 2008, and in June the SEC issued a temporary order restricting short-selling of the shares of 19 financial firms deemed systemically important.

    In July 2006, the SEC proposed to amend Regulation SHO, to further reduce failures to deliver securities. SEC Chairman Christopher Cox referred to “the serious problem of abusive naked short sales, which can be used as a tool to drive down a company’s stock price.” and that the SEC is “concerned about the persistent failures to deliver in the market for some securities that may be due to loopholes in Regulation SHO.
    In June 2007, the SEC voted to remove the grandfather provision that allowed fails to deliver that existed before Reg SHO to be exempt from Reg SHO. SEC Chairman Christopher Cox called naked short selling “a fraud that the commission is bound to prevent and to punish.” The SEC also said it was considering removing an exemption from the rule for options market makers. Removal of the grandfather provision and naked shorting restrictions generally have been endorsed by the U.S. Chamber of Commerce.
    SEC Chairman Christopher Cox in March 2008 gave a speech entitled the “‘Naked’ Short Selling Anti-Fraud Rule,” in which he announced new SEC efforts to combat naked short selling. Under the proposal, the SEC would create an antifraud rule targeting those who knowingly deceive brokers about having located securities before engaging in short sales, and who fail to deliver the securities by the delivery date. Cox said the proposal would address concerns about short-selling abuses, particularly in the market for small-cap stocks. Even with the regulation in place, the SEC received hundreds of complaints in 2007 about alleged abuses involving short sales. The SEC estimates about 1% of shares that change hands daily, about $1 billion, are subject to delivery failures. SEC Commissioners Paul Atkins and Kathleen Casey expressed support for the crackdown.

  9. the 3 day settlement rule is BS

    how for can they drive a stock in 3 days?

    AAPL prob 20 pts 100,000 x 20 = 2 mill / buy 40 people “in on it” you get a $50,000 pay check for 3 days work.

    Same with the banks when it is their money it is removed from your account instantly, when you deposit it takes 5 days to clear …… mmmmmmm

    People in charge of making this shit up had one thing in mind SCREW YOU

    Kill the FED!
    KILL THE ELECTORAL COLLEGE
    Kill the war Machine.
    Kill Microsoft

    and long live

    Jimi Hendrix
    John Lennon
    Martin L King
    Baba Ram Dass
    Alan Watts
    Krishnamurti

    and everyone else out there that cared for someone other than themselves.

    Serving ice cream on a diamond spoon leads to war.

    open your mind and read some Loa Tzu

    rant open
    \

    discloser

    LONG AAPL

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