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Seven reasons why the shorts love Apple stock

Apple Online Store“A common sense interpretation of Apple (AAPL) fundamentals leads most investors to conclude that this stock should go straight up. Mac sales were up 74% in October and November, the iPhone is on track to have its first quarter of unit sales of 10 million, the iPod Touch continues to gain market share among gamers, the Tablet will be released in 2010. But for some reason, the stock sits dormant in December; if only investing were so easy,” Jason Schwarz writes for TheStreet.com.

“Common sense wins in the long run, but the short run can be dominated by sophisticated trading strategies that test your conviction,” Schwarz writes. “Apple happens to be the investment vehicle of choice, not only for the longs but the shorts as well. For many of the same reasons you love Apple stock, the shorts do, too.”

Here are seven reasons why investors love to short Apple:
1. Apple is the market leader
2. Apple always bounces back
3. The predictability of Apple reduces a short’s risk
4. New media have changed the game
5. Apple secrecy
6. Apple innovation
7. Steve Jobs is the visionary of the century

Schwarz writes, “These seven reasons make Apple an ideal short play for sophisticated traders who want to make money coming and going. The chaos of it all can cause individual investors to become frustrated with the volatility.”

Full article – recommended – here.

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