The Apple hedge fund slingshot is back

iphone 4 cases“Dissecting the anatomy of a trade is a sophisticated process that requires full disclosure. Most investors fail to dig beneath the surface thereby missing the real opportunities,” Jason Schwarz writes for Seeking Alpha.

“This Apple (AAPL) action on the heels of the Consumer Reports iPhone 4 downgrade is a dream scenario for hedge funds ahead of the July 20th earnings report,” Schwarz writes. “There is no better money making opportunity than the Apple slingshot.

Schwarz writes, “Apple’s pristine balance sheet, exponential growth opportunity, and innovative future product pipeline give hedge funds confidence that this stock will always bounce back after being beaten down. As a result they use any and all resources to beat it down when they can.”

Full article – recommended – here.

MacDailyNews Take: “[Hedge funds and other investors] target strong companies like Apple with lies and rumors. In fact, it works better with a strong company like Apple, because after being artificially sunk, it then bobs right back up and the shorts can have their way with it all over again.” – MacDailyNews Take, April 8, 2009

22 Comments

  1. I still don’t see what the big deal is. In the long run, these small manipulations really don’t have much of an effect so the long term investors aren’t being hurt. Short ter traders love volatility so they should like it too. People are overreacting.

  2. Those bastards are giving me ulcers. I’ve lost all the gains I’ve made and now just barely got my head out of the water. I think I am up about $20 over what I actually invested. I need a drink……

  3. I bought in to AAPL when it was at $16…I would like to take this opportunity to sing “Everything’s Coming Up Roses” to the entire Microshaft FUD Machine.

  4. Call the 4 a failure, it is the best phone money can buy and the competitors can’t touch the App Store with a million foot pole. I have only had my 4 for a full day now and love it. I experience all kinds of signals in my day and guess what. This phone connects where my 3gs would’nt. There is a spot on the way home where my 3gs always dropped pandora because of signal loss. Not today with the 4.

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