“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
I really need to start taking advantage of these temporary dips caused by the FUD.
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.
Other than the fact that it’s deceitful and dishonest…. yeah what’s the big deal?
Rumors? Lies? Not this time
I agree that it’s deceitful and dishonest. I just think people overreact to it.
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……
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.
“As a side note, Apple might be making more money from the $29 bumper than Google (GOOG) makes from its Android OS”
It bobs up?
I like it!
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.
@freefromdesign
Without people’s overreaction, the deceitful and dishonest people cannot make money. Some people has to lose money, so the others can collect the money. I just want to be on the up side.
The phone’s great. It’s the antenna that needs to be fixed. With the bad PR from CR, people like myself will wait for things to settle down before dropping $300 on a new iPhone 4.
In financial terms, if there are enough people who want an iPhone but are willing to wait until the dust settles, that poses a future risk for Apples upcoming Quarter, ending in September. The revenue and income for the June quarter has already been realized. It is that future revenue and income that is jeopardized by the controversy.
Hence the drop in the stock price. It has nothing to do with hedge funds. It’s a classic sell first, ask questions later.
If you are an investor and believe, as I do, that the stock will bounce and all of this will indeed be resolved, then you can use this to pick up shares on the cheap, but be forewarned that if there is no resolution to this problem, Apple is priced for perfection and you could have rocky times ahead.
The reason hedge funds can launch these bear raids is Apple’s maddening silence about questions or potential problems.
Although the iPhone reception problem is real, it’s a minor issue. The iPhone 4’s clarity of sound and gorgeous display, plus the chip, makes every other phone, including the 3GS, look, sound, and perform like do-do. But hedgie scumbags are going to work the stock down until earnings, when Apple’s numbers will kick as much ass as the phone.
Just wondering, would two tiny, almost invisible drops of artist grade acrylic polymer, fix the reception thing?
If I had more funds to invest in AAPL right now, I would do it.
Yeah, I have heard”fredb : Do you even own an iPhone? The problem with the internet is everyone has an opinion and ignorance is no barrier to expressing it. There is not one person with a problem with their iPhone, that cannot return it for a full refund. Simple redress for any problem. Very few have taken them up on this. Why? Because 99+% have no problem. I don’t know anyone who doesn’t protect their iphone from damage with a case, but even those who don’t use a case have written that they have no real problem. This issue is between Apple and it’s customers.
However, the anonymity of the internet allows Apple haters and competitors, as well as stock market manipulators,and hit-whoring bloggers, to pretend they are outraged and burn up the bandwidth and perhaps to dissuade future Apple customers from experiencing Apple products. If you could actually follow up many of the outraged comments, you would find a truer motive behind them.
Anyway, Today was a buy day! “
We have to admit every smart iphone has limitations. No one is perfect.
though iphone is the best smart iphone now.
Anyway, Today was a buy day!
What we should do is only enjoy our iphone, you can see how amazing the iphone is!!!
http://www.ifunia.com/iphone-column/index.html
Hey it’s very nice info, and i am glad to read this article, thanks for sharing nice info.
http://hubpages.com/hub/Pro-Cleanse-Gold
iPHone4 is so far down in the smartphone race, it’s inferior in too many functionality.
AAPL/Jobs been LYING, Denied nasty emails to customers, iFAKING signal strength, iNFLATING signals.
Drop calls, drop signals
Fraud charges have been filed against ATT/AAPL
@ Doni
Before attempting to be a troll, learn to communicate in English.
@Doni
Ironically, had Apple made the software mistake to UNDERESTIMATE the signal strength, then the user impression would be totally opposite, right?
I wonder if in that case there would have been as much tumult and hate postings.
… “LIES”. They can get by just fine with the truth … as long as they can spin it to their advantage. CR says “best phone ever, has this problem” and the FUD reports “has this problem … oh, and, btw, best phone ever“.
Yeah, a 5% to 10% kick to the price of AAPL is worth it to folk holding the stock. Be even better if they had advance warning of the CR article … but CR doesn’t leak such info. Still, it’s always good to sell at $250, buy back at $225, then watch it “bob” to $262 … all in less than a week. Free Money! YES!
Just got a monster loan.
And thanks US Congress for making this possible.
@ freefromdesign: The problem is that people are making money using MY stock, and they are doing it at MY expense. So, they “borrow” shares held on my behalf by my brokerage. They sell them short (or they naked short the stock, which is just plain criminal in my opinion, as they are selling something that doesn’t exist). The brokerage charges interest on the “loan” – I don’t get any piece of that interest. The sale depresses the share price – so if I choose to sell my shares, I’ll get less money for them. If I had a need to liquidate my stock today, I’d be materially injured by this behavior, in spite of the fact that I’m a long-term investor. And although it’s likely that the price will rebound – it always has – there’s no guarantee that it will, which means that there’s a good chance that I will be materially injured.
All that is bad enough – but when you add in the “fomenting” bit, it becomes legally defined as criminal behavior. Which will never, ever be prosecuted. Sadly.