“Apple, as hedge fund managers are well aware, is one stock that always bounces back,” Philip Elmer-DeWitt reports for Fortune.
“It’s hard not to be cynical about Wall Street when you see a chart… which traces Apple’s (AAPL) share price over the past four weeks,” P.E.D. reports. “It not terribly surprising that the stock has shot up nearly 20% in the past two weeks to close at an all-time high Friday of $422. The iPhone 4S is selling briskly and the company is expected to report record earnings on Tuesday.”
“What’s harder to rationalize is why it fell more than 16% in the two weeks before that to hit an intraday low of $354.24 — the day the iPhone 4S was unveiled and the day before Steve Jobs died,” P.E.D. reports. “I’m reminded in times like these of Jason Schwarz’s Apple: Seven Reasons Shorts Love It, first published in 2009.”
The meat of it can be boiled down to two sentences:
“If you can keep a good stock down then you are able to load up for the ride back up. It’s like a slingshot — the harder you pull, the more propulsion you generate.”
P.E.D. reports, “Schwarz, who publishes a popular investment newsletter, is no Zuccotti Park protestor. He’s a Wall Street insider who knows something about how the game is played.”
Read more in the full article here.
[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]