“In one of my previous articles, I argued that Apple (AAPL) might have become a speculative stock,” Kim Klaiman writes for Seeking Alpha.
“I have been warning for a while that the stock has gone up too far too fast. When the stock was going up almost every day for no visible reason, I asked a simple question: what do we know today that we didn’t know a month ago?” Klaiman asks. “Some people would argue that funds were buying the stock in anticipation of the dividend. That argument simply doesn’t hold. A $10 yearly dividend means nothing for a stock that can move that much in a matter of minutes. Are you telling me that the stock rallied $130 in one month in anticipation of a $10 dividend?”
Klaiman writes, “Today after the stock is down from $644 to $530, I must ask the same question: what do we know today that we didn’t know a month ago that caused the stock to lose $120 Billion of its market cap? The obvious answer is: speculation. When the stock is going down now almost every day, many Apple bulls would argue that the stock is manipulated. It is interesting that they didn’t think it is manipulated when it was going up at the same speed. The simple question is: how can someone manipulate a $600 Billion stock?”
Read more in the full article here.