“The Apple rumor mill has shifted into high gear. Historically, this is a normal pattern prior to Apple’s new-product launches,” Nigam Arora writes for MarketWatch. “The rumors range from the names to the colors of the new iPhones.”
“The big buzz Monday was that Apple will introduce a gold-colored phone. For the gadget lovers, the rumors are an endless source of entertainment,” Arora writes. “For the astute investors, the rumors leading to Apple product launches have historically provided significant opportunities to generate profits. Here is how to generate profits from iPhone rumors.”
Arora writes, “The Apple rumor mill sets the expectations. Expectations are quickly discounted in the stock price. When new rumors are better than the previous expectations, the stock price rises. On the other hand, when the new rumors paint a less-rosy picture, the stock price falls. The consensus of the rumor mill prior to the release of iPhone 4S was that it would be the phone with incremental hardware improvements but no major new features. The reality turned out to be quite different. ”
Much more in the full article here.
There was ZERO risk buying under $400.
3 problems with your assessment:
– If hindsight was a valid investment strategy, everyone would be rich.
– Many people were saying the exact same about AAPL below $700, $600, and $500.
– No stock carries ZERO risk – certainly not AAPL.
Buying AAPL at the par value ($0.01 per share) caries zero risk. Good luck at *ever* buying it at the par value though.
Also if the stock price ever falls to “book value” of the company then it will be virtually a zero risk purchase. AAPL came within about 30% of book value back in the dark days. There were some anti-Apple analysts (masquerading as pro Apple) that were saying Apple would go below book value and then rebound as offers came in when the inevitable take-over offers happened.
Apple didn’t get to (or below book value). People who were waiting for that virtually 100% safe time to buy missed the bottom by a LONG SHOT.
Yes, there are times to buy a stock at virtually zero risk, but in most cases it is just a cash out with no real upside.
got something.
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Years ago I bought some AAPL at $75 and saw them drop sharply in value shortly afterwards.
They did OK later though 🙂
This cat Arora is nothing but fake. Thinks he is a big genius, but he is an ASSWIPE.
Regularly talk about yourself on here, don’t you, x.
“How to profit from the new Apple iPhone rumors”
Start a “news” site 😉