Big money could be ready to flow back into Apple stock

UBS analyst Steven Milunovich “on Tuesday raised his Apple (AAPL) price target $110 (from $540 to $650) and his rating (from Neutral to Buy,” Philip Elmer-DeWitt reports for Fortune. “‘While Apple’s stock has improved,’ Milunovich writes, ‘institutional ownership has not recovered. It peaked at about 73% in April 2012 and has fallen to under 64%. Our sense speaking with investors is that many are now equal or underweight Apple relative to their benchmark, which could result in new money supporting the stock.'”

P.E.D. writes, “Meanwhile, we’re left with this puzzle: If pension funds have been dumping the stock since April, how did Apple’s share price manage to climb out of a deep hole and recover all its 2013 losses?”

Read more – and see the chart – in the full article here.

11 Comments

  1. It’s almost like stock prices going up and down have nothing to do with events or charts or analyst reports, but the independent buying and selling decisions that happen to the stock over time.

    1. Yep. And stock price has very little to do with the company’s performance. Hedging had dramatically changed the relationship between company performance and stock price, in a way that benefits the hedge funds and hurts the individual investor who just buys and holds stock. But of course the hedge fund managers could care less about that.

        1. Hey, Care. You too? When did people start using could care less for couldn’t care less. It should be clear to anyone that you could always care less. I have nearly given up trying to get folks to understand what they say.

          1. Yeh. How the heck did that ever get started!!!?

            Why can’t people understand that structure is like:
            – if they were utterly exhausted, they’d be saying, “I could go further.”
            – and if they were utterly stuffed at a wonderful dinner, they’d be saying, “I could eat another piece.”

            It’s COULDN’T, you “could” users. As in, “I have reached the absolute bottom of possible caring about ____ and I COULDN’T possibly care any less.”

      1. So, you are saying that public mood is what’s driving Amazon’s share price continually upward for five years straight without a single hiccup. If that’s the case, then Apple better learn how to control public mood as well as Amazon can.

        You know, Apple really could have been using more of that reserve cash to expand the company along the way instead of just squirreling it into foreign banks. I’m not saying to use all that money but surely Apple could have created some overseas businesses to boost revenue with that overseas cash reserve. Or does that seem unreasonable to you? I don’t quite understand why Apple can’t reveal what it intends to do with it because it would end a lot of unnecessary speculation and possibly shareholder angst.

        1. The public angst is based in fear. Most people seem to live from paycheque to paycheque and can’t imagine saving for tough times or a big project. Most will get a mortgage and consider their house as their savings. Apple is different and that scares people.

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