“When a stock is under-owned and good news comes, there are plenty of buyers to move the stock up,” Nigam Arora writes for Forbes. “On the other hand, when a stock is over owned, there aren’t many buyers left to push it higher and even the slightest bit of negative news can push the stock down.”
“According to Morgan Stanley, the top 100 institutional investors cut their holdings of Apple in the first quarter of 2014. Morgan Stanley also says that Apple is the only large cap technology company with institutional ownership less than its weight in S&P 500,” Arora writes. “A fund manager does not put his job in danger by performing close to the S&P 500 index. For this reason, many fund managers hold a portfolio that correlates well with S&P 500 with a few major differences. The main difference right now is that Apple weighting in many funds is lower than its weighting in S&P 500.”
“Institutions own about 62% of Apple stock. In comparison, institutions own about 87% of Google stock,” Arora writes. “Apple is like a rocket with plenty of fuel sitting on a launch pad. Until there is a trigger to ignite the fuel, Apple stock is not going anywhere. The trigger may come in the form of a new product that engenders a big ‘wow.'”
Read more in the full article here.
MacDailyNews Take: If by “not going anywhere,” Arora means “consecutive sessions of setting new 52-week highs”: More, please.
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Doncha just hate it when the article you wrote last week suddenly becomes irrelevant?
haha laughing all the way to the bank!
Have any of you heard of the “Rothschild family”?
it is about a conspiracy theory about money.
What if it is true and there is an important group of people that doesn’t want apple to have as much money to became a bank competitor?
Or restraint apple’s money power so they can’t ever try to withdraw all its money?
What if all those ANALyst are paid to try to bring down apple’s stock? or keep it controlled?
..mmmm that’s too complicated, those ANALys are just $tupid. (occam’s razor)
The Rothschild conspiracies are old and tired… besides, if they wanted to keep Apple from becoming a bank, manipulating the stock would be irrelevant. Apple already has enough cash to become a bank.
Wall Street=Analysts=SCAM