AAPL: Is the run over?

“When Apple (AAPL) shares recently saw their single worst day since January, dropping over 4% in a single day and wiping out over $26 billion in market value, the reactions were mixed and often severe,” Douglas Ehrman writes for Seeking Alpha. “Few stocks have been as impacted by rapid shifts in sentiment as those of the iPhone maker, but many of these suggestions seem too reactionary.”

The unveiling of the iPhone 6 on September 9, plus the potential for an iWatch announcement, should outweigh short-term negatives,” Ehrman writes. “The dip in Apple shares should be seen as a buying opportunity as I believe shares will run higher thru the announcement.”

Ehrman writes, “Ultimately, Apple shares have upside to $110 or beyond, in my opinion, and I would take the dip as a chance to acquire additional shares.”

Read more in the full article here.

34 Comments

  1. Aha! Bing’s Law strikes again! To wit: any headline about Apple that is written as a question (“Is The Apple Run Over?” Is Apple Doomed?” “Should Tim Cook Resign?” etc. etc.) must be answered in the negative. No. Nada. Not a chance, etc, etc.

    1. Memory? Yes? The question is memory for what?

      They remember that the last time they wrote a negative story on a high achieving company, they got a lot of “hits” and attention and quotes on other sites.

      And … there editor loves it.

    2. Journalists are often ill-informed and don’t do the necessary research. Their shortcomings have become far more evident since the larger agencies cut costs by reducing or even eliminating editorial staff. In addition, large numbers of amateurs have entered the field of “journalism” with no more credentials than a computer and an internet connection.

      1. And yet, KingMel, the mainstream media use these neophytes as sources for their stories, promulgating rectal supposition as though it were fact. The state to which journalism has fallen is despicable.

    1. On day they say one thing, the next day the opposite. Seeking Alpha is as trustworthy as CNN, MSNBC, NBC, ABC, CBS, and the rest of the Lib water-carrying purveyors of proven, repeated statist failure.

      Smaller government is the answer.

    2. Can any of the media “corporations” be trusted? The sole purpose is to sale advertisement for other corporations with information tailored to a particular demographic. Find the news outlet that you like best and then look up the profile of the demographic, you then will see what you are willing to believe.

      1. None of the media can be trusted. They can only point us in the general direction of the latest melee. Fortunately, we have our personal intelligence to fall back upon. Were it not for that, it would be a replay of the Middle Ages.

  2. I’m not budging. AAPL always goes through some swings before and immediately after new iPhone announcements.

    I’m sure that within a couple of weeks these great predictors will judge the new iPhone(s) to be a failure. Then, a few months will go by and those same geniuses will be showering praise for another sales record.

  3. Maclouie’s Law is:

    If the stock runs up till the announcement it will tank after.

    If the stock tanks before the announcement it will spike after.

    It has tanked so now is a good time to buy more. I have and will on Monday and Tuesday if trend is same.

    Otherwise. Buy after it tanks after the announcement and watch it hit new highs this year

  4. IMO Apple should never have split its shares or bothered giving a dividend. Instead it should have concentrated on reducing its share count. Is anybody complaining that BRK, Google, Amazon, Nflx etc don’t bother giving dividends? Look where their share price is. Like Steve, Tim should have stood his ground.

  5. They force the share prices down intentionally just before the launch of something world changing, then sell when the prices go up. I just completed a dissertation on ‘The Sustainability of Apple Inc.’ for my MBA and have done a thorough research on it for the last 20 years. This is the current business model when it comes to Apple shares. Spit out some FUD and the shares will fall. Guess who pays the journalists to write the FUD? Shareholders like Carl iCahn care nothing about the company other than the cash it holds and is always planning on using Apple as a means to extract more money.

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