“The day before Apple reported earnings,an analyst came out with a bold statement and recommended investors sell Apple before going into earnings on July 26. He also cut his price target from $110 per share down to $85 per share with a Sell rating slapped on for good measure. He said, ‘Apple has peaked under the leadership of CEO Tim Cook,'” Jay Somaney writes for Forbes. “I am not a fan of Tim Cook’s leadership skills either however that research report seemed unduly harsh as far as the rating and price target.”
“The next day, Apple reported earnings and investors realized that things were not as bad as the sellsiders were expecting and the guidance was even slightly higher which is very atypical of Apple’s usual subdued forecasts,” Somaney writes. “Apple shares are up almost 11.5% in the two weeks or so since that report and have not looked back. So, the question for investors is whether the worst is behind us and is Apple stock ready to continue climbing higher into the launch of the iPhone7 in early September?”
Apple Analysts are “now sheepishly trying to put out optimistic reports on Apple post its June quarter results and combined with the success of Tim Cook’s trip to India and China, things for Apple and its investors have finally started looking up, no?” Somaney writes. “Finally, maybe, just maybe, peak Apple was just a pipe dream for the dark side (shorts)?”
Read more in the full article here.
MacDailyNews Take: Once again:
AAPL is like a buoy. Quick, it’s back on the surface! You there, analyst, and you, too, swim down and tug on the chain! Drag it under… lower, lower… Good! Now, quick, everybody jump on, and we’ll take a ride back up to the top again! — MacDailyNews Take, January 9, 2012
At the most basic level, it’s extremely simple: Pump, then dump. Foment, then buy. Rinse, lather, repeat as the SEC sleeps.