Say that earnings are stellar. Market will just worry about next quarter. Apple can't win at this point. It's a catch 22. I've never seen this much negativity. I mean pounding for months and months.
Only Tim Cook could overcome all these nagativies by coming out saying something loud and telling those executives stop selling all their shares. If this happens to AMZN, Jeff Bezos would be all around the media already. Unfortunately, Tim Cook wouldn't do it and it's absolutely unfair to the shareholders.
Yes, definitely a lot of negativity. BUT....stellar earnings means more cash for the company. All they have to do is just to keep adding cash, and at some point, the stock price HAS to reflect the reality of this INFLOW.
There was an interesting article by By Brad Cornell, Professor of Finance at Caltech, concluding that "Apple Inc. (AAPL) Is Worth $607 Assuming No Inflation Adjusted Growth" (I put it in quotes so you can find it and read it. Basically, if AAPL continues to grow only at the measly rate of inflation rate, meaning essentially standing still, its stock price is worth $607/share. Now I agree that the growth is slowing from its massive pace, that the margins are contracting, but the company is clearly STILL growing, and even if it grows a couple of percentage points above inflation, it'll be worth considerably more than $607. It's simple math. Still considerable growth in China. Just introduced iTunes in 50 more countries. iTV. Possible move to DOW. etc etc They don't have to do much to grow above inflation. Looking at 2 or 3 years down the road, I see the stock price considerably above where it is today. JMHO.
They call it investing in the future. The present in meaningless for amzn according to its worshippers. If enough people believe in it, and obviously there are enogh, the result is what you see. As had been proven in the past, empires collapse. Apple brought uppon itself a lot of negative attention with its endless litigation especially the anti samsung look which infuritated lots of people. And once negativity creeps in, its hard to fight it. I think some money if flowing out of aaple into nok. Nok has still many followers. After Jobs, Apple might not be regarded as something inspirational Tim Cook is everything but that. He is a bean counter with zero vision imho.
I'm still trying to figure out what the negative news is. China is growing, Indonesia is growing. Big enough markets for Rimm, Samsung, and Apple, no? Everyone i know owns an Apple product and would only change what the have for more Apple products. So, where is the negativity other than it dropping like this for no reason?
Bob Pisanni has a laundry list that he keeps going over. He says ATT says all smartphone sales are down, iPhone and iPad sales are down, no special dividend, Nokia China Mobile deal and some other stuff that I forgot.
most of the shorts are in the israeli reserves. send them packing and we will get some peace and quite and a break from negativity. Then the price will be based upon the following:- low PE ratio, great products, great cash reserves, great R & D, great sales, great revenue, great new products, market expansion, products recognisation, dynamic management etc. etc. and aapl will rise like a rocket going to the moon.
Sentiment: Strong Buy