BUDDY WHO WORKS ON WS SAYS MARGIN CALLS BECAUSE OF AAPL COLLAPSE ARE STAGGERING
main street joe is getting hit very hard by margin calls during this collapse in aapl shares because the utter confidence in this stock meant that most small time investors kept averaging down on margin as the stock dropped because they were convinced the once daily winning stock would start heading back up to new highs. this time it did not, and has wiped these people clean out. the $10 down on friday pretty much sealed the deal for most longs on margin.
apple stock has left a trail of carnage and death in the recent weeks.
This is the most important post I have seen on this board today, and this is just as I had expected. People, this stock collapsed because of massive massive margin calls and all-out panic selling all at once.
Anybody who can step up and buy during this event (and especially after the most profitable company in the world is down almost 40% in 4 months) will make 10-20% over the next 1-2 months.
These poor people HAD to sell out and, as is inevidably the case with margin calls, they are going to miss the real bounce back since they were margined out.
It's not a problem to buy odd lots today, but you still need 100 shares to write a covered call. A stock split would help make shares more affordable and put shares in the hands of people that love Apple's products. Otherwise, the big boys can always whipsaw this stock.