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Apple Inc. Message Board

  • investora2z investora2z Apr 20, 2013 5:13 AM Flag

    Overdone, but still not done

    The initial fall in Apple was based on the basis of pessimism about future fundamentals. But recently, under the garb of expectations etc., the kill has been overdone. The fall from above $430 to $400 a few days back was with humongous volumes of 33 million shares. The previous low of $419 was pierced with force and disdain. If one looks at Apple in isolation, it has a dream balance sheet with loads of cash and even the growth is great. Then come in the analysts, and start comparing it with the future. The future, by the way, is as uncertain for the competitors as for Apple. About the product cycle, innovation etc., Apple is as likely to innovate as any one else. Google Glass is not for the masses, and Blackberry can't run over Apple in a few quarters. People expect classy stuff from Apple but disruptive technology is not a mandate for its survival. Growth will definitely depend on innovation. But survival? Apple has surely done enough for that for the foreseeable future. Most importantly, it is continuously trying to innovate and also attempting to bring about improvements in existing products. It is on the lookout for acquisitions as smaller companies sometimes hold the key to future disruptive technologies. Some technologies, which were not valued when they were created, later became the basis of multi-billion dollar enterprises. e.g. Bascom Research, a subsidiary of Document Security System (NYSE:DSS), which is claiming in a patent infringement lawsuit that the essence of the technology being used by Facebook (FB) was created by them. The lawsuit is potentially worth an insane amount of money and DSS will benefit from it significantly. For Apple, innovation is the key for future positive sentiments, but the current prices appear to be a disrespect to the giant. Tim Cook has to do something about it. Technically, if it slips below $370 decisively, then the cut will be real deep ($320). That, will be an insult.

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