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Apple Inc. Message Board

  • no1xc no1xc Mar 1, 2013 11:55 PM Flag

    Relax longs...

    Isn't there an old saying about the stock market, "be fearful when others are greedy; be greedy when others are fearful." Just a few months ago, WS was cheer leading Apple's rally. You heard stuff like "first trillion dollar company," "$1000 price target," etc. Funds and individual investors were afraid of being left behind in buying Apple shares. Too much money was piled into the stock in too short a period of time. Today it looks like another universe. You hear doom and gloom day after day, and you see shorts come out of everywhere like maggots crawl from beneath the rocks. It's unfortunate for those who bought too high, but it will be equally unfortunate for those who short when there isn't much downside room left. We all know how WS works - they generate gains by pushing stocks up and down, attracting smaller money to follow. Once the buying(selling) is exhausted, they flip the board and start making money on the other side.
    We know Apple is a great company with profitable business. In the last 5, 6 months, nothing about the company's prospects has materially changed. The stock has been trading mostly on sentiment rather than fundamentals. After 6 months of selling, shorts appear to be euphoric, and the resentment toward Apple from longs has become stronger than never before. It is often said when things look so abysmal that even the firmest longs start to waver, the bottom is close and it's time to buy. This has been proven to be true with many other companies with much weaker financial strength. With Apple, the upward reward is much greater than the downside risk around this point. Just analyze Apple's financial statements! Their assets are growing. PPEs are getting bigger. Earnings are stellar. And they outspend any other company on R&D, which is a particularly good sign boding more growth down the road.

    Sentiment: Strong Buy

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