To CNBC's credit they are right about it being a broken stock.
After the stock sold off on rumors and uncertainty, share holders and analysts were looking to the CC to bring some much needed certainty and share value defense. CC, despite being bullish, ignored the share price and it's tremendous sell off in spite of strong outlook from Apple. When share price diverges from fundamentals you get very bad things and the stock is implicitly broken at this point.
The CFO is responsible for not addressing share holder value, TC just delivered a record Q. The CFO has been hoarding cash since 2004, and failed to even buyback the amount of shares issued over the past year.. something that if he had done would have improved EPS.
The conferance call numbers said apple is stronger than ever,.. but TC didn't come out and say that. If he had we'd be 550+ today. People need that certainty, and the numbers looked good, but the CEO and CFO still didn't just shove the thing down everybodies throat, which at this point is what they clearly need to do.
Not exactly the kind of company you want to put your money in.... so people aren't. They will when the next product launches, and when China Mobile is announced, but right now the company has been valued so low, in spite of incredilble profits and cash flow, investors are stuck with the idea that anything other than a homerun and the company gets valued as if it failed,.. this is unique to AAPL and the mgmt has done a poor job of addressing the issue.
Apple was valued for zero growth going into earnings. Then they posted numbers that were to die for, and then their enterprise value sold off 20%. Bar was set higher than any other company to what?, retain a value far below the S&P average?
Time to protect capital and seek other equities that actually acknowledge shareholders. Overall market is broken at this point, in a consumer driven economy,... record levels of gvmt and consumer debt can only last so long. QE is temp.
Shouldn't surprise most to find out that Korean run companies are behind an aggressive and targeted attack campaign against the American run company Apple.
You are seeing them on this mag board as well. Individuals paid to bash Apple, and paid to do so through a deeply two faced marketing campaign from Apple part suppliers.
The larger problem beyond the source of the attacks is that currently Americans are supporting the efforts of the Korean companies. Spread legitimate information and do what you can to get American media to shame the efforts of the Korean companies and the motivations of its aggressively two faced attack ad campaign.
Guidance is a key issue. The CFO made poor judgement by giving the bears some food if the used their brains or clubs to beat longs senseless if they didn't want to think. Go listen to last 4 mins of conference call.
CFO chose to drop some 2B from guidance numbers and thought explaining that thou roughly would get WS to wise up, he was of course wrong. Using last years standards guidance would have been 43-45b inline with expectations. CFO screwed longs by being defiant of the assault on appe. No reason to drop any my numbers lower due to a new calculation method while everything is being turned negative against the company.
Look at comments on major articles, look at the major articles themselves. CNBC, even BloombergTV. Think the info (misinfo) fed and spread was b/c of record iphone/ipad sales? Sentiment is as important if not more important than fundamentals on WS, which of those two do you think can be controlled by the nefarious?
It was manipulated info spread by paid entities. Wonder why you see the same vitrolic postings from members with choice headlines and trigger words? (Slashed, Declined, Dead, Cuts, Losses). Clear as day gang. Rumors/Misinformation was spread at a rate I have not seen in the past 15 years of following apple.
Clear fundamentals are as strong as ever, and with Apple now valued below HPQ and inline with Dell it's clear that sentiment is the answer to why the stock price crashed and that sentiment was intentional and evil.
Apple management standing by and not stepping in, is as bad and possibly worse. Doing the right think does not mean watching somebody get robbed. TC's main motivation is doing the right thing, but he may not have figured out whats in front of him yet.
I'm sorry for your loss here.
Speak to someone tommorow about it, don't hold this all to yourself. Need to speak to a trusted friend or just get to therapist.
Your calls are worth what they are worth, no guarantee stock goes up. Most likely the calls expire worthless if you hold em to expiration.
Sell enough stock to get off of margin. At the very least get yourself to position where margin call doesn't come until share price is 350.
I'd sell 2 calls at EOD tommorow and let the other 2 run.
this your average iBear not aware that apple on the CC addressed margins (will go up next Q) and the iBear that apple management just made wealthy at expense of longs.
Open at 475 is my guess. ER was good. I think high frequency trading started a snowball AH today. CC was bullish for demand and product cycle for anyone who listened. Basically apple grew revenue at 30% year over year last Q and they had a supply not demand constraint.
I also expect 40B additional buy back to be announced. Well not really.
Nightmare for longs tonight, beat eps expectations and did 99.8 rev expectations, but b/c guidance sandbagged the stock fold off. Failure of CFO to not play Wall Street game. Going 25B buy act prior to this earnings gets solid eps beat and corrects stock and brand sentiment which are now intertwined and both devastated.
If you think 49 mil phones won't move the stock up then you need to exit your long and consider a short. If that is close to the reality if how things would pan out in such a scenario then this would be an easy short.
Lol, samdung #$%$ they can't copy before its out and can't copy be ause they being taken out of the loop. Any American that supports Samdung should be ashamed.
Hadn't thought of LTCG. Thought maybe for dividend if anything. Your theory is more sturdy.
If you are wrong or there is a surprise and if you buy OTM calls, you could see overnight 50-80% loss.
Stock is cheap heading into earnings by historicaly standards. If you expect them to have big earnings buy 10 shares.
Nearly everyone who invested in calls the last three months has been left with huge huge loses, I wouldn't step on that train to nowhere just yet. Still a chance apple beats earnings but doesn't react strongly to an upside until late in the year or until china mobile deal is done. China Mobile won't be announced until the next iPhone at the earliest.
K, maybe i'll tie my hands and hang onto the puts no matter what through earnings. Dump my Jan Puts to damn early and it cost me. Surprise WSJ I think was below the belt though.
The monthly Feb 480's, but am considering exiting prior to earnings. Volume and price action through the first 2 hours on the open Tuesday is what im looking at.
In the event we dive down i'll consider selling the puts and converting to shares.
Downside is 35 in a worst case scenario and upside is 150+.
Apple hasn't traded at 500.
Don't make it difficult. The valuation is currently a benefit for existing longs and negative for existing shorts (not many and getting smaller).
The reality comes in a few days for everyone interested. I'm a long, but do own some cheap puts as a floor.
Protect capital and stay away from calls. The market can remain irrational longer than you can remain solvent and calls are an icepick to the chest in an irrational market.
Samdung is a trash company that uses trash tactics that have fooled a few trash lovers in the states and elsewhere.
They use a paid 3rd party marketing group to spread misinformation and lies about their competition.
nVidia did this a few years back and it worked, but eventually the cat was let out of the bag.
Paid posters/bloggers/commentors went out in force for years spreading FUD on AMD and hyping up nVidia (in this case samsung).
Report the posters when you can and just be aware that the extreme amount of misinformation on Apple is bought and paid for by an entity related to Samsung.