I watch Apple’s stock with much interest. I have been in and out of the stock from late last year until the present. Each time I have made a tidy little profit. Each time I sold, I wondered why I didn’t just hold my position a bit longer. But I have a limit on my risk tolerance, and the bottom line is that I did have profits each time.
Georges Yared of Yared Investment Research has commented on the rise and fall in Apple’s stock price:
In the past two weeks, Apple Inc.’s (NASDAQ: AAPL) stock came down from a high of $127.61 to $117, and the stock settled back in and closed Friday at $120.75. As the shares were trading from the $120-127 level, the daily trading volume was huge, almost twice the normal 30 million shares traded per day. So what happened?
Apple opened its Worldwide Developers Conference 2007 this past Monday, June 15, for a week-long technical orgy featuring more than 100 very complex and technical sessions. I hear from the grapevine that the hedge funds were hoping for some sort of major announcement from Steve Jobs, Apple’s CEO. Hedge funds were driving up the shares on the hopes that Jobs would announce increased expectations for the iPhone, or that the Mac is actually taking additional market share in this June 30 quarter. Hopes were dashed as Jobs gave a routine keynote speech with “nothing dramatic.”
The hedge funds bailed out of the shares as the short-term trade possibilities were not materializing. The hedge funds did miss a very important announcement from Steve Jobs. He announced that available immediately is a Windows version for the Safari internet browser. In the first 48 hours, over 1 million were downloaded!
…
The stock took a $10 hit, a healthy, normal correction. The stock had zoomed up to the $127 level from the mid-$90s after Apple released its March 30 quarterly results in mid April. The $10 correction has actually stabilized the stock and fast money has left the building!
I’ve been resisting the temptation to sell at various times over the last two weeks. I am hoping for a nice steady climb in the price over the next few months!
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