The Stock Market and Investing

cyclone4

Something is rotten in the "State of Apple". I do not really understand this huge collapse. However, I am MUCH more concerned about Len. It's not like him to be absent for so long during this collapse. I pray that he is OK. I know that he was diagnosed with a mild case of diabetes a couple years ago and I pray that he has not taken a turn for the worse.

gagrice

It is not just Apple in the toilet. It is the whole stock market. Every Dow stock is down. I have 2 out of about 30 stocks in my two portfolios that are in the green. Are we headed for another 2008 style crash? I stuck out the last one and am close to the late 2007 highs.

cyclone4

Gary,

We are NOT going to have another 2008 type crash. Far from it. The banks and other facets of the economy are in MUCH better shape now. Today they are once again worried about Europe. What else is new? One day Europe doesn't matter, but the next it does. It's all manipulation.

imidazol97

>Are we headed for another 2008 style crash?

Of course not. The current president is in charge. He "saved" us from the great depression. He will lead us through to the promised land. Grin.

This kind of stuff is why I didn't buy into Apple. I used to buy INTC and hold it for longterm and then when the price was high I would sell. Eventually I ended up with a block where the price never went higher and I've held it for years. Since they send a dividend check now, I probably won't sell.

I just don't have the stomach for the big time ups and downs.

AND the current eco situation still makes me jittery. Now we have learned that Medicare Advantage programs go away as of 2012. But they're going to try to keep Seniors from figuring out more cuts in Medicare are occuring due to the ObamaCare by using an 8 billion dollar slush fund as a campaign tool to extend Advantage coverage for 1 year only to try to fool them past this election. Add to this the increase coming in capital gains and lack of confidence by Seniors and others due to Medicare support being taken out by $500,000,000 in cuts and $8,000,000,000 in campaign feigning of continued coverage, I see people disinvesting in riskier investments.

The pressure due to low interest returns trying to keep the cost of borrowing low to help the books look better has pushed some people out of interest-based investments into the stock market. As I read my reports from Mutual Fund companies, I keep predicting for myself how people who hold lots of investments are going to handle the lack of confidence as well as the tax changes as well as the risk in the stock market. I didn't take that to heart in 2008 as I should have. But I had a large amount in fixed annuity in sheltered investment.

gagrice

I have tried to find out from Kaiser how the Obamacare cuts to MC will effect us on the Senior Advantage plan. All they say is they are working on it. I did read about the $8 billion Obama is trying to inject to keep it going until the election is over. Hopefully the Supremes shoot the whole HC debacle out of the water. What are the chances of getting adult leadership in Washington DC?

I do have half a notion to divest a lot of my stocks until we see what November deals US. I don't see anything decent to invest in.

cyclone4

It's obvious now that a huge reason for the Apple collapse is the expectations for iPhone sales. The iPhone sales at Verizon and AT & T were not as robust as expected based on earnings reports from these two telecom giants. Isn't it natural that sales will slow down quite a bit after the first quarter when the iPhone was introduced?

I guess we'll see what Apple has to say this afternoon when its earnings report is released. Somehow, someway, I think that Apple will surprise us with a bullish report especially now that the stock has sold off more than 80 points from its high.

imidazol97

>Apple will surprise us with a bullish report especially now that the stock has sold off more than 80 points

I hope for the benefit of those on this board brave enough to be invest in APPL that it does just that.

Long ago, I was an Apple afficianado. I purchase a Mac Plus. I did desktop publishing easily with it. I then purchased an LC III. Then I had a next step Macinosh. But I kept realizing Apple was giving less computer power but always offering a little more at the next, frequent replacement computer offering. Everything cost more than in the PC world, hardware and software. But the dribble effect got to me. Apple could have produced a cutting edge product in computing each time at a good price, but didn't. IT was always just enough to be interesting and enticing, but the touting the next great step always there a day after the current new product.

I left forever. But I see the same dribble effect. Always enticing the faithful back to buy the next great producct that's always a little bit lacking as soon as the product is announced.

cyclone4

I left forever. But I see the same dribble effect. Always enticing the faithful back to buy the next great producct that's always a little bit lacking as soon as the product is announced.

The only comment I will make here is that one cannot argue with success. The model used in introducing their new products over the years has worked to perfection.

imidazol97

>cannot argue with success. The model used in introducing their new products over the years

And you are right about that. I just have a different viewpoint but mine is from heritage products. The phone, pad, book world is different from the computers with which I dealt. They certainly won't miss my few dollars. And like the market, success climbs a wall of worry.

Interesting read for me: http://wallstcheatsheet.com/stocks/apple-earnings-your-cheat-sheet-to-wall-stree- t-analyst-chaos.html/

Kirstie_H

I'm also wondering about the effect of reliance on upgrade purchases, rather than new-to-Apple consumers. Many of the people who are Apple product aficionados have already purchased the i-products they desire. Those who aren't, aren't likely to purchase them in the first place. Thus, Apple is relying largely on consumers upgrading their current products, unless there's a new hardware device coming to market that I'm not aware of (which could be the case).

My S.O. loves all of the i-products. He has the iPhone, iPod, iPad, and 2 Apple TVs. The only i-product I own is a hand-me-down iPod from him that's a good 5 years old. So, even from a hard-core Apple lover, they're only going to get the rare $ from upgrading devices.

iTunes? Well, we long ago ripped music from our CDs, and then purchased the music that we didn't have. We buy the occasional song or album, but most consumers have built up a pretty good library by now, I'd suspect, and I wonder if the new-to-market music sales coming out can generate enough revenue.

Another issue that all providers have is licensing. Some of the very popular HBO, Showtime, etc., series come out on DVD before they're available via iTunes download. We're waiting for Boardwalk Empire season 2, which has a DVD release date, but not an iTunes release date yet. Whichever comes first, and I suspect it will be the DVDs, is how we'll purchase. Sometimes content owners are slow to release content to iTunes, and that may affect sales.

I'm sure Apple has accounted for these factors in their projections. Just pointing out some limitations that may affect earnings.

kyfdx

There was a huge run-up in Apple's stock price in the first quarter (along with a lot of other stocks...)

While there may be fundamental reasons for the price decline, a lot of it could be simple profit-taking..

Our 401Ks, which are 95% equity-invested were up around 12-13% for the first quarter alone... (dropped plenty since March 31st, though...)

gagrice

The model used in introducing their new products over the years has worked to perfection.

Only when Steve Jobs was at the helm of Apple. They were on the verge of bankruptcy until Jobs returned the end of the 1990s. The 80s and 90s were off years for Apple. Now they are riding high on the i-products alone. I will admit the new iPad is tempting for me.

cyclone4

Kirstie,

You bring up some good points but you are forgetting about the still barely tapped international market for Apple. This is especially the case in China. Also, what about the millions of people even in the U.S. who will be upgrading from a standard phone to a smartphone? A good percentage of these folks will be upgrading to an iPhone.

Kirstie_H

I wasn't intending to provide a comprehensive analysis of Apple with my post, because I can't. Good point about the international market.

The US market - again, there are plenty who will upgrade from a standard phone to a smart phone, but anyone who still has a standard phone is NOT Apple's key consumer, and they can only count on them for a one-time purchase. If they haven't been bitten by the Apple bug yet, or even the smartphone bug, they're not likely to be strong, repeat consumers.

The international market may be HUGE.

gagrice

I wanted into the Smartphone realm until they limited the data, making it cost prohibitive for all but business use. I have a difficult time justifying $45 per month for Internet at home. For me to add another $30 for a lousy 3 Gb of data is not going to happen. Far as I am concerned it is for people with more money than good sense. But then I a still on the Sprint Pioneer plan and spend less than $10 a year on Cell service. That and I want to survive the collapse of society. Cell service is way down that list.

PS
Verizon does not let you carry over your unused data to the next month. That was the final straw. So let Apple sell their iStuff to the rich and those on welfare.

Kirstie_H

Well... I wouldn't call us "rich," however, my SO does have an iPhone, which he loves. I don't have one for a few reasons - I have been with Sprint forever, and at last renewal, iPhone wasn't available, but they still offer unlimited data. I don't care about call minute limits or text limits, but I need the unlimited data so that when we go away for weekends, I can still provide the same great service to our forums members (you're all very welcome ).

I also find that I need a physical keyboard. I don't know why, but I have a terrible time with the on-screen keyboards. I have tiny fingers and I can use a tiny keyboard, but I think I need to feel the "click" and the key going down in order to type well.

I am prepared, by proxy, for the collapse of society. My parents (well, my mom) has stockpiled toilet paper and water, and a bunch of canned food. The supplies all live next to my dad's shotguns. For years I didn't have the heart to tell my mom that, during the upcoming armageddon that will be so devastating as to cause a toilet paper shortage, in-home electricity is likely to be scarce, and they do not own a manual can opener. Blowing the lids off the canned foods with a shotgun seems counterproductive. That's where we come in - I have two. (My dad, aka "the hillbilly professor", can shoot, clean, and cook any critter including groundhogs, so we're set for meat.)

cyclone4

Verizon does not let you carry over your unused data to the next month. That was the final straw. So let Apple sell their iStuff to the rich and those on welfare.

Gary,

I am neither rich nor on welfare, but I enjoy having some fun. What are you going to do with all your money? Yes, I know you will answer that you will leave it for your children and grandchildren, but come on. You need to have some enjoyment. Everybody is going to end up in the same place. Live life to the fullest!

cyclone4

Well, it looks like the worry for people owning AAPL shares is finished. More than 35 million iPhone sales alone. Basically everything exceeded expectations.

Kirstie_H

People have different ideas of "enjoyment." My parents are quite comfortable in their retirement, but they are still very cheap about some things that just don't matter much to them. My mom still shops for the lowest price on grocery items, they only have one TV with cable, and they don't replace any appliances or gadgets just because they're out-of-date - they have to be falling apart or non-functional. They have a non-smart phone (its technology is compatible with the users' level of skill). However, they provided an all-expense paid vacation to a resort in Mexico for themselves, their kids, spouses, and grandkids over Christmas - 15 of us.

Do what gives you pleasure, not what others think should give you pleasure.

anthonyp

Whew the wait is over, and my trade turned out fine---this time-- Tony

cyclone4

People have different ideas of "enjoyment."

Yes, I totally understand, but my motto is that you only live once. There is no way that I could live with myself being that tight and that concerned about the future. If the world blows up at some point, it blows up. I believe, there is something far greater awaiting us than what we have in this life. Even if I am wrong and there is no afterlife, so what? I try to enjoy every day that I am here "my way" as Frank Sinatra sang on one of his famous songs.

cyclone4

Fantastic Tony!! I am very happy for you. I talked to my broker earlier today to get her feelings about buying more AAPL shares at $15 lower, but we both chickened out. I have enough.

anthonyp

I hope everyone takes this aapl situation to heart.....It is a shame that the securities market is so focused on one stock, that it could torpedo everything if things turned out differently than they did...

This represents a poor future for securities,and for the people who do not care to be `gambling` with there retained funds or `savings`. Apple is such a unique company, and to have the manipulation so un controlled , and the volatility what it is ...Just think having swings of a hundred billion over a short time period.....Take this to heart, and remember Tony

gagrice

I would go with Sprint, however their data service is very limited around here. I would have to travel a lot to justify the $80 per month for unlimited data on Sprint. I also lean toward a ultra book rather than a Smartphone or tablet. Touch typing on a virtual keyboard does not get it.

We don't store a lot of food etc. We could probably live at least a few months without going to a store. The rabbits would no longer feel safe in my garden for sure. Electricity and water would be an issue. My wife is a nut about having enough TP if they ration it. We have at least a couple years supply. We were both raised in VERY poor families. So having plenty does not mean you are wasteful.

gagrice

We do enjoy life. We live in a virtual paradise on top of a mountain. We did not skimp on our home. Or our vehicles. Though we tend to keep things a long time. I used to be a technology junkie. I am in the process of cleaning out my storage that I have had for almost 20 years. The amount of worthless electronic junk and computers is mind numbing. I will have at least two PU loads going to the recycle center. As much as I like the latest and greatest, at 69 I can live without all those things.

gagrice

Amazon is trading in early hours up $32 per share. AAPL slightly down. Samsung became the largest supplier of Smartphones. If I bought one today it would be the Samsung Note. That phone is selling great according to Costco.

Kirstie_H

Amazon just reported an increase in gross margins.

http://finance.yahoo.com/news/amazon-soars-digital-sales-boost-123205620.html

cyclone4

Yes, as Kirstie stated, AMZN came out with a blowout earnings report yesterday afternoon. Traders loved it and it shows in the market action today.

I wish we could hear Len's thoughts about AMZN. I use Amazon to purchase items all the time but personally, I am MUCH more comfortable owning AAPL shares. I imagine that AAPL will be at the $700 handle by the time of the next earnings report.

gagrice

Clinton's suit against Microsoft led to a big crash of MSFT and arguably burst the Dot.com bubble. Will Obama do the same with Google?

Federal regulators escalated their antitrust investigation of Google on Thursday by hiring a prominent litigator, sending a strong signal that they are prepared to take the Internet giant to court. The Federal Trade Commission is examining Google’s immensely powerful and lucrative search technology, which directs users to hundreds of millions of online and offline destinations every day. The case has the potential to be the biggest showdown between regulators and Silicon Valley since the government took on Microsoft 14 years ago.

Then as now, the core question is whether power was abused. The agency’s inquiry has focused on whether Google has manipulated its search results, making it less likely that competing companies or products appear at the top of a results page.

http://www.nytimes.com/2012/04/27/technology/google-antitrust-inquiry-advances.h- tml?_r=2&hp

fintail

I thought this was discussed before...did MSFT really founder because of the Feds, or because of lackluster products, wasteful product development strategies, and an organization that is likely top-heavy? I don't see the conspiracy here, heck, I'd hardly call Gates an enemy of the Dems either.. The dot com bubble burst because it was indeed a bubble - it was empty, there was no substance behind most of the overvalued entities.

Google started on this ethical "not evil" PR scheme back in its early days, but I doubt anyone could argue they've held themselves to those claims.

gagrice

The question is why did Clinton DOJ go after Microsoft? There is NO doubt it hurt the stock price. Track the lawsuit. And I did say arguable on the Dot.com bubble bursting.

I don't see any justification for attacking Google. Just glad I don't have any of their stock.

fintail

MS was hardly a pinnacle of ethics, and the DOJ isn't the only body to have chased them - they've been targeted around the world. Maybe the stock was overinflated and needed to come down anyway - it was the beginning of a stagnant time for them, with failed products and not a lot of announced vision. What the markets do and what is reality aren't often linked.

I'd be the most leery of google tracking internet usage, and turning it over to anyone with an illicitly-gained badge.

laurasdada

Hello, Lurkersdada here... Back from a week in Atlantis. Remember Ross Perot's, "Giant sucking sound?" Not NAFTA, rather what Atlantis did to my meager fortune. Still, a large, lovely resort. Lots of fun in the waterpark, son and I swam with the shrimp cocktail (which really should be called dolphins, because that is what they are) and SNUBA'd. Played blackjack and won, but failed to follow my rule of "The only way to walk away a winner, is to walk away a winner." So, technically, I lost. But, ran into my best friend from childhood who was there with his family (it's a small world, after all) and we gambled together. So fun was had by all. Although Dennis Rodman wasn't smiling when I saw him. Nice people everywhere, and generally an attractive crowd at Atlantis.

So, I did some selective catching up here and saw Tag's hasta la vista, baby note. I didn't see the postings that led up to his sad sayonara, but 'tis sad as this was quite the fun and friendly (still is, of course) chat. Tag, if per chance now you are in read-only mode, I enjoyed and admired your investing skills and disciplines. I have no doubt your wins were wins and your losses were (painful) losses. At least we'll always have Gilligan's Island (memory tester)!
I hope that time heals all wounds and that the summer breeze blows you back this way some day.

As for my stock market and investing, the password is "Sell." Not as in panic, rather to pay taxes, bills and for vacation. It seems cash is a four letter word in my life the last year or so, as in we don't have enough (much going to 401k and 529 plans, truth be told). Worry not, no Chapter 7 or 11 (nor eponymous franchise ownership or fun at the Craps table) here, just sad to raise my final glass of Sam Adams ownership. At least I still have the hat, mousepad and bottle opener they enclosed with annual reports of past.

Hit a killer pothole on the highway the other night with the Jag. I was sure it would be new tire/rim time, but all seems well. Looks OK, TPM hasn't signaled 15 yard penalty. Would it be nuts to trade the Jag for a BMW 328xi Coupe? Love the Jag, washed it today, but I worry about next winter, I"m losing use of the "winter beater" Lexus. Thinking of buying my own winter beater, but four cars and two car garage? Gotta love first-world problems.

Ok, done with the late night rambling. Hope all is well with all. Good night, Tagman, wherever you are. Oh, yeah. You're in Malibu (I was in Pacific Palisades back in November, visiting la familia. I became an Uncle again!).

Go Red Sox!

anthonyp

Hi DaDa

Always enjoy you posts, and this one was a good one for sure I miss Tag as well, and further wish you chimed in more often....Tony

cyclone4

Dada,

You are one of a kind. Has any company offered to pay you mucho bucks to be a writer yet? As Tony stated you have an amazing talent. Btw, is Atlantis in Vegas? Call me stupid but I am not really sure since I haven't been to Vegas in at least 7 years.

I'm watching the Red Sox game as I write this message and they are losing to the "other Sox" in the top of the 7th, 3-1. The other Sox pitcher had a no hitter until this inning. Maybe the Red Sox will come back here and finish the road trip at a perfect 7 and 0. It was a week ago yesterday when they were left for dead as they blew a 9-0 lead against the Yankees.

gagrice

I would think he vacationed at the Atlantis Paradise Island in the Bahamas. I took a tour of the place with a travel agent friend. It is spectacular. Don't think anything I have seen in Vegas is quite the all around vacation destination.

http://www.atlantis.com/default.aspx

laurasdada

As the Fonz would say, correctomundo! Atlantis is a sprawling resort on Paradise Island, Bahamas. Several buildings sourrounding the water park with plenty of pools and ocean access. A great "(not so) lazy river," the best way to get around. Pricey. Only bargain was the free movies in the lovely Atlantis Theater and large popcorn was only $7! They're selling condos at up to a 40% discount, for a limited time only (originally ~$700k to $2.5m. If only I could have turned my $200 blackjack bankroll into a couple of mil). If anyone is interested, check out the Comfort Suites adjacent to (and, in fact, owned by) Atlantis. Lower price, includes breakfast every morning and free wifi. The taxes/fees added to the base rate are astronomical, however, upping the nightly base by about 60%! Of course, we were there during the school vacation week, so you're mileage may vary.

Alas, my brother pursued the writing profession and has made more than a handsome living, he lives in Tag's neck o' the woods and works in the same industry as his son. My writing has benefitted me not financially, c'est le vie y que lastima. These forums are as close to being published as I'm likely to be. Or not to be. What was the question?

Washed and waxed the XK this weekend, sure looks pretty. Spoke with the father of one of my son's teammates, he did an even better midlife crisis act: two Corvettes! A white 1970 and a red 2010. His "winter beater" is an '07 BMW 3xi. A Doctor, very nice...

laurasdada

I done killed this here forum... :surprise:

gagrice

No you just hit it in a slump. The AAPL fans are regrouping. I think I have my portfolios well balanced. When one stock goes down the other goes up. Of course I am still where I was in late 2007. Which was an all time high. So I am not greedy. My IRA is about 20% ahead of when I retired in 2006. That is good. Next year I have to take some out which I don't really need. Again that is good. I would say life is good for both of us. You just spent time in a great resort. I was real skeptical when our cruise ship landed in the Bahamas. I was with a bunch of good looking travel agents that got the royal tour of Atlantis. I got to go along and was very impressed. I would not give you a nickel for what I saw in the town.

laurasdada

We got a bit lucky on the ride from the airport to Atlantis. Signed up for van service, both their vans were full so they gave my family the stretch limo! Nice. As you note "downtown" and adjacent area of Nassau not so pretty. Cable beach looked nicer (from the road). Paradise island, purpose built for us touristas, so fantasy-land lovely. Want me one of them 40% off Atlantis condos. Unfortunately, I need more like 95% off...

I'm a few years away from retirement, but yes, life is good. Still trying to figure some things out, but for now, semi-content. My ira/401k are looking OK, as long as I keep working and no monster crashes. Again.

cyclone4

The AAPL fans are regrouping.

We are actually "reloading". To say the least, the way AAPL has been trading the past couple weeks has been very disappointing. There are obviously many out there that want to see this incredible company collapse. That is the ONLY reasoning I can come up with. In other words, it is manipulation.

I have not done a thing on trading lately. I am staying with Apple and that's it. I mentioned this a week or so ago, but APPLE will reach the $700 handle by the next earnings report.

houdini1

Yeah, I am still here and just biding my time with the market. The last 2 weeks have not been kind to my portfolio...but this too shall pass.

cyclone4

Yeah, I am still here and just biding my time with the market. The last 2 weeks have not been kind to my portfolio...but this too shall pass.

I have obviously taken a big hit (still way ahead though) on my AAPL shares the past couple weeks, but I totally agree with you: "This too shall pass".

carnaught

The AAPL fans are regrouping.

Yeah, what the heck is going on? Like others, I too am hanging in there and hoping for 700+ by the next quarter.

ljflx

Add up the operating cash flow for Apple for the last 4 quarters and you have $53 bln. The market cap as of Friday's close is down to $528 bln of which $110 bln is cash. So the real market cap is only $418 bln. That makes aapl an 8X earnings stock and it's a high growth company. One problem is that the company is lumped into an industry of box makers when in fact it's main product is a smart phone which also backs a tablet. Wall street has this company totally mixed up. It would be like a gold find if it weren't for the fact that the buyers you have to sell it to are the same Wall Street people who badly undervalue it. The street has dropped it back to a price that makes no sense and acts as if the last earnings report never existed. Meanwhile Apple is going to earn so much cash in the next 3 years that it's cash will start approaching the current market cap. I've never seen anything like ths. Can't explain it nor can I even begin to understand how the market thought that Amazon's last quarter was a good one. The revenue was driven by a loss leader and Bezos couldn't care about margins. Everything on Amazon is riding on the last quarter of this year and I seriously doubt that the company will deliver anything close to analysts estimates. The 4th quarter is then a driver for 2013 to knock the PE ratio down to 100X by the end of next year - at the current stock price. Again I doubt they get anywhere close to next years PE estimates. Meanwhile I expect Apple will easily exceed all earnings estimates, and continue to improve margins. But will the street value it? This is not about numbers. If it were Apple would be trading at $650 minimum. This is about market psychology and what is going on makes no sense to me at all. As well basing Apple on a Verizon report when its biggest and most important growth area is China is ludicrous but when you realize the market lumps Apple in with Dell and HP why is that not surprising?

http://finance.yahoo.com/q/cf?s=AAPL

Now here's Amazon's Balance Sheet. How wall street is enamored by an earnings report and doesn't pay attention to the balance sheet is beyond me. The cash dropped by nearly 3bln in the current quarter (adjusting for $1bln of share repurchase) vs Apple gaining $12bln of cash (which actually slightly exceeded its it's earnings so very high quality earnings). Amazon had built up a hoard of payables and barely has a positive current ratio (current assets over current liabilities). It can't afford the loss leader too much longer. Again financial numbers say the exact opposite of what market psychology is doing.

http://finance.yahoo.com/q/bs?s=AMZN

So do you buy on common sense financial numbers or market psychology?

cyclone4

Len,

I am SO happy to hear from you again. I was definitely concerned that you had become ill.

Your analysis for AAPL and AMZN is awesome and makes common sense. The problem, as you point out, is that the Wall Street boys have not been using common sense. Ultimately, we will be proven right.

ljflx

Interesting story here re Amazon.

http://pandodaily.com/2012/05/05/nobody-seems-to-understand-what-jeff-bezos-is-d- oing-does-he/

cyclone4

That is indeed an interesting article. I also read a lot of the comments below the article and most of them were critical of the author. The bottom line to me is that Amazon makes very little profit. So, since AMZN is trading at $225, AAPL should be trading at some astronomical value like greater than $2000. One is highly overvalued (AMZN) and one is very much undervalued (AAPL). It makes no sense as you stated above.

ljflx

Could pure fear be bringing Apple down. There's certainly no connection between the fundamentals of the company, it's growth prospects and its declining stock price. There's been nothing but negative news (everything from work conditions to how Apple smartly avoids taxes) in the media since Apple topped out in the $640's and the earnings announcement supported share prices that should be between $650 and $700. The company also does not have much exposure to Europe and should be looked at as a safety haven from Europe's woes. Plus the company has been practically immune to the US economic issues as it grew phenomenally right through one of the worst recessions we've ever seen. On top of that the quality of earnings in which cash growth actually exceeds earnings growth is mind boggling. It's a screaming buy right now based on valuation and growth prospects so one has to wonder what is driving the stock lower. Could it be pure fear of what other investors are going to do? Could it be pure profit taking from a large run-up? We tried to understand this once before when the stock was mired in the high 200's, low 300's range a year ago at this time. It does seem the stock goes through this swoon at this time of year. Whatever it is, it certainly has nothing to do with fundamentals. The company's earnings growth is badly outstripping its stock price and the strength of its Balance Sheet is nothing short of amazing so whatever is going on makes no sense whatsoever. You can't even get an accurate current ratio on this company as it almost immediately transfers its cash generated from current quarter earnings into a LT investment account. Transfer that asset back to cash and Apple has a current ratio the likes of which no company in history ever did and in the time I took to write this post the company probably added about another $2.5mln of cash profits to itself.

Decent story here covering some of this:

http://beta.fool.com/fjconstantino/2012/05/08/apple-if-only-it-were-cheaper/4290- - - /

cyclone4

I love that article Len! It makes total sense. I have a lot of confidence in Apple, but this article increases it even more. One of these days, the traders who are negative on Apple will wake up and they won't know what hit them.