are you sure that a large percentage of people who are buying stock right now aren't shorting it? They may be seeing the current situation with no updates, dry supply lines, etc., and thinking that the stock is about to tank with the earnings report for this last quarter and the next.
Problem with this theory is that the short creates additional liquidity in the market - this liquidity has been taken up by buyers. Now, if there is genuine strength in the stock, the investors with short positions will need to cover at some point by buying and this will drive the price up further.
It seems to me that with previous 'big' announcements that we had a bit more in terms of solid rumours leading up to them. Now all we have are these little vapour trails. Is Apple getting better at hiding its plans, or is there nothing big on the immediate horizon?
U.S. public companies would be required to deduct stock option expenses from profits under a long-awaited rule proposed Wednesday by the Financial Accounting Standards Board, the private-sector body that sets U.S. accounting standards.
...
Tech companies contend options are the best way to compensate and recruit employees at startup firms and are vital to economic productivity. Opponents further argue there is no reliable model to calculate the value of options.
The rule proposal could have a big impact at dozens of companies.
According to CS First Boston research, earnings at 52 companies in the S&P 500 would have dropped by over 25 percent last year. Such companies include Apple Computer ..."
Plus the IBM news isn't exactly good news longterm (although it is somewhat).
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Originally posted by twinturbo
are you sure that a large percentage of people who are buying stock right now aren't shorting it? They may be seeing the current situation with no updates, dry supply lines, etc., and thinking that the stock is about to tank with the earnings report for this last quarter and the next.
Problem with this theory is that the short creates additional liquidity in the market - this liquidity has been taken up by buyers. Now, if there is genuine strength in the stock, the investors with short positions will need to cover at some point by buying and this will drive the price up further.
CNET ran some article about how Apple and Adobe are drifitng apart, could be part of the reason.
Originally posted by Messiahtosh
AAPL down 88¢ today.
CNET ran some article about how Apple and Adobe are drifitng apart, could be part of the reason.
Here's another (IMHO more) likely reason:
FASB unveils stock-option expensing proposal
U.S. public companies would be required to deduct stock option expenses from profits under a long-awaited rule proposed Wednesday by the Financial Accounting Standards Board, the private-sector body that sets U.S. accounting standards.
...
Tech companies contend options are the best way to compensate and recruit employees at startup firms and are vital to economic productivity. Opponents further argue there is no reliable model to calculate the value of options.
The rule proposal could have a big impact at dozens of companies.
According to CS First Boston research, earnings at 52 companies in the S&P 500 would have dropped by over 25 percent last year. Such companies include Apple Computer ..."
Plus the IBM news isn't exactly good news longterm (although it is somewhat).