Ted,
what you observed is a peculiar reaction, which can be seen sometimes in very depressed stocks. Everyone expected bad earning figures from Apple but not such bad, so one would expect a big drop in stock price. This indeed did not happen. The reason is, that the 'weak'investors have already sold out before, and the stock has been accumulated by 'strong and though' hands. They got in because they want to invest in a weak company at a low price. They don't bother about a bad quarter, they are betting that the company will recover. If this is a smart move, remains to be seen. If Apple goes nowwhere, then these smart guys will lose their money. But one thing, you can keep in mind. With all weak investors gone, the stock will not drop so easily on bad news. So if you want to bet on the companies future, you have to buy Apple shares right now.
Some time ago, I made some money in a similar situation by investing in FIAT shares (the Italian car companies). They just released horrible earning figures (a 1B$ loss I think) and the stock moved up just 2% the same day. Soon the stock began to skyrocket more than 100%! So, I am not shure about Apples future, but If you want to invest in Apple, do it now!
Hope this helps you
Ralf |
