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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Li Cai who wrote (6040)	11/9/1997 8:36:00 AM
From: Eric Yang	Read Replies (1) \| Respond to of 213176

>>If the AAPL definitely move up after Monday's new, everyone will buy AAPl and make money out of it. How can that possible? I simply feel that AAPL will drop a few days after the news and then move up in long run.<< There are plenty of people who think or hope that Apple will fail. Buying into Apple right now definitely has its risks. It's for taking those risks that we may be rewarded. Sure the stock usually shoots up after positive news and then settle back a bit. That's just how the market works. Nonetheless, if the outlook of the company improves significantly the stock price will remain much higher than before the news was announced. Why? Too good to be true? Of course not. When there are good news about a company, it brings in new investor interests. The increase demand for shares and the money supply it brings in is what drives the stock up. This is the stock market. And yes, people do make money here. Eric

To: Li Cai who wrote (6040)	11/9/1997 8:41:00 AM
From: James L. Fleckenstein	Read Replies (1) \| Respond to of 213176

Li Cai, I have the same concern as you do, even though I am long on Apple calls. Let's face it, this is a speculator's play. Whatever happens monday is a promise of things to come not proof of good things recently accomplished (such as earnings). Spculators moves have been enough to buoy a stock price up in the past few years but as the mania bubble has substantially burst, all speculative moves deserve more rigorous scrutiny. I expect I will sell my November calls on the News and may well buy in the money puts on the first day peak, particularly if the overall market continues its downward bias. I am not an investor, if I was I might view Monday as nothing but great. As a trader, though, I suspect we are going to see some up and down action.