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

To: rhet0ric who wrote (8734)	2/24/1998 10:17:00 AM
From: Eric Yang	Respond to of 213176

Matt, this is my interpretation... AAPL hit high 19s right after Jobs' earnings preannouncement. Since the stock was trading at 13s just before the new year, the stock has over extended itself and didn't have enough momentum to break 20. Not that AAPL wasn't worth $20+ but there were simply too many weak holders who got in at low teens and looking to take their profit near $20. Over the weeks that followed, the trading range went from a wide swing of $17-19s towards a more stable movement in the 19s. Then the Power shares and a couple of other factors entered the picture..and it took the stock back down to low 17s in a couple short days. This helped us shake off a lot of weak holders and some of us an opportunity to pick up more shares at this level. I added some shares at 17 1/2 ;-). The effect of Power's shares and other fears quickly faded. As AAPL heads higher the "snail ad" and other good news kicked in over the course of the next two weeks. The stock then steadily climbed towards high 19s. Now with fewer weak shareholders there was much better momentum this time around. It was just a matter of time before either good news about AAPL or general movement of the tech sector pushes us over the $20 psychological barrier. And it happened last Wed. After being held under $20 for so many weeks the momentum was quite strong. But the weak Fri opening and options expiration pegged us at $20. With options expiration out of the picture, I think a lot of people were looking for a strong opening yesterday..with a few good news about earnings and perhaps a little short covering we're now in the $21 territory and $22.5 seems like a very reasonable target for this coming week. Eric