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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Jonathan Bird who wrote (2729)	3/8/1998 1:01:00 AM
From: Frodo Baxter	Respond to of 9256

Okay, the holders of convertibles get itchy fingers once it breaks through the strike. So they start boxing their profits, until eventually all the convertibles are fully hedged. This is what happened with APM, and I figure this would happen with AAPL as well. APM kept going up because the fundamentals were (supposedly) fine. I don't believe this is the case with AAPL, as the fundamentals are clearly horrendous and deteriorating and everybody knows it. With APM, the marginal selling pressure was negligible. With AAPL, it should be more than enough to prevent it from overshooting significantly beyond 29. That's the theory anyway. I don't believe AAPL will ever reach that high to test my theory. Ever.