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

To: rhet0ric who wrote (10794)	4/3/1998 9:42:00 AM
From: Phillip C. Lee	Read Replies (2) \| Respond to of 213177

My take on AAPL is that analysts are very inefficient in their knowledge of the company and the stock. Whether it's because Apple doesn't give them good information, or they don't follow it closely enough, I'm not sure, but it's true. My observation is that Analysts are not that slow to realize the turning-around situation, but they have put too much in shorts. If they said Apple's in good shape, then they would lose the opportunity to cover back with lower prices. You could see from last month's increase in shorts volume by 3m shares. Actually, the real situation is very funny. I think they tried to pull down the price almost everyday last month, but it continued to run up from $20's to $27's, which ends up piling up their shorts volume. There are going to have battle between shorts and the market trend. You could see almost every morning, shorts place $27 1/8 at ask and the bidding was $27 1/4. This is obvious that shorts are eager to pull down the price as possible as they could. Usually, it lasts about 30 minutes every morning and then the price stabilizes. The only way to kill the shorts is the excellent Q2 reports due within 2 weeks. By that time, most of them will give up by covering back with the prices they wouldn't want to pay. Phil