Facebook's IPO Debacle, Day 3: Un-Friended and Dis-Liked on Wall…
Former Olympic Rower Turned to Minimalism to Pay Down $82,000 in DebtA few months ago, it would have been unimaginable that the short interest in Apple (NASDAQ: AAPL) would be moving up sharply. The iPod, Mac and new iPhone were doing too well.
Shares short in Apple had the 10th largest increase of any stock traded on the NASDAQ for the period ending September 15. Shares sold short in the consumer electronics company moved up over 24% to 25.7 million. As it turns out, the move may be a good gamble. At under $129, Apple's shares are approaching their 52-week low of just over $115. The shares are down 25% in the last month compared to an 8% drop in the NASDAQ.
Concerns about sales over the holiday season may be one reason for the bets against Apple. Even its strong brands cannot weather a massive downturn in consumer spending. But Apple's problems may be more complex than that.
The market penetration of the iPod, which has sold nearly 170 million units since it was introduced, is likely to continue its slowing growth. The Mac has done extraordinarily well, but there are questions about whether it can make significant inroads into the corporate market where IT managers do not want to support it along with PCs.
Apple's biggest difficulty may be with its latest product, the iPhone. Buyers have been vexed by dropped calls and trouble getting access to 3G signals. This could put some pressure on demand for the handset.
That is a fairly full set of reasons to stay away from the stock.
Douglas A. McIntyre is an editor at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
9-25-2008 @ 11:40AM
Yev said...
Enough already with this rubbish, constant afterthoughts and unfounded opinion is really really tiring. I wish there was some prohibition, or accountability regarding what people write about public companies. Tired of you !!!!!!!!!!!!!!!!!!!!!!!!!
9-25-2008 @ 12:08PM
NEEL JOSHI said...
Douglas McIntyre, who died and made you an expert, you idiot. If you are so good at predicting than where were you before this financial meltdown?. Let me guess " that is not your area of expertise ". I hope WSJ is not paying you for this crap, for if they are I am canceling my subscription to the WSJ.
Go get your fact strait you MORON.
9-25-2008 @ 12:57PM
Jack said...
Douggie, ye of little brain,
It is clear that you write negative stuff about Apple just to generate page views. You are nothing but a page-view whore. Everything you write is pure nonsense. You should give it up.
By the way, will you be surprised if Apple announces that it has sold 10 million iPhones already in 2008?
Watch for a mega-announcement soon, when it introduces the new MacBooks and MacBook Pros. Pretty soon, Apple will be at more than 50% share of the notebook market in the U.S.
Yes, the shorts love to target Apple and then spread rumors. But, if you understand the fundamentals ($24 in cash per share, no debt, no slowdown in sales), then you buy when they knock it down and wait for the bounce which always comes. Last time they did that, bought at 119 and sold at 180. Just a few days ago, I bought again at 126. Will sell in the 150's.
You see, Douggie, the one thing you do not understand about Apple is that this company is a MASTER when it comes to execution. I have never seen a company that is so good at managing its operations. They never let inventories get out of hand. And, they are superb at managing their gross margin.
You should prostate yourself in front of Steve Jobs, and beg for his forgiveness for the crap you have written about Apple.
You are so pathetic.
LOL.
9-25-2008 @ 2:37PM
kevin said...
Jack- I like your style... good memo.. one thing though..maybe it was tongue and cheek... but it is "prostrate"....but actually I prefer prostate as to the general area of where doogie should put his opinion ..... otherwise great memo..!!!
9-25-2008 @ 5:43PM
George said...
Doug..
You did it again!!! LOL
All these comments people post on your articles.. do you read them at all?
I can't believe after all this (and many previous posts) you still venture and write about Apple... Let it go matey...
I have always agreed with Yev.. Apple should sue you, for negative publicity and defamation.. Where do you get your facts from?
I wish blogging stocks had a rating system of articles!!
9-26-2008 @ 9:05AM
Beltway Greg said...
Doug,
Why aren't there 150 ridiculous posts rehashing all of the negative stories on the RIMM board today from the Blogging Stocks intelligensia? What haven't any Blackberrys caught fire (surely in some small prefecture on some remote island in Japan a Blackberry has exploded) or hasn't the CEO stubbed his toe or isn't someone out there contemplating some type of legal action against RIMM? What about options? Does RIMM use options to compensate any of its employees. What about their supply chains? Didn't someone have a mole out there that could've told them that this was coming?
Or maybe you can focus on the fact that it's down almost 50% from its all time high and its missed earnings for 2 consecutive quarters? Probably too banal though.
Beltway Greg