Monday, February 11, 2013
Short trade in $AAPL
If $AAPL gets to 500 in the near term I'm looking to short the stock. Its definitely a value play for longs (cash + dividend), but being a consumer device company with major revenue generation from 1 product (iPhone) its not something I think can handle with a valuation over $400 Billion dollars. Margin compression, competition, limited product offerings, etc.
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I could see this working... A good idea would have been to "buy" at $450 with the earnings release disappointment and sell at $500. If you go short, you just have to hope there isn't a new announcement on Apple TV or something like that to get people back in again.
ReplyDeleteSometimes I'd buy for a quick bounce, but $AAPL wasn't one of them. I don't think a new product will push the needle. iPhone is over 60% of Apple's sales. iPad and Mac make up the rest with small amounts in itunes and ipods. New product would barely make a dent IMO. Think its a short no matter what. Supply/Demand not in its favor either. Many longs out of the money and are going to be sellers on bounces.
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