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What you have to understand is that most of these artificially high estimates were created by hedge funds with short positions in AAPL. 1) release an artificia
by chugger 15y ago
What you have to understand is that most of these artificially high estimates were created by hedge funds with short positions in AAPL.
1) release an artificially high revenue estimate
2) wait for actual results
3) wait for stock to dip when estimate > actual results
4) sell short positions
5) profit
These analysts are not actually idiots, they're evil.
- jpadvo 15y agoThat is a fascinating claim, and it certainly sounds possible. Do you have any evidence or sources to back it up?
- chugger 15y agoI posted this on another thread. "Seven Reasons the Shorts Love Apple" is an investor's must-read. Hedge funds: Riding the AAPL slingshot http://tech.fortune.cnn.com/2009/12/20/hedge-funds-riding-the-aapl-slingshot/ http://tech.fortune.cnn.com/2009/12/20/hedge-funds-riding-th... Long nicknamed the “favorite yo-yo” of daytraders and hedge fund managers – Apple’s high beta of 1.43, its prominent position in finance media and its vulnerability to rumors has made it a choice stock in short term profits, both through long and short positions http://www.investorguide.com/article/6809/apples-aapl-mini-crash-reveals-the-stocks-delicate-balancing-act/ http://www.investorguide.com/article/6809/apples-aapl-mini-c... Hedge Funds, Bloggers and the Origin of Apple Rumors http://tech.fortune.cnn.com/2011/03/30/about-that-iphone-5-delay/ http://tech.fortune.cnn.com/2011/03/30/about-that-iphone-5-d... Samsung employee caught leaking information to hedge fund manager before iPad launch http://www.bloomberg.com/news/2011-09-14/ex-samsung-worker-says-he-gave-apple-ipad-data-to-fleishman.html http://www.bloomberg.com/news/2011-09-14/ex-samsung-worker-s...