Short interest in Apple soars
posted by Alan F. / May 28, 2013, 6:23 PM
He who sells what isn't his'n, must buy it back or go to prison." Hey, we only report these things, we don't make them up! Short interest in Apple rose from 8 million shares in April 2012 to 20 million by April 2013. During the last two weeks of April, when the shares fell sharply to $385, the short interest doubled to 41.6 million shares. Now, with the stock back up to the $445 area, the short interest has declined to 26 million shares. This means that the recent bounce off the low has been due to shorts covering their position which is not considered having the stock in the hands of strong buyers.
It might be counter-intuitive but a large short interest often is the sign of a major bottom in a stock. It means that everyone pessimistic about the stock has already sold Apple shares short. Also, since the majority of people do the wrong thing in the market, short interest is often a contrary indicator. And finally, all of those shares sold short will have to be bought back eventually. The reason why a short seller might be forced to "cover" his position has to do with margin calls. If you short a stock and it starts rising, you might have to put up more money or be forced to close out the trade.
The bottom line here is that with all of the recent bearishness over Apple, the short interest is saying that this pessimism might have gone a bit overboard. Is the Apple iWatch getting ready to turn around the company's fortunes, and those of its investors?
source: NASDAQ via Fortune, TUAW
Posts: 10457; Member since: May 14, 2012
Wow. I would be a little scared. Sure they're still taking home the most profits, but the decline of sales on their products and lower stock value is something that shouldn't be overlooked at in Cupertino.
posted on May 28, 2013, 6:27 PM 7
Well their sales haven't really declined, sales GROWTH has declined, but they've still continued to show year over year growth with each new iPhone. It's true though, they can't ride their wave of success forever.
posted on May 28, 2013, 7:06 PM 6
Posts: 30830; Member since: Feb 05, 2011
I think apples paying attention Smurf. Maybe they needed a shock to get them up and running. BTW have you noticed how secretive apples been this year. 2010 iPhone 4 left in a bar, announced by gizmodo's Jason Chen before Jobs can announce it. 2011 4S left in a bar, and tracked to a guys home, apple has place searched only to come up empty handed. 2012 iPhone 5 leaks months before official announcement, when its announced it looks just like the leaks. 2013 absolutely nothing. That makes me think they got something big. Guess Cook was rite, when he said we're doubling down on security.
posted on May 28, 2013, 7:27 PM 4
Posts: 1021; Member since: Jan 17, 2013
So whens their next event so their stock falls another 100 points.
posted on May 28, 2013, 6:27 PM 3
Posts: 4851; Member since: Apr 13, 2012
Hoping wishing in couple of months! ®
posted on May 28, 2013, 8:31 PM 0
Posts: 2155; Member since: Oct 29, 2012
Apple's low stock was an excellent opportunity for he company to buy own shares cheap and gain influence at the stockholders board. While $700 wasn't realistic, so wasn't $385 cause Apple still sells more products every quarter than in the previous, just market share and profit margins stopped rising. Realistic is around $550, and APPL is heading there.
posted on May 28, 2013, 6:57 PM 4
Can we please stop talking bout STOCKS and get back too mobile news? and especially stop talkin bout Apple stocks
posted on May 28, 2013, 7:20 PM 0
They gauge how valuable these stories are by how many people visit it. You didn't just click on it, you commented, that counts for at least 2 visits. If you really don't like these articles and want them to go away, ignoring them is the best solution.
posted on May 28, 2013, 9:04 PM 0
Posts: 30830; Member since: Feb 05, 2011
You could always deactivate your acct and visit another site...please
posted on May 28, 2013, 10:09 PM 1
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