Tuesday, October 21, 2008

Possible FAKEOUT... Follow Through will confirm this tomorrow

Well, AAPL sold into earnings. Usually it stays flat day of earnings... Today was a little different. The suspicious buying right after the closing bell added to evidence of a 'fake-out'. The big boys scared the Long buyers into selling... I am not the least bit surprised. I also will not be surprised if AAPL went lower in a few days, even if the general market went up on the possible upcoming added bail out plan.

I have no time to mess with this nonsense. Thus, my meager $$$ went elsewhere... MSFT put (hold), SNE put (bought), HOT (attempted buy). I have moved on to the next opportunity. No regrets... just more experience.

Dissecting the numbers for AAPL has been confusing for some. Especially with the way iPhone is being accounted for. But Steve Jobs special visit on their earnings conference said one thing... iPhone (which is Mac OS X) has gone beyond its sibling products. It accounts for nearly 40% of their revenue or $4.6 Billion. They sold 6.9 M 3G iPhones this Q. Can you imagine if they pull of their goal of 40 M iPhones sold next year. Apple is a monster... They would be even bigger if it had not been for exclusive contracts with AT&T and Orange. Competition from Android & Blackberry Storm will keep Apple from getting lax. But the iPhone is way ahead at this point. And just think, the desktop/laptop portion of their biz keeps going at 30% growth YOY. It is no wonder that AAPL gapped up afterhours.

Know this tho, i will eventually buy puts in anticipation of the Longs selling the stock on a spike.

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