AAPL update

aapl aug 16 2013

So we guessed incorrectly. Here is another guess.  The stock came from $688.66 and dropped to $380.06, so the distance travelled is $308.60. Multiplied by 0.382 gives $117.88. Add back the low of $380.06 and you arrive at $497.94. Given that other services have the high more like $702, the result is remarkable close to a minimum rebound level. Insider trading is defined as trading on info that is not readily available to the public. How that works when a hedge fund has a chat with the CEO and then tells the world is not entirely clear. In any event it may be time to step aside. Big buybacks are the equivalent of pulling yourself up by your bootstraps which, according to a lot of financial types, is the equivalent of a fat dividend and therefore good. The only minor fly in the ointment is that it can also be viewed as recognition of the fact that there is nothing left to invest in, not what you want to hear from a company that supposedly keeps creating it’s own future. The pot now sits at $146 bln. A sell nevertheless.