From “Stocks Tumble in Wake of Turbulence on Wall Street” posted Tuesday morning by the Wall Street Journal:
U.S. stocks fell, putting markets on course for another day of bumpy trading, as investors awaited the Federal Reserve’s policy meeting and parsed a docket of earnings…
The moves follow a jarring intraday reversal Monday, when major indexes clawed back losses to post a big comeback. The Dow reversed losses of more than 1000 points for the first time in history. After falling more than 4% in intraday trading, the Nasdaq recorded its biggest reversal since 2008…
This week, investors will be parsing results from tech heavyweights like Microsoft, Apple and Tesla. These been among the companies weighing on the S&P 500 the most this year, according to Goldman Sachs.
Individual investors appeared to be buying the dip in stocks like Tesla, Apple, Nvidia and Microsoft on Monday, according to Nicholas Colas, co-founder of DataTrek Research. That potentially helped the market record its historic comeback. (emphasis mine)
My take: “Helped” is a pretty weak. “Potentially helped” is weaker still.
I read this on the Bloomberg crawl last night after the European Open and it basically says it all:
“In a spasm of panicked selling early Monday, retail investors offloaded a net $1.36 Billion worth of stock by noon. Most of it in the first hour according to data from JP Morgan’s strategist; Peng Chang.”
Savvy investors can really benefit from the knowledge and experience by becoming an Apple 3.0 subscriber and taking advantage of the “pools of knowledge” who post on the platform, post on Slack, and ask insightful questions on zoom calls. (Members only for the later two)
Apple’s share price tends to move higher more days than it moves lower. Almost always Apple’s annual revenue and earnings are higher. Over the past ten years the split-adjusted share count has moved significantly lower. This means almost always earnings per share will trend higher. Because the share price is currently lower and over time it tends to move much higher, it appears to be a time to buy the shares. Call it a dip if you’d like.
I was curious about this statement, not sure if it was correct. Does AAPL actually have more green days than red days? I found a database of share price data and analyzed the last 10 years, and it turns out…
You’re correct! But just by a little more than a coin flip. In the last 10 years, AAPL was up 51.9% of its trading days and down on 48.1% of them.
Thought you might like to know. Obviously the magnitude of the up vs the down is what matters.
Bull Durham
I wouldn’t count on it, but go ahead if it makes you feel better. ASR’s, yes. But direct market purchases, not a chance. Too much opportunity for them to be accused of insider trading until the cat is well and truly out of the bag.
Apple’s come way too far to play this anything but cautiously, especially just to gain a few bucks.
Senior managers will not buy or sell shares during certain “blackout periods; and
To avoid trading on inside information or appearing to do so, senior managers will not buy or sell shares in the issuer in the weeks before the issuer announces quarterly earnings or other material corporate events.
SEC Rule 10b-18 creates legal certainty that permits issuers to repurchase their shares without fear of an SEC investigation or private lawsuit. That’s why unless Apple has some internal company related policy that I’ve been unable to locate anywhere in their 10K, it appears they constantly stay in the market gobbling up shares as permitted under the SEC well tailored guidelines for a defined repurchase of shares authorization.
I’m not disagreeing with you. I’m just saying it’s very likely Apple doesn’t consider the (relatively) tiny gain worth the potential hassle. Lately, we literally have seen folks make mountains out of the tiniest of Apple molehills….
Pretty certain Epic and Tim Sweeney found that out for real in their misguided lawsuit. They should have stayed in the App Store. But life is full of choices.
I would anticipate Apple’s Board authorizing a new share repurchase program before or near the shareholders meeting to the tune of $300-350B to cover the next 3-4 years duration.