IPO Market Sags In Q2; Total Look Even Worse Ex-FacebookForbesEven with Facebook's monster offering, the global IPO market had a rotten second quarter. … Excluding Facebook, IPO proceeds raised in the quarter were down [.and more »
Once again the mainstream media boohooed over a false and misleading seasonally falsified industrial production number, bemoaning that the SA number was down 0.4% month to month in May. They are playing into the Wall Street mob’s desire for manna from Ben next week. It’s totally bogus, supported only by false and misleading SA data, not the real activity.
It is small wonder mom-and-pop investors are showing no love for U.S. stocks for a fourth consecutive year. Not only has the U.S. economic recovery remained fragile, but the so-called “headline risk” is dominating investor psyche again… But it has been clear—to some of us, at least–that mom-and-pop investors threw in the towel a while…
Apple Inc. (Nasdaq: AAPL) investors have cringed as the stock slipped about 16% from its peak over the last two months.
But given the absence of any catastrophic bad news, why is AAPL stock tumbling? And where will it stop?
It’s important to note off the bat that Apple’s fundamentals are just as strong as they were last fall when the stock began its huge run-up from just under $400 to $636.23 on April 9 (it hit an intraday high of $644 on April 10).
In short: Apple still expects to make a mountain of profit this year. Apple still has over $100 billion in cash with no debt. The company’s price/earnings ratio is about 13.50 for the trailing 12 months and its forward P/E just 10.
So something else must be driving down Apple stock. Some of it is logical, some of it emotional – but none of it permanent.
Let’s take a closer look:
- A Parabolic Rise: First and foremost, AAPL simply rose too far too quickly. Rapid gains beg profit-taking.
“It was clear to me that this kind of reversal was coming – and sooner rather than later,” said Money Morning Chief Investment Strategist Keith Fitz-Gerald when the selloff started in April. “The shares had soared 75% in just five months – one analyst actually described the performance as “euphoric.'”
CBC.caMonster shares soar on rumors of Coke dealBusinessWeekAP Monster Beverage Corp.'s shares are gaining on a report that Coca-Cola Co. is considering buying the energy drink maker. The Wall Street Journal is reporting on its website Monday that …
For several weeks, I’ve been talking about the Fib zone at 1376-1378 and how I felt that could act as a magnet for the rally. Yesterday, the SPX hit 1378.04 and reversed. Could it really have been that simple all along? …
Yesterday the market traded up a little farther into the target zone, and has now satisfied the minimum requirements for the fifth wave up we’ve been looking for since February 8. I literally spent six straight hours charting…
The Fed can only choose the least-worst option now: either destroy the real economy by sinking the dollar below support and unleashing the Inflation Monster, or abandon the “risk trade” stock market rally.
The Fed’s game plan–sink the U.S. doll…
Why is no-one concerned about this fiasco which is the Federal government’s budget? Why is everyone buying the patently ridiculous notion that the American economy will “grow its way to prosperity, and out of debt”? Why is no one freaking out …
a real stoolie, worth readin
What Matters More: Debt-to-GDP, Or Supply?
There may be a flaw in the thinking our economists, financial leaders, the MSM and (even) the bloggers. Everyone is looking at the debt issue based on some ratio of total debt to GDP or debt service to GDP. This is the way it has always been done and is both right and appropriate. How much debt can be afforded is a ratio of the borrower’s income, whether it is an individual, a company, a State or a Sovereign. But there is (to me) evidence of a new metric developing. Supply is quickly becoming the determinant for the cost of borrowing, not debt to GDP levels.
Consider California. They have a monster GDP. Their debt to GDP is one of the best in the country. They have debt equal to only 6% of GDP. Massachusetts and Rhode Island are north of 20%.
But California is the official junk borrower. They just paid 5.8% for ten-year money. On a taxable equivalent yield that comes to 9%. Cali’s CDS spreads are also in the tank. Their spreads are trading even up to Bulgaria. It is not their GDP that is the problem it is their visible supply of paper.