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Old 03-01-2013, 04:52 PM
 
Location: Metro Detroit, Michigan
11,920 posts, read 13,321,006 times
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Quote:
Originally Posted by Ted Bear View Post
AAPL has yet to report sequentially lower earnings...yet the stock is down nearly $300 from its peak. How do you think those employees feel?

Not to mention that bagholders.
Apple has had an unprecedented winning streak. A correction was overdue. When The team captain died, shareholders began to watch closely for turbulence. Once a downward decent began to take hold, shareholders got spooked.
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Old 03-01-2013, 07:31 PM
 
Location: USA
16,675 posts, read 16,370,190 times
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Quote:
Originally Posted by Ted Bear View Post
AAPL has yet to report sequentially lower earnings...yet the stock is down nearly $300 from its peak. How do you think those employees feel?

Not to mention that bagholders.
AAPL reported great earnings, however it no longer impressed the street. Just look at the past earning reports and you'll see why the street is no longer impressed. A company can't show 100% increases in profit forever.
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Old 03-02-2013, 04:02 PM
 
Location: Ohio
18,173 posts, read 13,345,222 times
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Quote:
Originally Posted by andywire View Post
Expected earnings are priced into the value of shares. If a company fails to achieve those expected earnings, the price of shares take a hit. It's always been this way. Nothing unusual or new.
Indeed.

Quote:
Originally Posted by mathjak107 View Post
there is not alot of correlation between stocks and profits.

if you read a random walk down wall street the times when corporate profits are highest is when market gains are smallest.

that work was later confirmed by ned davis research. very interesting results.

profits up 20% the s&p returned a mere 1.3% in gains

10 to 20% saw 5.8% in gains

(-10% to + 10% in profits saw a 9.3% jump in gains

(-10%) to (-25%) drop in profits saw 28.6% gains

(-25%) and lower saw a -28% drop in share price.
I agree to the largest extent.

Probably the only real correlation that you might actually see, is a rise in stocks when there is high potential for future profits, and even that's stretching it a bit.

The players in the stock market game have changed a lot over the years, especially since the rise of 401(k) plans.

Unexpectedly...

Mircea
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Old 03-03-2013, 03:53 PM
 
Location: Sunnyvale, CA
4,914 posts, read 8,946,118 times
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Quote:
Originally Posted by Mircea View Post
The players in the stock market game have changed a lot over the years, especially since the rise of 401(k) plans.
The players might have changed, but the reason stock prices move the way they do has stayed pretty much the same. If you read a book like Reminiscences of a Stock Operator (a great book, by the way), which was written 80 years ago, you realize nothing's changed. It's the same game.
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Old 03-03-2013, 08:07 PM
 
Location: 3rd Rock fts
745 posts, read 943,687 times
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^^
Quote:
Originally Posted by 80skeys
The players might have changed, but the reason stock prices move the way they do has stayed pretty much the same. If you read a book like Reminiscences of a Stock Operator (a great book, by the way), which was written 80 years ago, you realize nothing's changed. It's the same game.
The weak, marginal TBTF investor is a major change/cause of our financial problems today IMO! They participated in debt/credit-induced exuberance via the so-called wealth effect. Now the FED/USGov’t/Taxpayer has to bail out stocks/housing (solvency). The USGov’t can’t even begin to cut spending—the TBTF citizenry has no money to pay bills, because their money is tied up in INFLATION-causing investments.


The last 10~ 15 years of economic profits is based on USGovt/Taxpayer standardized subsidies to the masses, & outrageous credit expansion. How is the Economy going to recover, when the masses' need stock market prosperity to continue? http://www.city-data.com/forum/27591227-post32.html

Last edited by DSOs; 03-03-2013 at 08:20 PM..
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Old 03-03-2013, 08:45 PM
 
48,519 posts, read 81,350,619 times
Reputation: 17985
Not strange at all /If you rememebr that sotvks have to types who buythem traders and investor( long term). Lookig at the volumes alone shows that its most traders buying not investors. that means sahresw are bought then profit taken and volitity is high. Basically if you look evryoen from wall street to main street is holding more cash ebcause of this. les volume less people actaully buying into stocks. traders buy low and sell high at a much more rapid pace. A stock not seen has low but near high is not bought ;of course.
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