Apple and the Tragedy of Locking in Your Gains
by | Posted 7.30.2012 | Post Comment (No Comments)

Just before Apple (NASDAQ: AAPL) reported earnings last week, the Wall Street Journal gave play to an astounding bit of short term thinking on the wisdom of holding the company’s stock. It was based in part on an analysis, conducted by investment bank PiperJaffray, that keyed in to the daily movement in Apple’s share price over the past 25 quarters. The article pointed out that Apple’s stock has averaged a gain of about 3% on the day after posting earnings. But, the article warns, investors should be cautious about those gains because that 3% bump was usually “fleeting,” and often disappeared over the days and weeks that followed. The conclusion was this:

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