I just don’t feel like blogging tonight, especially about Apple’s earnings and how there has been a sell-off in the stock, because of “expected” slowdown in sales in the first quarter of 2006. Still, wanted to share with you this historical pattern in Apple stock.
From third week of December, and ride it right to the eve of Macworld, there is a good chance there will be a 10% (or higher) appreciation in the stock. Call it the Macworld madness. Its traded down after that, typically, especially after the earnings get announced. Take 2005 as an example. Stock gained 10.41% right up to Macworld, when Steve Jobs introduced Mac Mini. Then, slip sliding away once the earnings were released. (2003-2004 performance was actually better!)
The sentiment for 2006 was actually better, even though the products announced at Macworld were kinda expected and lukewarm. The iPod powered Apple in 2005. The stock gained 12.13% in from the third-week-of-December to Macworld time frame. The earnings, today, resulted in a southward turn in the stock.
(PS: Don’t take this as stock investing advice. I am just pointing out historical data, and have no experience in stock investing. So please please, just take this with not a grain but a pitcher of salt.)
I friend and I noticed this pattern taking shape once Steve Jobs and his famous reality distortion field returned to Apple.
http://chrisyeh.blogspot.com/2006/01/good-taste-is-mightier-than-supply.html
Alas, we never acted on it.