Appl is tanking due to this stupid article
Apple lower as growth is questioned
By Rex Crum, MarketWatch
Last Update: 2:34 PM ET Feb. 6, 2006
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SAN FRANCISCO (MarketWatch) -- Shares of Apple Computer Inc. fell to their lowest levels Monday in more than two months, on concern that there is not likely to be much good news surrounding the stock for some time.
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AAPL67.31, -4.54, -6.3%) fell $4.15, or almost 6%, to $67.80, and the stock is down 22% since reaching a year-to-date high of $86.40 on Jan. 12. It's the first time that the company's shares have been below $70 since trading at $68.81 on Dec. 1.
For more than a year, Apple has put on one of the most-dominant market performances in the technology sector. The Mac and iPod maker even had a 2-for-1 stock split on Feb. 28, 2005 after its shares reached almost $90 -- and then saw the stock nearly reach that all-time again in January.
But sales of more than 14 million iPods in Apple's last quarter, along with $565 million in profit and $5.75 billion in revenue, has added fuel to beliefs about just how long Apple can sustain such growth on a year-over-year basis, according to Robert Bacarella, manager of the Monetta Select Technology Fund (MSCEX:
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Bacarella said that Apple makes up about 0.5% of his almost $2 million fund, but he has pared down his holdings in recent weeks from 1.5%. He added that there is a sense in the market that "all the good news is out. The easy money has been made."
Apple's overall business remains solid, but that there are genuine concerns about the company's abilities to match is year-over-year profit and revenue figures, according to the fund manager.
Bacarella also said that there is little to suggest it is necessary to sell Apple shares, but that the stock needs to show some strength at the $67 mark to maintain broad confidence.
"My gut feeling is that people are taking some [profits] off the books," he continued. "They feel the stock looks tired and want to get some payoff from it. If there was any real bad news, [the stock] would have broken down before now."
Analysts surveyed by Thomson First Call estimate that Apple will earn 44 cents a share on $4.58 billion in revenue for its current, second fiscal quarter. Such figures would result in a 29% rise in earnings per share and a 41% increase in revenue.
The huge success of the iPod, along with increased sales of Apple's flagship Macintosh computer line have created a situation that, while enviable, is also hard to match with every subsequent business period, Bacarella said