As a former growth manager I can tell you that most growth guys blew out of AAPL last year to chase the juice. Then juice rolled in March and AAPL started to work so they chased APPL right into the New Product launch. The constant institutional bid is now gone and they will become net sellers as the stock starts to underperform. AAPL is no longer a secular growth stock and has transitioned into a trading stock. It is still big in the growth benchmark so that means momentum chasing growth stock managers will cover their underweight near the top and go underweight near the bottom.
Longer term smart phones will be commoditized and margins will collapse for the industry. This looks like a classic double top. Comps will be tough next year and margins will be getting squeezed. In tech stock investing you always want to sell the launch of a new product. So you have numbers that are too high and growth stock managers just got done Buying to cover their underweight. This looks like a lay up long term short to me.
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Great tips
merci
How far before the launch do you sell? Is it too late now to open a new short position into AAPL’s product launch?
I agree. Fly didn’t though when we played that Pick Five Game. BTW, strange move yesterday, BoJ did nothing, but EU acted which IMHO I didn’t think they had the guts to do. But Market didn’t do that normal QE rally move? Why?
Agree with the Short on AAPL that is. BTW, how long were you a growth manager?
Catm,
That is very granular. My call is that this will be lower over the next six months.
Trading nymph,
10 years
How does one start in the Portfolio management gig?
Helicopter Ben,
It’s not easy. Getting that first job on Wall Street is the hardest. After that is what youakenof it.
You’re the most underrated poster on this site by far
conferenceattendee,
Thanks