Apple Schizophrenia Distorts Long Term Value $AAPL

Apple (Nasdaq:AAPL) is expected to show some short-term weakness. You know this because all of a sudden the PR machine is talking about new and exciting future product launches.

Stock prices are the present value of future earnings.

Everything cannot come out good every quarter. Business is too complicated. If a company can manufacture good every quarter something smells bad.

The market discussion on Apple is very schizophrenic. Investor behavioural behaviour case study at its best.

Buy on rumor sell on news is have a train wreck. News will be out shortly and rumour is out like right now.

Do not trade on todays rumour or todays news. Buy Apple if you believe in the story which has made billions despite the latest suggestions from Carl what’s his name.

George Gutowski writes from a caveat emptor perspective

Alcoa walks point. Does Alcoa attract volatility and hurt shareholders? $AA $VIX

Alcoa

Image via Wikipedia

Alcoa (NYSE:AA) is about to announce quarterlies. It has become the traditional kick off for earnings season. Alcoa is the first major to announce and market pundits start to blog, twitter and spew. They attract a lot more attention than other majors.

In effect they walk point on the jungle trail. The enemy sniper sees them first. The enemy the booby trap gets them first. Alcoa comes into hot contact with the marketplace first. Inadvertently they attract a lot of attention which creates volatility because of their self selected earnings announcement timing.

Are the shareholders well served by this. Probably not. This volatility has nothing to do with the business risk of Alcoa. Why would an investor want to accept the risk?

Note to management. Stop going first. You have no obligation to feed the news cycle and you are probably hurting your investors. So stop it already!

Disclosure: George Gutowski writes from a caveat emptor perspective. I hold not positions in any stocks mentioned in this post. I hath no plans to initiate new positions within the next 72 hours.