Apple stock is one of the craziest stocks I have ever seen. First of all, no other stock gets near as much daily coverage as Apple does: you can read dozens of opinions each and every day about almost any aspect of the company and their business. The amount of news that is pumped out daily about this company is astounding and unmatched. (So, I might as well add to it.)

Because of this wide coverage from every conceivable news source, there is never a shortage of opinions about Apple's products or the stock. It seems you can often find a generous supply of recommendations on both sides fervently detailing why investors should buy or sell the stock. Because of the high quantity of articles published, it is sometimes hard to tell the qualified professional opinions from those that come from less qualified sources.

For much of 2012, Apple stock went up and up fast. Probable too fast. But once the stock hit it's high of $700 a share in late 2012, something happened. It was like a dam that suddenly spouted a small hole where water could come through. Over the following weeks and months, that hole became bigger and bigger as the stock continued to sell off. Finally, the hole broke open and water gushed out. Apple stock plummeted to under $400 a share which was really quite a shocking pullback from the $700 level.

Most of this year while Apple was selling off, the negativity from analysts, pundits, writers, and who ever else wanted to throw their hat into the ring was relentless. Relentless in their bashing, the media ran over the stock and pushed it down. It really was a group effort and quite like that of a herd of wild buffalo running over the stock.

Any investor who wanted to find a reason to buy Apple stock during those months had to look far and wide to find anyone who was saying positive things about Apple. The collective mindset was that Apple had no more tricks up their sleeve and they would die a slow death - stay away from the stock. Everyone was saying the same thing. I really mean almost everyone because I own Apple stock and it was hard to take all the negativity and hold on.

In July 2013 something changed again. A positive write up here, an encouraging news story over there, and a another upgrade or recommendation from someone else. Little by little, the herd began changing direction. Where it once was hard to find something positive to read about Apple, your chance of finding optimism was getting better every day. Oh, there were still the bashers but slowly they were (and still are) being overwhelmed.

Apple stock now is going back up and it is doing this with a steady influx of buyers. Even on days you think the stock might go down big (like the October event were no new product was introduced), the stock only shows smallish losses. The herd has turned, there is no doubt about it.

No comments: