There is no apparent news that anyone appears to be attributing to the decline in AAPL's shares. The best guesses are highlighted in this Investors' Business Daily article.....
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In midday trading Wednesday, Apple shares were down more than 4%, nearly to 551.25.
No apparent news had surfaced, but Street Insider reported that some clearing firms are raising margin requirements for clients that trade in Apple. It said COR Clearing, based in Omaha, Neb., has raised its margin requirement on Apple to 60% from 30%, "citing a 'high concentration'" of ownership. A higher margin requirement means that investors either must put up more of their own money to buy Apple stock or sell shares so they don't have to put in more cash.
Apple has been a volatile stock of late. Shares tumbled 28% from Sept. 21 to Nov. 16, after hitting an all-time high of 705.07. Apple then climbed 18% as of Monday, but has since fallen hard for two straight days. Apple's slide was precipitated by a host of concerns, including an expected drop in profit margins, a management shakeup and production constraints on the iPhone 5 and iPad Mini.
Jason Schwarz of EconomicTiming.com said the recent stock move could be the result of Apple not issuing a special cash dividend to shareholders like other large companies have done in recent weeks in a bid to shield investors from possible ramifications of the "fiscal cliff." Here is an IBD report. "Apple's refusal to issue a special dividend is causing a third wave of its sell-off that began on September 21st," Schwarz wrote on Seeking Alpha. The first sell-off wave was caused by institutional investors re-balancing portfolios and locking in gains. The second wave was the hangover from President Obama's re-election, he says.
"As soon as funds became convinced that (Apple CEO) Tim Cook wasn't going to participate (in the special dividend rush), they began transitioning out of Apple for the short run," Schwarz wrote.
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To me, this sounds like the investing press is grasping at straws and are trying to attribute the slide to some sort of news. My guess, the high volume is indicative to selling pressure from institutional investors and that someone knows something. Whatever that something is antibody's guess.
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In midday trading Wednesday, Apple shares were down more than 4%, nearly to 551.25.
No apparent news had surfaced, but Street Insider reported that some clearing firms are raising margin requirements for clients that trade in Apple. It said COR Clearing, based in Omaha, Neb., has raised its margin requirement on Apple to 60% from 30%, "citing a 'high concentration'" of ownership. A higher margin requirement means that investors either must put up more of their own money to buy Apple stock or sell shares so they don't have to put in more cash.
Apple has been a volatile stock of late. Shares tumbled 28% from Sept. 21 to Nov. 16, after hitting an all-time high of 705.07. Apple then climbed 18% as of Monday, but has since fallen hard for two straight days. Apple's slide was precipitated by a host of concerns, including an expected drop in profit margins, a management shakeup and production constraints on the iPhone 5 and iPad Mini.
Jason Schwarz of EconomicTiming.com said the recent stock move could be the result of Apple not issuing a special cash dividend to shareholders like other large companies have done in recent weeks in a bid to shield investors from possible ramifications of the "fiscal cliff." Here is an IBD report. "Apple's refusal to issue a special dividend is causing a third wave of its sell-off that began on September 21st," Schwarz wrote on Seeking Alpha. The first sell-off wave was caused by institutional investors re-balancing portfolios and locking in gains. The second wave was the hangover from President Obama's re-election, he says.
"As soon as funds became convinced that (Apple CEO) Tim Cook wasn't going to participate (in the special dividend rush), they began transitioning out of Apple for the short run," Schwarz wrote.
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To me, this sounds like the investing press is grasping at straws and are trying to attribute the slide to some sort of news. My guess, the high volume is indicative to selling pressure from institutional investors and that someone knows something. Whatever that something is antibody's guess.
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