Andy is starting to get some attention from other people.

From the Baltimore Sun blogs:

A financial blogger gets it: Apple stock is cheap

Astute analysis of Apple Inc. among mainstream financial blogs is absurdly difficult to find.

Many bloggers and analysts alike recently have concluded AAPL is a “sell” based primarily on it being a consumer technology company, and as such vulnerable to the evaporation of consumer spending we?re likely to see in the coming months.

A few weeks ago I gave some reasons why Apple should get through the looming economic turmoil better than most companies, particularly competing consumer technology companies.

But yesterday I read a remarkable analysis by Andy Zaky on the financial news Web site Seeking Alpha. Zaky?s article also appeared on his own financial blog, Bullish Cross.

- Why Apple Got Sold Off!

Very informative article:

Hedge Fund Liquidations: Five Things You Need to Know

Apple mentioned. Now I know why they hammered AAPL.

Worth reading re Papermaster a senior exec hire from IBM

Re: - Why Apple Got Sold Off!

[quote author=“cramar”]Very informative article:

Hedge Fund Liquidations: Five Things You Need to Know

Apple mentioned. Now I know why they hammered AAPL.

Interesting.  And it makes a good argument for Apple to split the stock, making it a smaller target among Hedge Funds to sell first when they’re raising cash for redemptions.

Great article on consumer spending by Nobel Laureate

Re: - Why Apple Got Sold Off!

[quote author=“Mercel”][quote author=“cramar”]Very informative article:

Hedge Fund Liquidations: Five Things You Need to Know

Apple mentioned. Now I know why they hammered AAPL.

Interesting.  And it makes a good argument for Apple to split the stock, making it a smaller target among Hedge Funds to sell first when they’re raising cash for redemptions.

Please, no splits.

Re: - Why Apple Got Sold Off!

[quote author=“Mercel”]

Interesting.  And it makes a good argument for Apple to split the stock, making it a smaller target among Hedge Funds to sell first when they’re raising cash for redemptions.

I’m not sure how many hedge funds survived the last month, but the past few days have not seen the 2 o’clock redemption sell offs we saw earlier this month. In fact the hedge and mutual funds may start buying back AAPL if only for a short trade (till 130) if they think this rally has legs.

But we shouldn’t think that the situation regarding the hedge funds and AAPL has really changed. As the markets return to normal, I think we can expect a return to hedge manipulation. If the stock were to split, it would only make it cheaper for them to buy significant chunks, enough to push trades to their advantage. While small investors might be encouraged to buy in at a cheaper price, the big funds will still have the deeper pockets needed to stay in the driver’s seat.

Most articles, including lengthy posts here, are written to influence one’s thinking.  Be indifferent to the conclusions. Figure out the vested interest behind the articles/posts e.g. Why put up this article now? Why propose splits?

Re: - Why Apple Got Sold Off!

[quote author=“willrob”]

But we shouldn’t think that the situation regarding the hedge funds and AAPL has really changed. As the markets return to normal, I think we can expect a return to hedge manipulation. If the stock were to split, it would only make it cheaper for them to buy significant chunks, enough to push trades to their advantage. While small investors might be encouraged to buy in at a cheaper price, the big funds will still have the deeper pockets needed to stay in the driver’s seat.

Buying a lower-priced stock to dump it in volume by hedgies would invalidate the point made in the article.  You may be absolutely right, but the article is saying hedgies favor the big PPS for redemptions—I don’t know if this is accurate.  It’s one argument, but it may be a tenuous one.

Re: - Why Apple Got Sold Off!

[quote author=“cramar”]Very informative article:

Hedge Fund Liquidations: Five Things You Need to Know

Apple mentioned. Now I know why they hammered AAPL.

Nice read. But where can small time investors get timely information from hedge fund liquidations?

awcabot, if you want to get a good feel of what is going on within the hf-world, you’ll probably get the most info out of “funds of hedge funds” managers.

Hedge funds get about 50% of their money from these “funds of funds” which pool money from small time investors and create a portfolio of hedge funds. (Total hedge fund-industry size is approx $1800bln with $800-$1000 from funds of funds)
Usually, the ticket to get into a hedge fund is a few millions, but funds of funds start lower (100k maybe?)

You can call them as a potential investor and get some information regarding current market conditions.
Paris is a rather popular place for funds of funds because the French SEC (AMF) has created a rather flexible set of rules for these funds (under ARIA regulation).

Here re two timely article on the redemtion issue:

Hedge Fund Redemption Cycle Just Beginning

Hedge funds working to limit redemptions

maybe the mods can split-off the HF discussion.

Regarding redemptions, one of the dangers is that some funds of funds might collapse because at the end of the investment-chain you have investors in funds of funds who demand liquidity while hedge funds are lowering their gates (gates limit the amount of redemptions per month).

[quote author=“willrob”]Here re two timely article on the redemtion issue:

Hedge Fund Redemption Cycle Just Beginning

Hedge funds working to limit redemptions

The first article is “timely”? It has print date of 2 weeks ago!

[quote author=“quantman”][quote author=“willrob”]Here re two timely article on the redemtion issue:

Hedge Fund Redemption Cycle Just Beginning

Hedge funds working to limit redemptions

The first article is “timely”? It has print date of 2 weeks ago!

quantman,

You said hedge funds have 50%-60% cash.  Hence, it is likely that hfs has anticipated these redemptions and raised cash for it.  These type of articles ain’t complete unless they reconcile with the 50%-60% cash position.  Hfs are supposed to be nimble, articles imply they are passive and slow. Moreover, how can $43 billion redemption in Sep tumble the market by so much?