Monday, March 10, 2008

How much more Google and Apple will continue to free fall

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How low can they keep on falling? Both had risen remarkably hitting an all time high late last year before making a massive free fall. Apple and Google had gone up to a high of about $200 and $750 respectively. Now they are both trading at $122.25 and $433.35 since the close of trading last friday.

Both had lost about 40% of market share since December. A huge market cap had been shaved off in less than 3 months. Thats crazy isnt it?

Even the Nasdaq and Dow didnt shave as much if you look at the comparison graph in image 3. How much more are they going drop off before it starts to rise? It certainly had not dropped to the point where they started. Apple was less than $10 some 5 years ago and look at where they are now with iPod and iPhone.

I must admit the recorrection is long over due as they had risen quite a lot as both the Dow and Nasdaq had dropped substantially for the past few months initiated by the sub-prime issues. Both companies including the market at large were certainly overvalued last year and the retreat was imminent but the free fall was way larger than the retreat on Dow and Nasdaq.

Will they continue to drop? I m not surprise if they will continue to fall further. The global market sentiment remain uncertain with the issues in the US. The US economy is already in recession and its only natural for stocks to be trading low. It will reach a point where many bargain hunters will return to snap up good deals from the market. Remember the success of companies aren't reflected by whats on the stock market, its all down to good fundamentals which shall include good products development, positive outlook and more importantly great leaders to drive the business. And both companies have most of the fundamentals. Lets not forget, they are so many happy and satisfied customers out there using Google services, iPods and iPhones everyday.

In short, whatever that comes down must go up. While there may be uncertainty in the short to mid term for both companies, but for the longer term, its great to be holding onto their stocks. What do you think? By the way, I m not a stock trading expert nor am I working for them....

1 comment:

Anonymous said...

The recession in US has made a great impact on the stock market and it remains to be seen how the situation improves. At this moment, it will be nice to discuss about some useful terms related to recession.

What is 'Recession Proof'?

You can almost hear the wallets snapping shut. Folks are cutting back on their spending every way they can.

According to those who know, we are either in a recession, or are about to be. I would hate to be trying to sell real estate or new cars right now. Talk about hitting your head against the wall. Ouch!

That got me to thinking of what businesses make sense during a recession. Certainly health care does. Baby boomers are going to need every kind of health care imaginable. For all I know, economic bad times makes
people sick too.

Other types of businesses that should be recession proof include vital home repairs, like plumbing, electrical, and roofing. Folks can't put off fixing a clogged toilet or a leaking roof just because they're a little short on cash.

And you know what they say about death and taxes. A well-run funeral home or a tax consulting business shouldn't be hurt by an economic downturn.

But all these jobs require training, and even certification. And that takes time. By the time you've learned one of these trades, the recession may well be over.

That got me to thinking about one business that's truly recession-proof, and you can get started almost immediately: Day Trading.

Day Trading refers to the buying and selling of stocks within the same trading day. I know what you're thinking: how can a day trader be successful when the stock market is down, day after day?

Well, day traders profit from volatility - when there are big swings in stock prices, there is money to be made.

It used to be that Day Trading
was only done by financial institutions with access to technology and information. Now, almost anyone with Internet access can become a day trader, if they know what to do.

Manny Backus

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