Apple Stock Dives, but do you know Why?


Suzanne Coleman

Apple stock (AAPL) is down 3.66% as I write this story.  Not good.  Is this because Apple sold a record number of its new iPhone model this past weekend?  No, that’s not it.  Is it because Apple is coming out with a free software upgrade for its computer users?  No, I doubt it.  But, I think I know what it is.

I own Apple stock (let’s question why another time…) and I just received a margin call on this equity.  E-Trade raised its capital requirements SIGNIFICANTLY and the call is due on Thursday.  Previously requirements were only 30% equity, they raised it to 45%.

As the stock fell yesterday, people are likely selling to cover their margin requirements today.  I could call around and see if other brokers have also raised their requirements, but since this is an unpaid gig, you’ll just have to include that as a likely possibility based on the stock’s recently unstable and unpredictable performance, with no underlying logic.  I wouldn’t throw my money at it without securing it either, at this point.  The company is good, but it could be better in many aspects, but that’s America today.  It’s one of the best though and I repeat myself yet again, there’s no logical reason for this drop in price.

In fact, today another analyst has started coverage with a 12-month price expectation at $150.  The average is now an expected $145.77 per Yahoo! charts.  With a PE of 12.51, that’s pretty good.  Exclude all the lofty dreams of google glass (oh wait, different company…), a magical Apple iCar, Apple streaming TV service, etc., this company still outperforms most businesses today.

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