I've been following Apple as a stock for years. It was the first stock I ever purchased - 10 shares around 1980.

I own a bunch of it, purchased a various times over the past 8 years. I'm way up.

Yesterday, another big announcement. New phone, lower cost, .ME subscription service.

The stock went down. Why?

Well, a couple of things to remember. On any given day, a stock price has nothing directly to do with the fundamentals or health of a company. The price is a product of supply and demand.

Yesterday, more people wanted to sell than buy... the price goes down.

Lots of smarter people than me (Warren Buffet being my favorite) point out that great companies perform very well over time - that there is a 100% correlation - sooner or later great, profitable companies are rewarded with higher valuation.

Back to Apple - my first take, watching the Keynote address by Jobs - Apple just launched a $99 a year "Exchange for the rest of us." - and lowered the price of their phone, and made it a lot more usable.

I doubt this makes the company worth less in the long term.

I'm not selling, I'm buying.

Labels: apple

This entry was posted by Mike Nolan, on Tuesday, June 10, 2008. You can leave your response.