Last night after the close of regular market trading, Apple announced a very strong set of numbers across all metrics. The beat was even more impressive given how much negative cawing investors heard going into the print last night.
Every sweaty-palmed swami, pontificating pundit, do-over Dudley, kindly uncle and agony aunt out there was telling investors that the new Apple iPhone would be delayed forever or they were having problems with this part or that one, or this supplier or that one was behind schedule or that OEM was having supply chain issues.
They were trying desperately to talk you out of your investments in Apple for two simple reasons.
First, they were short Apple and there is nothing wrong with that. If I were short Apple or any other stock within techland, I would be trying to spread my negative gospel as well.
However, it's the second cabal, investors have to avoid like the plague. That's the no-skin-in-the-game gang but still have extreme opinions on just about anything. They are motivated by fear. Their own.
They have probably missed the entire rally in Apple from when it was a sub-$100 stock and so this category of sweaty swamis go around spewing as much negative as they can about companies. Their motivation? Talk down Apple to whoever will listen so either those listening will sell and thus not make any money on the name like the pontificating pundit himself/herself or they are hoping that investors will keep selling Apple and maybe the pundit will finally have the courage to step up to the table. This gang will often thump their chests about their uber-high cash levels while Chuckles (aka Mr. Market) runs merrily higher. Opportunity cost are merely two words for this cabal.
Despite the deafening noise, reality turned out to be very different from the fiction these people were spewing wherever they got an audience to listen to their negativity on Apple.
The company reported earnings of $1.67 per share on revenues of $45.4 billion versus Wall Street expectations of $1.57 per share on revenues of$44.89 billion going into last night earnings print for the June quarter.
Even better, Apple guided the current quarter ending in September to revenues between $49 billion and $52 billion or $50.5 billion at the mid-point versus Street expectations of $49.2 billion.
Most investors/analysts correctly surmised that the guidance proved that speculation about delays was just the usual negativity that surrounds Apple and the rest of the best of companies in techland. Part of the cost of doing business in techland, so to speak.
Even more importantly, the conference call, post earnings, was one of the most optimistic and bullish conference calls in the Tim Cook era, in my opinion.
So remember, when you hear the words, peak this and peak that and peak the other, try to remember these words as well; peak dishonesty, peak untruths and peak obfuscation.
Otherwise the negative nattering nawabs, the do-over-Dudleys, the no-skin/never any skin-in-the game gang will scare you into making silly decisions that will almost always cost you money.
The rabid negativity will only pick up more steam now from the above cabal including the darksiders who seem to have Midas money at their disposal or are trading/investing in fantasy land.
With the indices at all-time highs and with all the shouting from the roof top negativity and fear-mongering, it won't take much effort to knock things lower.
(Long aapl, long and short aapl options)