Piper: History favors investing before WWDC
updated 12:05 pm EDT, Tue June 3, 2008
Piper on WWDC trading
People looking to make a short-term profit on Apple stock may want to consider buying before a company event, and selling the week after, a new Piper Jaffray analysis suggests. The group says it has researched the trading history for the past 14 major events, and determined that Apple stock tends to climb 0.4 percent between the day before an event and a week after it; if the former duration is extended to a week before, the growth becomes 4.2 percent. During the events themselves, Apple stocks slide an average of 0.7 percent.
Apple's next event is the 2008 WWDC conference, scheduled for June 9th to the 13, at the Moscone Center in San Francisco.
Piper meanwhile notes that although 3G iPhone sales are likely to draw investors during the next month, they may also be lured in by Mac sales, Apple's biggest profit engine. NPD results from April suggest that while unlikely, Mac sales may be up as much as 50 percent year-over-year, compared to a Street prediction of 22 percent. Piper nevertheless argues that the scale of Apple's increasing marketshare is "being underestimated."
Fresh-Faced Recruit
Joined: Sep 2000
Wow
These guys are rockets scientists! When did they figure this one out??? Seriously, this is sooo not news. Considering capital gains tax on a stock is 35% if you hold it less than a year (last time I looked) you would have to make a SIZABLE investment to make this worthwhile. Holding it for a year is the better plan as it is targeted for mid to high 200's. If you bought earlier this year when it was at $120, as I did, you are in even better shape.