Thursday, April 18, 2013

Technology stock like Apple.

In company like technology stock, things are very unpredictable. Things change very fast.

"New technology, product launch, is it acceptable by consumer, how is the consumer taste now, why our taste change so rapidly without any sign, what is our future, can the company keep leading us into future, who are they, it is not them that decide our future, we are the ultimate user and decider of our future.....etc."

Look, how confuse are we about our future and hence the unpredictable of technology company. It is not like consumer product company where earning is more or less very predictable. We know we eat everyday and we are reluctant to change our habit.

For technology stock, as a prudent investor, I should not be too concern about the speculation of the stock price and earning. This is when the earning reporting season is near when the speculation noise is the loudness. The volatility of the stock is prompting a lot of people to enter into market because of higher probability to earn money when the stock price fell below your target price or rise above your target price. But we are always the outsider, we do not know exactly how the performance of the company during the period between the reporting time. Looking from outside, all the prediction is merely speculation unless the insider top executive personally reveal something. If not, it is better to wait for the earning report and decide after that. Everything will settle down after the reporting time. I will be more able to make better judgement.

Now the Apple is falling to USD400. How will it be 5 years from now? This is really who knows question....

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