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MacBytes
May 17, 2007, 05:15 PM
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Category: Apple Hardware
Link: Did Anyone Else Notice that Apple Lost $4 Billion in Value Yesterday?
(http://www.macbytes.com/link.php?sid=20070517181533)
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Posted on MacBytes.com (http://www.macbytes.com)
Approved by Mudbug

miniConvert
May 17, 2007, 05:19 PM
I see the shareholders aren't quite as faithful as the actual customers...

netdog
May 17, 2007, 05:23 PM
I see the shareholders aren't quite as faithful as the actual customers...

I don't know about that. After every WWDC or MacWorld keynote, there seem to be an awful lot of complaints, and plenty of folks saying that Apple has gone down the tubes and that they are suddenly forced to consider Dells.

Even the quiet introduction of a new product can bring jeers from the faithful. Anybody remember the reaction here to the GMA950 in the MacBook? The MacBook was supposedly fatally flawed. What a joke. The MacBook is a fantastic little machine.

Anyway, the Apple faithful are perhaps the most fickle of all.

uaaerospace
May 17, 2007, 05:24 PM
This is why you don't trust everything you read online. If "Apple issued a press release today," it ought to be up on the Apple site. Go look before you sell 5 million shares. Dufas!

shamino
May 17, 2007, 05:34 PM
Anyone who trades 5 million shares on the basis of an unsubstantiated rumor is insane. Especially if the rumor claims to be a "press release" and Apple's official PR site shows no such release.

As for overall impact, there wasn't much of one. Looking at BigCharts (http://bigcharts.marketwatch.com/advchart/frames/main.asp?time=100&freq=9&compidx=aaaaa%3A0&comp=NO_SYMBOL_CHOSEN&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=2&style=320&size=2&sid=0&o_symb=aapl&startdate=5%2F16%2F2007&enddate=5%2F17%2F2007&show=true&symb=aapl&draw.x=52&draw.y=8), Apple's stock dropped from about 108 to about 105 at about 11:50am. It rose back to about 107.50 at about 12:20pm. It was back to 108 when the market opened this morning.

Those idiots who are willing to make major financial decisions on untrustworthy data get everything they deserve. The rest of us were completely unaffected.

MacBandit
May 17, 2007, 10:34 PM
I read that this was a direct result of the Engadgets post about the iPhone and Leopard being delayed.

thejadedmonkey
May 17, 2007, 10:40 PM
Hypothetically speaking, couldn't Apple then sue Engadget for public defamation to the tune for $4b.?

miloblithe
May 17, 2007, 10:49 PM
Hypothetically speaking, couldn't Apple then sue Engadget for public defamation to the tune for $4b.?

What did Apple lose? The stock regained its value by the end of the day.

So I'm going to go with no.

MacBandit
May 17, 2007, 11:41 PM
Hypothetically speaking, couldn't Apple then sue Engadget for public defamation to the tune for $4b.?

Probably not since it wasn't an official statement just a rumor.

shamino
May 18, 2007, 09:54 AM
Hypothetically speaking, couldn't Apple then sue Engadget for public defamation to the tune for $4b.?
Defamation? For posting a rumor on a rumor site? Not likely.

And you really can't sue if you didn't suffer any damages. Apple suffered none. That crazy investor who dumped 5 million shares without checking his facts suffered damages, but any reasonable person would see that he created his own damage by making a $500M investment decision solely on the basis of an unconfirmed rumor.

IJ Reilly
May 18, 2007, 10:45 AM
Defamation? For posting a rumor on a rumor site? Not likely.

And you really can't sue if you didn't suffer any damages. Apple suffered none. That crazy investor who dumped 5 million shares without checking his facts suffered damages, but any reasonable person would see that he created his own damage by making a $500M investment decision solely on the basis of an unconfirmed rumor.

Well, if whomever circulated the rumor can be found, and also found to have profited by it (shorting AAPL would be the way), then they could be charged with a violation of securities trading laws.

With AAPL having gained so much over the last few weeks, mainly as a result of speculation, you'd expect the markets to be pretty jumpy. AAPL is, as they say, "priced for perfection."

SMM
May 18, 2007, 11:04 AM
The stock has run up and some people are going to take profit. That is the way the market works. I bet most of those who sold, bought back in. The stock is currently 109.98, up .48%. I really do not see where there is a point to make here.

SPUY767
May 18, 2007, 11:20 AM
Replace the term, "Duty Bound" to "With spite in their hearts," and you have a much more accurate article. Engadget, as good as they are with tech gizmos, has a lot of anti-Apple folks slumming around and it was one of these folks who quite gleefully reported this info.

shamino
May 18, 2007, 04:13 PM
Well, if whomever circulated the rumor can be found, and also found to have profited by it (shorting AAPL would be the way), then they could be charged with a violation of securities trading laws.
Sure. But you'd have to charge the source of the false rumor. There's no way you're going to be able to sue Engadget's management over this unless you can show that they knew the material to be false and printed it with intent to participate in securities fraud.

Good luck finding the smoking gun needed to demonstrate that whopper.

And, of course, if the guilty party (assuming there was a crime committed at all) didn't short the stock, but bought shares during the 10 minutes it was depressed, you'll never be able to prove anything. An innocent person could just as easily have decided to buy-in after having seen that drop.

IJ Reilly
May 18, 2007, 04:52 PM
Sure. But you'd have to charge the source of the false rumor. There's no way you're going to be able to sue Engadget's management over this unless you can show that they knew the material to be false and printed it with intent to participate in securities fraud.

Good luck finding the smoking gun needed to demonstrate that whopper.

And, of course, if the guilty party (assuming there was a crime committed at all) didn't short the stock, but bought shares during the 10 minutes it was depressed, you'll never be able to prove anything. An innocent person could just as easily have decided to buy-in after having seen that drop.

Right, you'd need to find the source. The SEC is pretty good at finding perpetrators of pump-and-dump schemes, which this is essentially in reverse.

SiliconAddict
May 19, 2007, 03:07 AM
Anyone who trades 5 million shares on the basis of an unsubstantiated rumor is insane.


Better yet anyone who trades 5 million shares based on a blog entry is retarded. I mean really? WTH?! But what do you expect. Its the stock market. You could yell fire on the floor and people would start buying stock in thermal suits. :rolleyes: