I thought I would be able to make another 100% profit on my AAPL Call Options after the company announced its earnings that beat analyst estimates. The stock jumped almost 10% after trading hours to $90.70 a share. For the quarter, the company earned $1.61 billion (or $1.78 per share) up from $1.58 billion (or $1.76 per share) a year earlier. Revenue grew 6% to $10.2 billion. Analysts were looking for EPS of $1.40 on $9.74 billon in sales. During harsh environment such as now analysts are complacent and happy if you can beat street expectation. So long as you do not announce that your company has been cooking the accounting books or your key person is having cancers naturally you can expect the stock price to jump and gap-up.
However the Dow Jones and Nasdaq’s stars were not aligned and hence Apple Inc. (Nasdaq: AAPL, stock) was not able to breach the $90 a share resistance, not that it could prior to the earnings release but I expect the stock to do so this time around. But I have to be contended that the stock closed above $88 a share. With Dow currently trading at the strong support of 8,000 I expect there would be limited chance of major sell-off Friday. I hope my prediction will come true and the stock will test the $90 again and above that level thereafter; failing which I’ve to take the money off the table, close shop and enjoy the Chinese New Year *grin*.
Frankly I would have sold off my call options Thursday (even if no 100% profit) if my internet connection didn’t give up on me. Yeah, that sucks especially when you’ve open trading positions that require immediate action. Streamyx sucks but that’s the best line you’ve for the time being so you’ve to live with it. Equally sucks was when your Celcom line got barred because you forgotten (on purpose) to pay the bill. Hey, it’s not my fault that your bill didn’t arrive on my doorstep on time because I adopt a policy to pay to myself first before I pay to others *grin*. And even after I paid the line still got barred with the customer services promised roses that the line would get reactivated after half and hour but it didn’t happen *Celcom Sucks*.
Of course my ranting is nothing compared to politicians who suck big times especially the PM-in-waiting who almost swore that the country will never goes into recession. Heck, the country might have already experiencing recession as we speak else why the drastic 75 basis points cut to 2.5% on Wednesday. In fact most of researchers and analyst expect more cuts to come after Chinese New Year. If indeed the PM-in-waiting is confident that recession will never hit the shore, why adamant about the RM7 billion stimulus package and is now toying with the idea of another stimulus package? If you need billions of dollars to generate a nice positive growth number, that is equivalent to cheating. I supposed you know why the standard of education in the country is falling compared to foreign universities despite record after record year of high scorers. If you lower the standard of passing marks so that the education minister can claims such artificial achievement, it’s cheating. So what if you have 10, 20 or even 50-straight-A’s scorer?
You don’t really have to look too far to see the consequences of creating production lines that create graduates with low quality. Go to Jakarta and ask those people squatting on the street. Most likely they’ve a degree from some sort of universities. Singapore has unveiled a massive S$20.5 billion plan in its 2009 Budget to help Singaporeans keep jobs while Malaysia is still hiding the actual situation from the public. It’s perfectly alright if you trumpet a false hope provided you’ve the mean to contain the situation. But when you’ve potentially hundreds of thousands of jobless people coming back from Singapore and more sectors to be affected besides manufacturing domestically then you’re playing with fire. I’ve mentioned that there’s nothing wrong to prepare the people mentally about the coming recession so that they can plan for themselves how to cope with the situation.
Maybe it’s time the country needs Malaysia Obama who can reverse the stupid policies from previous Bush (Mahathir) administration. That’s right, the current ruling government sucks and things can only get worse without political will to drive the country into a better shape. Now that President Barack Obama has signed executive order for the closure of Guantanamo Bay detention facility, it’s high time the PM of Malaysia do the same to the ISA detention center. Let’s see how Najib can lies when the official figures about the economic situation are revealed. But I supposed once a liar forever a liar! What the country needs now is “Hope”, “Change” and “Progress”.
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