Opportunity Lost

The overnight news on Monday morning was all about Steve Jobs taking medical leave from Apple (APPL).  This is a company with 46,600 employees and the news was all about how the temporary loss of one guy may adversely impact the company.  In its usual fashion BNN covered the story ad nauseam.  Each shift change brought more comments and analysis from BNN hosts and guest analysts.  I wasn't glued to the tube, but it seemed to me that it was about two to one on the negative side.  The more optimistic talking heads pointed out that COO Tim Cook, who would back stop Jobs in his absence, has twice before successfully run the company while Jobs recovered from cancer and a liver transplant.

While the US markets were closed on Monday Apple shares were selling off overseas.  Down 7% in Germany.  I wondered how Apple shares would open on Tuesday in the US.  I wondered if this may be an opportunity.  I didn't give it much thought as I have no liquidity in my trading account and I'm pretty happy with the stuff I'm holding.  

So, what happened?  Apple shares which closed Friday at $348.48 opened on Tuesday at $327.05 and traded as low as $326.00.  The shares gained most of it back as the day progressed.  In the early afternoon they reached $344.76 before settling back and closing the day at $340.65

So, then what happened?  After the markets closed Apple released Q1 earnings numbers which blew the doors off all expectations.  Sales for the quarter $26.6 Billion, up 71% from a year ago.  Profit, $6 Billion.  EPS $6.43 up 23%.  iPhone sales 16.2 Million units, up 86% year over year.  7.3 Million iPads sold.  This is a device, and a market, that didn't exist a year ago.  Holy crap!

Apple shares traded up to $346.10 in after hours on the Nasdaq.

Yes, Monday would have been a good day to put on a day trader hat, liquidate some assets and get ready for Tuesday's opening.  Day traders who pounced first thing yesterday morning made some serious money.  Yes, an opportunity lost.